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ICO vs IEO: Pros and cons, and Why exchanges would want to list new projects.

With an exciting idea in an innovative mind, new products are potentially born. For every new unique cryptocurrency project, the crypto space expands. Over the years, tons of new projects have emerged. These projects proffer solutions to real-world issues through products built on decentralized and distributed networks.

Bringing a new cryptocurrency project to life sounds easier than it could get. An average of over five hundred (500) new cryptocurrency projects emerge yearly and aim for prominence in the crypto space. Surviving this challenge is a struggle. This struggle is even more intense for infant projects. A feasible idea and a practical use case are paramount to the survival and success of new and existing projects. A couple of other factors also contribute to this.

In a capitalist world, financing new ideas to life follow the due process of fundraising and hunting for start-up investors. Successful fundraising generates enough funds for new projects. Apart from funds, it also generates the initial set of believers who have faith in the ambitions of the project. Investors believe in the founders and the potential of the idea they have invested in. Fundraising thus goes beyond gaining financial buoyancy to push a new idea.

For cryptocurrency projects; Public Initial Coin Offerings (ICO) and Initial Exchange Offerings (IEO) present fundraising opportunities. Before the advent of IEOs, public Initial coin offering has been the principal means of fundraising for new projects.

Thanks to Ethereum’s smart contract technology and other blockchains with similar features, new projects can generate cryptographic tokens. These tokens run parallel to the blockchain’s native token. To raise funds for the development of this project, project founders offer a percentage of its total token supply. These tokens are sold to investors at a presumably low price in exchange for funds. Through Public Initial Coin Offering, project founders directly sell these tokens to investors…

Public ICO : How did it go wrong?

Due to a series of infamous events; public ICOs have been marred by scams. Other problems include contract breaches and project failures. This has become unreliable for investors. For project founders, fundraising through public Initial Coin Offering (ICO) has also grown tedious. In public ICO, a project bears the total burden.

Success in raising funds via Public ICO solely depends on a project’s ability to properly market its idea to the general cryptocurrency community. Reaching out to the world outside the crypto space is phenomenal. This would take special marketing skills…and a bit of luck.

In the absence of prominent affiliates or partners, this gets even harder. New projects face the hurdle of creating assurance for intending investors. There is a need to prove beyond doubt, the feasibility of their theories and the importance of the utility they hope to create. Even when properly done, public ICOs haven’t been very efficient for project founders. New projects still face the challenge of pushing their product to the market after a successful Public ICO.

Public ICOs leave new projects bare. Most new projects struggle despite having conducted a successful ICO and raised tangible funds. A good percentage of new projects have also failed to survive this struggle while many more have been limited in their potential. Either way, this spells grave losses for initial investors. These struggles led to an outbreak of ICO scams.

IEO: Exchanges to the rescue?

Initial Exchange Offerings (IEO) have grown since then as an alternative to Public ICO which continues to be riddled with its shortcomings.

An Initial Exchange Offering is a form of ICO conducted by cryptocurrency exchanges. To conduct an IEO, new projects partner with exchanges to oversee their token sale. In contrast to public ICOs, this exchange provides a platform for token sales. Exchanges also influence the marketing of the new project as well as its token sale. Depending on the agreement between the two parties, the exchange could handle the majority of the token sale workload. This lessens the burden of fundraising for the project founder(s).

IEOs solve numerous fundraising issues. In addition to the aforementioned, partnering with a reputable exchange further assures investors of the legitimacy of the new project. With the reputation of the exchange at stake, it is very unlikely that it would partner with shady new projects for fundraising. Exchanges via IEOs simplify token offerings and fundraising programs for new projects.

Exchanges such as Binance, and Huobi have developed fundraising models on their platforms.

Exchanges apply cautions and regulations. These caution and regulations make this process safer for investors who are also their customers. A Project after IEO will be immediately listed on the exchange. The project’s life in the crypto space gets off stylishly. IEOs are thought to salvage the fundraising process in cryptocurrency. ‘Exit scams’ by projects who conducted an IEO is a rare story.

However, it’s never all shades of good. IEOs, despite being a masterpiece also have their shortcomings. In contrast to Public ICOs where projects are free to sell their token to any buyer; token sale one exchanges (IEO) are only open to traders on the specific exchange. Depending on the universality of the exchange and user regulations, the token purchase is limited to a certain set of people. For exchanges whose services are not available in certain geographical locations, investors in such locations will be unable to participate in the initial token sale. Exchanges introduce another level of centralization to initial token sales and fundraising programs. This centralization also improves investor security, but still, its limitation is tangible.

