Funds and money in cryptoFunds and money in crypto
First, let's determine why money are required for the project.
Money . The first and most evident thought that occurs to mind. A startup exchanges a portion of its stock or tokens (often a soul) for digital evergreen paper. Is it feasible to grow your business without these funds? Certainly, you can, but why? When a team has operational cash flow, it can stop pursuing profits from day one and instead focus on developing a high-quality product that will bring a lot more profit for everyone in the long run.
Expertise . Every big VC has a whole team of specialists that can assist a new or not-so-young startup with a variety of difficulties, including business model development, tokenomics, marketing, and cost reduction. Even if a developer is a talented coder, this does not guarantee that he or she can create a lucrative firm.
Connections . The fact that funds invest in dozens of initiatives necessitates communication with hundreds of thousands of professionals worldwide. There may be an intriguing project in the investor's portfolio with which one might form a relationship or attract customers.
Quality rating . When a cool fund invests in a firm, the rest of the market receives a signal to keep an eye on them. If stock experts who evaluate hundreds of companies every month opt to invest in the team, then the startup's concept and potential are rather strong. While this does not alter the fact that even market experts occasionally miss the mark.
We have therefore determined why we require a financial investment and will proceed. The following important question is how much was invested in the project.
It would appear that more is better. However, this is not always the case, at least not in our experience as bold speculators.
When 100-200 million dollars are invested in a token, this indicates that the minimum FDV is already trying for a billion dollars, making it considerably more difficult for early investors to obtain Xs with sensible prices on the listing. Therefore, purchasing such enormous items at the beginning of the market is a mediocre idea, however participation in their activities is an excellent idea.
On the other hand, if they invest too little ($100-$300k), this may indicate that they don't trust much in the progress just yet; other funds invested three kopecks just in case. With this alternative, however, there is a substantial potential for X, as was the case with My Neighbor Alice, who, after privately accumulating two lyams, moved to binance and made their early investors and players wealthy. I should emphasize, however, that this is a relatively unusual occurrence, which occurred owing to the bull market's enthusiasm.
Ideally, we are interested in anything that falls between the preceding two criteria. A $5-$20k investment gives ample room for X's on the listing, and is sufficient to form a really cool team and develop the product.
Cryptofund
ICO Boom Helps Bitcoin Break $5,000This week, Bitcoin refreshed its all-time highs hitting $4,926, according to data from Bloomberg. CoinDesk index says that the price exceeded $5,000 level.
So, this is it. It took about a month for Bitcoin to come back to levels seen early September, even on the back of unfavorable news out of China and negative comments of Russian President Vladimir Putin, and somber forecasts of the IMF former chief economist Kenneth Rogoff. The latter said on Monday that "in the long run, the technology will thrive, but that the price of bitcoin will collapse." But will it?
Yes, the price of Bitcoin came too close to a strong resistance level never broken before. However, given the recent splash of activity in ICO projects, you can be sure – the growth is not over.
According to Coinschedule stats, the total amount raised during the ICO in 2017 is $2,719,758,302. Last year it was just $96,389,917! Its 28 times less than during the first 9 months of this year! And just think – the ICO tokens are bought by cryptocurrency driving the crypto transaction volumes to unprecedented levels. Moreover, the PR of these ICO is also paid in crypto currency. Mostly, Bitcoins. And it’s a huge industry.
Do you still doubt $5,000 is to be broken in the nearest days?
Waiting to push the boundariesAt the moment Iconomy seems to be a sleeping beauty, that waits for starting another leg in it´s cyclic run on the logarithmic scale. Their cryptocurrency fund is doing very well, which shows Iconomi´s ability to manage such a fund smoothly in times of extreme volatility.