Cryptocurrency ICO vs Cryptocurrency Pre-ICO

TheMerkle Cryptocurrency Pre-ICOThe world of cryptocurrency ICOs has been on fire as of late. In most cases, these ICOs cause quite a bit of strain on the Ethereum network, which is anything but enjoyable. It now appears a lot of projects are running so-called pre-ICO token sales as well. This allows teams to collect even more money, while investors get cheaper tokens. 2. Cryptocurrency ICO The concept of a cryptocurrency ICO has been documented quite a few times already. In fact, we have a whole series on this particular market phenomenon, which covers most of the information people need to know. Although

TheMerkle Cryptocurrency Pre-ICO

The world of cryptocurrency ICOs has been on fire as of late. In most cases, these ICOs cause quite a bit of strain on the Ethereum network, which is anything but enjoyable. It now appears a lot of projects are running so-called pre-ICO token sales as well. This allows teams to collect even more money, while investors get cheaper tokens.

2. Cryptocurrency ICO

The concept of a cryptocurrency ICO has been documented quite a few times already. In fact, we have a whole series on this particular market phenomenon, which covers most of the information people need to know. Although investing in a cryptocurrency ICO can be quite lucrative, it is taking longer for tokens to get listed on decent exchanges. This causes a lot of users to get quite nervous about their investment, which is understandable.

This brings us to how cryptocurrency ICOs are currently developing. The money is raised a lot quicker compared to how much time it takes to sort out technical issues, refunds, and getting listed on exchanges. To a lot of people, this makes no sense, especially when projects raise over $10m during their ICO. Surely they could use that money to speed up the listing process and make investors a lot happier? Unfortunately, that is not how things work right now.

Contrary to what most people expect, there is a lot more to getting listed on an exchange than just paying a fee. Especially where ERC20 tokens are concerned, as smart contracts need to be audited by a third party. This causes some delays, which means some investors will panic sell on smaller exchanges as a way to minimize losses. If this trend keeps up, a lot of ICO projects will go under well below they even get a listing on Bittrex or Poloniex. That is very unfortunate, to say the least.

1. Pre-ICO

This brings us to a somewhat newer phenomenon, which is known as a pre-ICO token sale. As the name suggests, a pre-ICO allows investors to buy tokens before the official crowdsale begins. In most cases, these pre-ICOs raise a much smaller amount of money, and offer tokens at a lower price with a substantial bonus. More specifically, finding a pre-ICO with a bonus of 40% or more compared to the ICO price is not all that uncommon.

It is worth noting a pre-ICO often uses a very different smart contract compared to the actual ICO itself. This is done to separate funds and ensure these is no confusion. However, it can also create some uncertainty regarding how much money has been raised in total. Since the pre-ICO numbers are not included in the actual ICO numbers, there can be some sort of a discrepancy. Plus, it also means there may be far more tokens issued than people initially assume.

When a project launches a pre-ICO token sale, they need to do their due diligence. Being transparent about the money raised and the number of tokens issued is of the utmost importance. One negative side effect of pre-ICOs is how early investors often sell at ICO prices once a token hits an exchange. In doing so, they still make a very big profit and cripple the token’s price in the process. A pre-ICO is an amazing investment opportunity for a quick buck, but it can hurt the project’s appeal and credibility when large amounts of tokens are sold at bottom prices.

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Ethereum Gas Limits – Hold vs Raise vs Lower

TheMerkle Ethereum Gas LimitThe Ethereum ecosystem is going through a lot of problems right now, which is to be expected. A lot of transactions can effectively cripple the network with relative ease. To counter this problem, the mining pools and miners can now vote on whether or not the gas limit needs to change. So far, the opinions are quite divided on this matter, however keeping things as they are right now will not do the ecosystem any favors. 3. The “Hold” Camp When glancing over the current miner gas limit voting numbers, it is evident very few people are in favor of keeping

TheMerkle Ethereum Gas Limit

The Ethereum ecosystem is going through a lot of problems right now, which is to be expected. A lot of transactions can effectively cripple the network with relative ease. To counter this problem, the mining pools and miners can now vote on whether or not the gas limit needs to change. So far, the opinions are quite divided on this matter, however keeping things as they are right now will not do the ecosystem any favors.

3. The “Hold” Camp

When glancing over the current miner gas limit voting numbers, it is evident very few people are in favor of keeping things as they are right now. In fact, only one mining pool wants to keep things the way they are right now. That particular pool goes by the name of Ethermine, as it appears they are more than happy with the way things are going right now. Ethermine controls around 24.9% of the Ethereum mining hashrate, which means they have a fair amount of influence.

The bigger question is why this pool would prefer to keep things this way. Keeping the gas limit as it is will force people to spend more gas for quicker transaction confirmations. That will benefit the miners, as they get paid more money to include transactions in a block. Since one of every four network blocks would be mined by Ethermine, that could result in future network congestion on a very regular basis.