What exchanges consider before listing new projects

IEO projects find it relatively easier to get listed on exchanges than public ICO projects.

But why would exchanges consider listing new projects.?

Regardless of the fundraising process, the listing process for every project is the same. Some reservations might exist where the project has a special relationship with the exchange. Apart from situations like this, consideration for listings is a uniform process for most exchanges.

A project’s reputation speaks for it. A good project is on the trajectory for spontaneous success…most times. The relationship between exchanges and projects listed on its platform is mutual. A shady project dampens the reputation of an exchange. Reputable exchanges are clever to refute approaches by shady projects. Transparency is a vital feature considered in the process of token listing.

A project which satisfies this criterion is further assessed for its fundamentals and vulnerability to regulations. Security tokens might face hardship in listing on exchanges due to regulations that bind them.

Market viability and user base are also considered. However, for a project which satisfies the criteria mentioned earlier, the chances of getting accepted by exchanges grow higher and are expected to gain more userbase and grow in market performance with time.

IEO projects find it easier to get listed on other exchanges. This is mainly because they already satisfied these criteria before their fundraising proposal was accepted by their parent exchange.

29/01/2023
Is there a ‘right’ time to invest in cryptocurrency?

Whether you are here for the ‘quick bucks’ or for the technology; one thing is certain, you wouldn’t want to lose your investments to price crashes and the constant fluctuations in the values of cryptocurrencies. Regardless of one’s financial status as an investor, good profits delight every investor. But making profits in cryptocurrency sounds easier than it could actually be…well, sometimes it sounds harder anyways.

“Buy low, sell high”; or better still, “buy the rumour, sell the news”. A couple of phrases have been coined to insinuate the best time to buy cryptocurrencies…and the best time to sell them. Either you are buying when the price ‘appears’ to be crashing or you are buying before an official ‘exciting’ announcement by a cryptocurrency project team. For an investor, any of these two times is presumably the best time to invest in a cryptocurrency project. A huge majority of cryptocurrency enthusiasts are in search of times like this.

But if there is any sector where rules don’t exist, the crypto space will surely be one, if not the only. Price movements, use case valuation, projects’ permanence…you name it. Every aspect of cryptocurrency is highly variable and there are almost no experts and everyone appears to be Predicting. These predictions could go either way.

In the same vein, the “best time” to invest in cryptocurrency projects has been a popular gamble. When to buy, when to sell; it would have been very interesting if anyone could tell for sure the best time to do these. Whenever you have a satisfactory gain or when you’ve had enough of the loss, you can sell off your cryptocurrency holding, hence, the best time to sell is way easier to decide.

However, this is different when it comes to buying/investing. Investing in projects at the ICO level is one of the options. Altcoin projects sell several tokens to raise money for the projects’ development and marketing. Tokens are sold at a relatively low price. Investors predict low chances of tangible price drops below ICO levels. Well, this is the case some of the time, but the story could be very different some other times. Several projects have struggled after their ICO and impatient and unimpressed investors move to sell their stakes below the ICO price. For an investor who bought at the ICO price, it wasn’t the very best time to invest.

What’s another ‘better’ time to buy? Dip time? Well, learn to buy the dip…I’m finding it too hard to learn that, lol. When cryptocurrency prices dip, the market is only allowing youto invest. Dip times allow you to buy more at lesser prices, sell pressure overpowers the buying pressure and the market comes crashing. After a 10% price drop, buying the dip looks tasty, depending on how exciting a project’s fundamentals are, investors swarm to get some cheap tokens from weak hands dumping their stakes. However, the 10% drop might just be the first of many to come. When this is the case, prices keep crashing and the dip continues, and yes, the dip continues…lol. When this happens, your “best” time appears to be just a ‘good’ time if at all the project completely recovers from the dip.

Well, ‘buy the rumour, sell the news’. The crypto space is not only an innovative zone, it is also home to the biggest marketing hype and propaganda. When in obscurity about a pending announcement, influencers and holders tend to hype a pending announcement. A SpaceX collaboration? A merger with Tesla? Lol, you could see rumours like this fly around in suspense. But these could lead to huge price jerks running in multiples, the actual announcement most times is unable to impress the already elated investors who hope their investments become the project that flips Ethereum…or bitcoin. Investors take advantage of this to buy before the rumour spreads and sell just before the actual announcement. Sometimes the news is worth the hype and the price uptrend continues, but an investor should have less to complain about if the gains were good.

The best time to invest is relative, largely personal and determined by your willingness to hold on for dear life or to sell at a loss, or profit. It doesn’t get any worse than a terrible price drop, but investors stand a chance of recovering if they can hold on till when the price recovers — if it ever does. It is hard to determine the best time to put your money on the road, but it is easier to develop patience for your investments regardless of when you invested or where the price is at the moment. Cryptocurrency investments are risky and good research only lessens your chances of hitting the rock with your investment, but a good HODLing attitude increases your chances of striking gold with your investments.

29/01/2023
‘Tokenomics’ in cryptocurrency: A crash course

Prior to the hard currency era, the barter trade system attaches value to real goods. Even in that era, real goods become a token of exchange. The valuation of an item depends on its availability and the demand for it. Tokenization is as early as ‘exchange’ itself.

A Token is a store of value attached to a concept, an event, or a project. Tokens attached to a project tend to embody the value of the project itself. A token hence is a representation of the value of the concept it is attached to. In simpler terms, a token derives its value from the concept or project it is attached to.

Tokenomics in plain terms is Token economics. Broadening this definition, tokenomics, it’s the science of token valuation, it encompasses every financial aspect of a token attached to a project and every effort of the project which affects the value of the token.

With the pitfalls of the barter system over-shadowing its advantages, concerned governments sort better ways to exchange and ease the burden associated with the barter system. This gave birth to our present-day idea of Tokenization. Introducing many solid materials as a store of value, and finally issuing Currencies as a store of value, these governments not only tokenized the market and the commodities traded, they tokenized the country/community as a whole.

Tokenomics in cryptocurrency

Blockchain technology has gained numerous applications. As a versatile technology, it supports several use cases depending on how it is been developed and the applications built upon it. For some of these applications, it is used plainly as a blockchain.

However, for most blockchain projects, cryptographically generated tokens are created to allow their users to perform some activities on the blockchain. Such blockchain projects are said to be Tokenized. cryptographic tokens assume the role of a token in its real sense.

Cryptographic Tokens attached to blockchains are generally known as cryptocurrencies. Apart from enabling users of the blockchain to perform activities on the blockchain, it incentivizes the users and represents both the financial and technological strength of the project. Cryptocurrencies reflect the value of the blockchain project which is attached.

What’s in the economy?

Token generation and distribution

Scarcity breeds value, this is a prominent idea in tokenomics. Cryptocurrencies are not indifferent to this. The rate of generation of blockchain tokens and the distribution scheme affects its reputation and subsequently value. Cryptocurrencies are generated via mining or staking as the case may be. Smart contracts blockchains also allow the creation of separate tokens for applications running on them.

For Proof-of-work blockchains whose tokens are generated by mining, miners are rewarded with tokens for solving puzzles and mining blocks. The number of tokens rewarded per block determines the rate at which the tokens are generated and this also affects the distribution. Blockchain developers introduced the concept of ‘halving’ to reduce the mining rewards over time hence reducing the rate of generation and distribution in order to build value. Projects with pre-mined tokens are often discriminated against as this is already a poor tokenomics practice.

Proof of stake blockchains rewards their users for locking up a certain number of tokens in their wallets or in a staking pool. This is a passive way of generating tokens. The number of tokens rewarded to each staked depends on the number of tokens they have locked up in their wallets or in the pool. Proof of stake blockchains also meets some discrimination as a passively earned token hardly earns enough reputation. Users are more eager to sell off passively earned tokens.

For the above reason, proof of work blockchain tokens usually get valued more than proof of stake blockchain tokens. There may be exceptions to this due to reasons mentioned below.

The functionality of the blockchain and utility of the token

Regardless of the generation and distribution scheme of any cryptocurrency project, the functionality, and utility of the blockchain is paramount. This simply explains why ripple sits third on the market capitalization ranking with over forty (40) billion tokens in circulation. How does the blockchain work? and what use is the blockchain? A good cryptocurrency investor must first ensure that the project answers these questions satisfactorily.

For national currencies, the GDP and financial stability of the nation play major roles in its valuation; for cryptocurrencies, it is the functionality of the blockchain and its use cases. The problems a blockchain solves and the population which adopts it (or will adopt it) is enough to drive the value to the moon or to the mud, regardless of how it is been generated, the amount in circulation, or how it is been distributed.

Developing a good use case for a blockchain project and working towards building a flexible blockchain that achieves this is the master key to a valuable blockchain token. A good generation and distribution scheme adds even more taste to this. A good example is bitcoin which sits first in the capitalization rankings with just over eighteen (18) million tokens in circulation.