2. Camp “Lower”

It is evident the rest of the mining pools are somewhat divided on how the gas limit should evolve. Three different mining pools, as well as a lot of individual miners, are in favor of lowering the gas limit. The pools supporting this stance include Coinotron, Ethpool, and F2Pool. These three pools combine for a total of 30.2% of the total Ethereum mining hashrate. That is not enough to gain majority consensus, but it puts things into a different perspective.

Lowering the gas limit would have some interesting consequences, to say the least. Any transaction disregarding this lower limit would effectively be rejected by the network clients moving forward. It would certainly prevent network congestion from taking place because some people pay thousands of dollars for a quick confirmation. However, it may still lead to congestion just because everyone is sending at the maximum gas limit at the same time. An interesting situation to keep an eye on, that much evident.

1. Camp “Raise”

The vast majority of Ethereum mining pools would like nothing more but to raise the Ethereum gas limit moving forward. Dwarfpool, Nanopool, Ethfans, and MiningPoolHub all want to see the Ethereum gas limit getting raised rather than anything else. These mining pools combine for a total of 38.4% of the total Ethereum hashrate. If things remain this way, it is evident nothing will change in the future.

Raising the gas limit will be quite controversial. It would make Ethereum transactions more expensive for everyone, assuming they want to see their transfers confirmed quickly. Raising the gas limit could also create a scenario during which attackers make full nodes execute infinity loops. In theory, this can only occur when there is no official gas limit. However, by raising the limit right now, such an attack vector gets one step closer to becoming a reality.

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Liqui vs YoBit vs Livecoin

TheMerkle Liqui YOBit LivecoinIt is evident there is a lot of interest in smaller exchanges right now. This is especially true where cryptocurrency ICO investors are concerned. These smaller exchanges will often list ICO tokens as one of the first, which creates interesting buying and selling opportunities. ICO tokens will often find their way to Yobit, Liqui, and Livecoin. Let’s see how these three exchanges compare to one another. 3. Liqui When visiting the Liqui website, it is evident this platform is not exactly professionally designed. In fact, it is a rather bland design that leaves much to be desired. Then again, Liqui

TheMerkle Liqui YOBit Livecoin

It is evident there is a lot of interest in smaller exchanges right now. This is especially true where cryptocurrency ICO investors are concerned. These smaller exchanges will often list ICO tokens as one of the first, which creates interesting buying and selling opportunities. ICO tokens will often find their way to Yobit, Liqui, and Livecoin. Let’s see how these three exchanges compare to one another.

3. Liqui

When visiting the Liqui website, it is evident this platform is not exactly professionally designed. In fact, it is a rather bland design that leaves much to be desired. Then again, Liqui has an active trollbox, which is something a lot of people will appreciate. Liqui also supports quite a few different cryptocurrencies and tokens which can be traded against, Bitcoin, Ether, and USDT.

One reason why Liqui is so attractive is because this platform generates a good amount of trading volume. They are also relatively quick when it comes to adding new ICO tokens on their exchange, which often see a nice amount of volume as well. Liqui gets some decent reviews so far, as the Ukraine-based exchange seems to be doing exactly what people expect.  However, there could always be some issues when dealing with smaller exchanges, thus your mileage may vary.

2. YoBit

The YoBit design doesn’t look all that different from Liqui, yet their menu is a bit easier to navigate. Moreover, they seemingly present the coin information in a far more convenient manner, which is what people are looking for these days. YoBit also supports a lot more coins, albeit it appears they can only be traded against Bitcoin or the US Dollar right now. No Ethereum trading pairs can be found on this platform at the time of writing.

That being said, there are some things to worry about when using YoBIt. Rumor has it the platform is under investigation by Russian authorities. It is unclear if there is any truth to the rumors, but given Russia’s uneasy relationship with cryptocurrency, it is not impossible. The platform also has a poor overall user review rating, mainly due to lackluster support and accounts seeing passwords changed. Once again, your mileage may vary, but be aware these allegations are floating around on the internet.

1. LiveCoin

Out of these three exchanges, LiveCoin has the most professional layout by far. It looks like an exchange people would like to use, rather than something created by putting tables together in an HTML editor. A proper design template can go a long way when presenting a trading platform to people from all over the world. Moreover, Livecoin has a lot of trading markets, mainly focusing on trading against Bitcoin, the US Dollar, Euro, Ether, and the Russian Ruble.

A lot of cryptocurrency ICO tokens find their way to Livecoin pretty quickly as well, which is good to see. The company is getting a lot of mixed reviews from users, although the overall response seems to be positive. The platform itself is getting a lot of praise, even though the web frontend is not to everyone’s liking, which is to be expected. Always be wary when dealing with smaller unregulated exchanges, in my opinion LiveCoin seems to be trustworthy.

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