Viability and the overall reputation of the project

How active a project is and the reputation of the project, the community or team behind it, affects the value of its tokens notably. The XRP army or the bitcoin maximalists? these are two very popular communities in the crypto space. The role they played/are playing in driving the value of their associated cryptocurrencies rings a bell across the crypto space.

A community standing behind a project and propelling its success has proved to be of value over the years. A good tokenomics practice may include building a great community around a project. However, this cannot be achieved without at least a promise of a potential good utility for the token.

This promise backed up with visible proof of hardwork from the team towards achieving this goal and also sincerity and transparency from the team is the first step towards attracting a good user base. The user base builds the community, and continued dedication and good practices by the team grow this support and solidifies the stance of the community on the project.

Considering a project’s tokenomics as an investor/enthusiast

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The crypto space has a very dynamic atmosphere, with new projects springing up frequently and existing ones striving to gain ground in this very competitive industry. Each project comes in with a new concept and a proposal that aims to solve an issue. Written carefully in their whitepapers are plans and road maps towards achieving this stated goal. Each paragraph comes with a promise and a vision.

Despite these promises and carefully crafted proposals, a higher percentage of new projects fail. Most existing projects are merely struggling to retain their investors, stay in the game and make progress. This is always below the expectations of the investors who are compelled to invest in these projects because of the visions…and promises.

Each project which fails to live up to its promises incurs grave losses on the investors and drums home the importance of careful investigation prior to investment. Taking a deep look at the tokenomics of a cryptocurrency project cannot be over-emphasized.

A project which fails to present a feasible use case and a flexible functionality is a huge gamble. Having a good branding, token generation and distribution scheme may appeal to the shallow view of investors. For a clever investor, a shallow view appeal should be a mere attraction. A closer look at the feasibility of the proposals and the abilities of the project team is paramount to building trust and making careful investments.

29/01/2023
How to DCA (Dollar Cost Averaging) like a pro.

You’ve been told to keep throwing in more money on your crashing asset to reduce the average purchase price. Saylor bought over 20k bitcoins at an average price of about $34,000. Considering the difference between the highest and lowest prices he bought them; that’s a long journey and a whole lot of Dollar Cost Averaging (DCA).

Dollar Cost Averaging?

What does that even mean? Well, if you have the habit of buying more of a particular asset even as its price keeps falling down the cliff, then you’re Dollae Cost Averaging, without even knowing the general term for what you are doing. A majority of cryptocurrency investors do this a lot, myself too. A pure show of belief and dedication…or just greed.

Even your favorite Twitter influencer told you at least once to “fill your bags at these prices”. Even as the price goes lower, you still fill ‘those bags’. Dollar Cost Averaging and hoping for better days. Sometimes they come, other times…well, bagholding is also part of the game. If you are an active DeFi participant or a meme token connoisseur, you probably have tons of tokens you might never sell again. You kept buying down the molehill and now there is no way back up the dark pits. It happens.

The advice to keep buying the dip and HODLing is a popular one, but there’s something you’re not being told…yet.

In a space filled with thousands of projects claiming superiority, it is easy to lure investors with well-crafted promotional pieces. Everything runs down to why you should invest and continue doing that even when it all looks dark, or at least hold on to your investments and not exit the market even when you’re in gains. Influencers use bold words and appear more experienced than the larger majority; sometimes they really are. Other times, they are simply putting out their personal opinions and perceptions. This space still remains the most unpredictable investment option.

The main factors guiding your choices should be your personal convictions through detailed research and experience. External suggestions are only resources to help your research process and shouldn’t form the main basis for your decision.

That being said, Dollar Cost Averaging is a brilliant move…when done right. Getting it right isn’t a mathematical issue too. But consider these…

Before buying more of a crashing asset, questioning the reasons for the loss in value might be important to your decision. Getting greedy when others are fearful is unarguably a good move, but sometimes this could also backfire; in reality, this move is always risky. Taking time to make certain considerations before ‘getting greedy’ increases your chances of averting some disasters. Price may dip badly in cases of irregular acts by the team behind the project you are invested in, this always drives the price nuts and could possibly dip to its last point.

If a crash isn’t due to some extreme reason which affects only the project then there are chances of making a recovery. Pulling a recovery depends on two factors; the project making the right moves and the market reacting positively to its move. Recovery cannot happen without these two factors being met satisfactorily.

Taking a good at the team behind the project and their reaction to the dip is surely an important move to make. How the team is reacting to the drop in the value of their project and how they hope to get out of the ditch. In a situation where the team is already ‘exit scammed’ then this might not be possible. ”Almost impossible” is a better way to put it. Well, ‘impossibility’ is an illusion in space. But if a project team is gone for real, recovery is far-fetched.

Alright, there are chances for recovery; but to what extent? Certainly, if a project is determined to keep working harder after a huge price drop, it is poised to pull back some losses, sometimes the pullback is not relative to the drop. For a project which experienced a 70% price drop, making a 70% gain from their current position still keeps them below their former top level. This indicates the extent to which a project needs to go before a complete recovery. Well, sometimes it is easier to go up from the bottom.

While DCA is plausible and you’ve been advised to invest what you can lose; considering some or all of these also goes a long way to reducing your potential losses…at least.

15/01/2023
Cryptocurrency mass adoption: One big lie?

Three big cryptocurrency exchanges pumped literal millions into the super bowl to have their commercials aired during the prestigious event’s commercial breaks. Not so big when you consider the fact that two of these exchanges are buying up the naming rights for prestigious American sports centers. Tezos have partnered with the famous English premier league club — Manchester united; at least we are finally seeing that big ICO money come to life.

With arguably the greatest soccer player ever wearing those training kits with ‘Tezos’ written boldly on them and Lebron James getting buckets at the crypto.com arena, one thing comes to mind; “crypto is taking over the world”. From a small group of nerds working on ‘the future of money’ to millions of people holding cryptocurrencies…for mainly an odd reason, cryptocurrency and blockchain have walked a long path in just twelve (12) years.

Twelve years of struggle for relevance; like a stubborn attention seeker, cryptocurrency has snuck its head in every nuke and cranny. From social media to billboards and television commercials; cryptocurrency marketing strategies are almost as brilliant as the technology itself.

But there is one big lie along the line…

Cryptocurrencies’ are presented as a portable and more convenient means of exchanging value. The biggest perks over traditional alternatives are decentralization and privacy. Speed and transaction cost used to be on the list; not sure if they can be boldly enumerated anymore. It costs over $4 to move Ethereum and about three times more to move smart contract tokens, bitcoin transactions would require similar fees too…

Despite these issues, cryptocurrency’s popularity has been on the climb and isn’t slowing down anytime soon. Bitcoin particularly has seen huge political breakthroughs and has become one of the hottest economic and political topics in the past five years. This relevance isn’t really due to some technological advantages it possesses but mainly due to its tokenomics and mode of operation.

Bitcoin’s distinction over fiat as a store of value is its limited supply. Governments are however reluctant to acknowledge it as a legal tender due to presumed support for illegal financial activities, supply algorithms…and carbon footprint. These reasons are valid, the back and forth on legalization and ban continues. You could anger the Chinese president by simply screaming ‘bitcoin!’.

Bitcoin fits best as a store of value and a payment solution, even though it is currently not very efficient in the latter. Other cryptocurrencies and blockchain projects attempt to solve numerous other problems. Artificial intelligence, oracle solutions, decentralized internet, comedy (yes, comedy!); a number of altcoin projects fit into these categories and more as they attempt to solve more real-world problems and possibly replace existing options. Each of them has earned themselves tons of believers and investors…but again for an odd reason.

When news? “Huge or not”? Investors couldn’t care less about the relevance of any of these projects. Major updates, and (huge) partnerships; regardless of the relevance of these to the actual development of the project, investors fly in with different emotions. Buy the rumor, sell the news; you’ve surely heard that too many times in this space.

If you’re truly here “for the technology”, then you are actually one out of a very scarce few. For a space filled with thousands of very volatile assets and clever marketing strategies, speculators are sure to flock in and tap from the fast-flowing streams.

Getting rich quick is actually the most appealing ability of cryptocurrency.

These adoptions are rarely for the technological advantage cryptocurrencies have over fiat. Even El Salvador has competent plans to redeem their crypto profits in fiat and channel these profits to national development. It’s safe to say that the central American nation didn’t adopt bitcoin because it is a better option to fiat but because in contrast, it is in constant growth in value. This is the same with other institutions adopting blockchain products.

Mainstream celebrities jumping into the NFT trend rarely understand how the technology works and what NFTs really are. Simple process; mint the arts, sell to speculators, and take the loot…in stable coins or actual dollars, lol. How the blockchain actually works and why it is a better option? You can save those long lessons for anyone who cares!

Cryptocurrency adoption comes down to a need for inclusion and the need to be a part of an enriching ecosystem. Very different from the reason presented in our thoughts.

The big lie is, cryptocurrencies are not adopted for technological advantages, and neither is blockchain technology. NFTs are shiny and popular brands are seeing them as a major avenue to improve their financial conditions. Celebrities dishing out NFTs and chasing out in stablecoins and dollars is the most crypto thing you’d ever see.

Companies too are finding ways to include a two trillion dollar opportunity into their purchasing option. The inclusion of crypto payment options into commercial platforms comes as a result of this. Firms looking to expand their purchasing power include the crypto payment as a good marketing strategy. It will be interesting to see the percentage of these merchants that keep a majority of the cryptocurrency they realize in their reserves.

Cryptocurrency is reaching out to people, and speculators. Investors are more dedicated participants. A majority of people putting their money on cryptocurrencies are speculators who envision short-term gains and are keen to leverage the enrichment possibilities of the most volatile assets ever.

Shill me the next altcoin to go 10X! worry less about what they are actually building. It is the normal sequence. Institutional and individual adopters are mainly speculators who consider the technological superiority of cryptocurrency and blockchain. The big lie? It continues.

14/01/2023
The bitcoin revolution starts with you.

Got some bitcoin? Congratulations! You’re a bitcoiner; oh wait…

I got my first few satoshis sometime in early 2017; to be honest, I vaguely knew what it means to own even the tiniest amount of bitcoin. If you wonder how I got them — a faucet. Funny, but those were actually a thing then, and they were real. A whole lot of people got their first ‘tiny’ pieces of bitcoin this way. Unlike the rampant fake faucets littered around all corners of the internet currently, bitcoin faucets were real and did pay those who were curious enough to try them out.

My attempt to transfer my first set of earnings from the faucet to my wallet was the real trigger for my curiosity. A wallet, a key phrase, a private key…these were foreign to a total noob. What bitcoin meant; I hardly knew. The process wasn’t a plain one, but yeah, I’m a fast learner. After successfully paying out my first earnings to my wallet, my interest in blockchain technology grew.

The transfer process was swift, but that was the last good thing about bitcoin. Reading through resources on the internet, bitcoin was more than just a means to move vague numbers around…I learned. The mystery, technology, audacity, and future were all caked into one concept — Bitcoin. Well, blockchain technology and cryptocurrency as a whole.

Alright, feel free to call me ‘dumb,’ but I lost those satoshis I earned from the faucet. I might find the passphrase one day. Don’t worry, it’s just a small amount and won’t make the news. The sats were gone but the interest in the ‘future of money’ continued to grow stronger. I got involved in a number of other cryptocurrency and blockchain projects and bought more bitcoin after the 2018 crash. Again, I lost them in a bitcoin mining scam.

Dummy of the year! Or rather, bitcoiner of the year! That’s a more appropriate term.

Holding some bitcoin only makes you an investor. Waiting patiently for when the price gets to your target and selling off to enrich your pool of fiat. That’s a clever investor right there, not a bitcoiner at best.

Cryptocurrencies are unarguably the best-performing assets over the last decade. The financial advantage they give their holders is unspeakable. A successful cryptocurrency investment could be life-changing. Only a few stocks can boast of similar financial performance.

Behind these financial super stories is an attempt to influence society positively (and otherwise) through a number of interesting concepts and techniques. Financial technology, politics, the internet, distribution of communal power and authority; led by bitcoin and supported by other reputable projects, blockchain technology, and cryptocurrency are finding their way into these important topics.

Investing in bitcoin and other cryptocurrencies only wouldn’t make them relevant outside the investment sphere. The deep interest and extra involvement propel this concept beyond the idea of making money and getting ‘rich’. While owning bitcoin(s) is quite a good start, it is, in fact, a ‘start’.

In a space with many voluntary spaces to fill, what is/are your extra involvement(s)? Well, advising your uncles to dip in a few dollars is nice, but not when you lured them to buy the top though. Regardless, you’re more of a bitcoiner than the investor who locked up a few hundred bitcoins in his wallet.

14/01/2023
Making the most out of your cryptocurrency investment.

Two contrasting messages; “cryptocurrencies are the best-performing assets in the past decade” and “cryptocurrency investments are Risky!”. Same topic, different assertions, both of them correct. While many have made life-changing wealth through cryptocurrency investments, a lot more have a very different story to tell. While I’m not an advocate of cryptocurrency investment as just a ‘money-making’ scheme, losing out on any investment isn’t pleasant regardless.

Came for the technology, stayed for the money…and vice versa. The majority of participants in this space are clearly interested in cryptocurrency investments’ ability to generate mind-blowing returns in a very short period of time. Those 500% gains in 48hrs aren’t something you see anywhere else; in crypto, it happened very frequently. I mean, who wouldn’t want to turn $8,000 into 5 billion dollars in just a few months?

But more frequently than not, investors suffer huge losses on their cryptocurrency investments. This is partly due to the volatility of cryptocurrency prices; investors have a share of the blame anyways. Stepping into a space like this, the first thing to note is the fact that everything is time-bound. Price rises for a while, it also falls for a while…even your influencers’ shill tweets don’t last forever; it takes a dump to get them deleted.

Well, that’s by the way. It’s exciting to be in a space where constant fluctuation is a norm, it’s the volatility that makes the money, and drains it too. Playing safe is a virtue. Going all in could work; but most times, the story is different. Even when you have invested ‘what you can lose’, it’s still unpleasant to see it crash. In this space, crashes are usual…and harsh.

Informed investing could save you a lot.

One popular mistake is ‘chasing pumps’. It’s human nature to chase trends and the fear of missing out is a huge drive. Investors rush to these hot shots with hopes of reaping from the next possible gains.

This works, sometimes. It’s an uncertain market anyways and anything is possible, but being a successful investor hardly comes from jumping on trends. 50% gains, the rush kicks in. Speculators take the space and the project in question gets mentioned everywhere. The trend goes on, enthusiasts buy in with only a little idea of what the project is really about.

TA analyses, hypes from influencers, gains on trading pairs…these things are enough to sweep anyone off their feet. But regardless of how hot the hype blows, clever investors will certainly do their own research before buying in.

In profits, you should take some

Cryptocurrency’s volatility means an investor could make crazy gains in a very short while. 5X, 10X…these are huge returns; in crypto, they are in fact meager returns and happen very often. Well, they could also go either way at the same pace.

Filled with expectations of even crazier gains in the near future, an investor who already made tangible gains is caught in a dilemma. Cryptocurrency markets are fast-moving, double-digit price drops could happen in a blink of an eye, but selling after some ‘little’ gains might be too early. Despite having hit the initial target, things still look promising.

“This could be a life-changing opportunity”…investors usually have these words running through their mind as the project they invested in continue to look healthier and promising, even after making some crazy gains already. Greed sets in — normal human behavior.

To take profits or to continue holding? Any investor would find it hard to decide, especially when you are just a few steps away from hitting your target.

Take a time to consider some conditions that are personal to you. What was your initial target? Over everything, why did you make this investment in the first place? To pay off your rent or to fix some debts? Probably a very different reason, but the level of importance is best known to you.

Imagine waking up to a 30% drop? Jaw-dropping! It could be the other way around. But either way, what are the chances that you will take this event with your head held high? In a situation where you already hit your target but decided to hold on for a little while but things quickly go south. The regrets are huge, but are relative and could vary depending on the investor and the condition.

Nevertheless, it still hurts to see the project you were invested in making crazy gains after you have sold off your investment. The sideways movement constitutes this dilemma.

With this in mind, selling off your bags at once is a bad idea. Selling them in parts at different targets is probably a better approach. Thing is, selling in parts at different targets might mean you get out of the market with less; but if the price continued to go up, you’ll leave the market with more than you would have if you sold at your first target. If the price drops after you sold a part at your first target; you’ll leave with lesser, but the loss is tamed.

Dealing with the ‘Winter’

Every cryptocurrency investor wants the chart to stay green and never red; at least, until they get to their target and sell-off. Only a few realize that the path to their target is filled with trials and tribulations. Now I said that the religious way, lol. If you’re wondering; I’m one of those investors who want the greens to prevail at all times. I mean, who doesn’t? well, only the guy waiting to ‘buy at a discount

Nevertheless; dips are inevitable, regardless. The chart goes red whenever a holder decides to exit the market, partially or completely. The extent of the dip depends on how many people exit the market and how much control they have over the distribution. This is the main reason why whale movements are studied and dreaded. A whale exiting the market could shake it badly, and the market could ‘tank’ depending on the whale’s holdings.

Dips are not only ridiculous, but they are also (very) poisonous. Cryptocurrency dips are sinister; not only are they sudden, but sometimes they are wild. 20% loss within 20 minutes. It happens faster than that most times, everything a cryptocurrency investor dreads. Well, you were warned. This space is more volatile than chemistry lessons. Poor comparison if you ask me.

For intending investors, the dip time is usually the best time to buy. Maybe the coin is just pulling the strings and you know…as the saying goes, ‘it always shines after the dark’. So, if it’s dip time, then it’s buy time…but that’s not always the case.

The normal idea is always to buy the dip and hopes it doesn’t dip further from your purchase price. Moves like this have come out good sometimes, however many times, the current dip point is just the tip of the iceberg as more dip comes after the initial dip and leaves those who bought the initial dip at loss. Ready to buy the dip? Maybe you should give it a little thought and invest some time in making a little research.

It is very important to study the events which resulted in this sudden slash in price. Getting greedy when others are fearful is unarguably a good move, but sometimes this could also backfire, in reality, this move is always risky. Taking time to make certain considerations before ‘getting greedy’ increases your chances of averting some disasters. Price may dip badly in cases of irregular acts by the team behind the project you are invested in, this always drives the price nuts and could possibly dip to its last point, I mean, the team is gone!

Investing in what you can lose doesn’t mean you should actually lose them; it means you should try and make the most out of them. Making the most out of your cryptocurrency investment takes a level of carefulness and bold moves too. Playing safe should be considered at (all) times.

09/01/2023
Sharding: Perfect answer to scalability?

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Blockchain is in fact a powerful data storage technology. Every block carries a set of specialized information about the network; more popularly a record of expenditures and wallet balances. In cases where the blockchain is not just used for cryptocurrency transactions; a block could consist of patient information, supply chain record, details of an inventory…any digital information you could think of.

The set of data on each block consists the block size. Just like your device memory and disks, each of these blocks occupies a space on the blockchain. The blockchain expands in size with every new block added. This works well but breaks down where the blockchain will need to store a huge amount of data accumulating over a very long period of time.

Continuing this way, the blockchain expands to a point where it becomes ‘heavy’. A heavy blockchain comes with certain efficiency issues. Blockchains like this scale poorly.

In computing and data storage, a truly scalable system is able to maintain a flexible size amidst ever-increasing data and is limitless in the amount of data it can carry. Blockchain start-ups face this problem commonly as the struggle to achieve a truly infinite scalable blockchain continues. While many blockchain projects boast of being scalable, they mostly fall short of their ‘claims’. Only a few can boast of reasonable scalability. These claims of Infinite scalability are mostly a marketing jibe used by many ‘Ethereum killers’

If device memories could be expanded without limits and our devices can work well with some high-capacity cryptocurrency nodes running on them, then seeking scalability solutions wouldn’t be a thing. But each transaction on the blockchain generates a lot of data. These generated data need to be stored; accessed and assessed on the blockchain. Memory expansion is also not limitless, ‘heavy’ blockchains are notably sluggish and inefficient. Scalability is desired for high data structures like the blockchain and its node.
Ethereum’s archival nodes currently sit at over five (5) terabytes (5Tb), the actual blockchain size well over a hundred (110) Gigabytes, and each block adds two (2) Megabytes to this already huge figure. Ethereum blockchain according to many ‘will never scale’ and in 2019, Bloomberg reported the Ethereum blockchain is ‘almost full’.

Scalability and memory friendliness are both very appealing features and are vital for mainstream adoption. In recent times, Ethereum gas price has risen very high and the cost of running transactions on the blockchain could get unbearable at some points.

Different projects have sought fixes for poor scalability through different tweaks, all centered on limiting the rate at which the blockchain expands. A very unique one is Sharding

Regardless of how fast a blockchain grows, splitting the blockchain into smaller interconnected units presents pieces of lighter ‘blockchains’ reduces the executable size considerably. This is the main idea behind sharding. As part of the upgrade to Ethereum 2.0, Ethereum developers are planning to adopt this technology to split the Ethereum blockchain into lighter pieces. Zilliqa, Polkadot and NEAR blockchain are already using the sharding technology to make their blockchain lighter and their network faster.

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The Sharding idea is to make a blockchain more efficient by partitioning it into lighter units. These ‘pieces’ of blockchains are known as ‘Shards’. Each shard store different types of data and are independent of other shards. Sharding on Ethereum will split the blockchain into 64 shards. Consider these shards as interconnected units that consist a blockchain.

Blockchain projects using the sharding technique are adopting different strategies to create competent communication between the shards. Zilliqa uses a sharding version known as Partitioned sharding, where shards don’t communicate with each other directly through a central relay. NEAR protocol and Polkadot use State sharding, where shards communicate with each other through a state, or central relay. Ethereum blockchain will use the State sharding technology.

Sharding comes at a cost — security. The fact is, most scalability protocols sacrifice security and decentralization for speed and efficiency. Sharding might be just another example. Splitting the blockchain into shards creates units of independent blockchains with relatively less security. These shards could be attacked individually in an attempt to compromise the blockchain. A successful attack on any of the shards affects the rest of the network.

Despite a lot being done already in developing this concept, blockchain sharding is pretty much an emerging technology pioneered by just a few blockchain projects. There’s a continued attempt to develop it to a more competent level. Few shortcomings currently, but in essence, it has shown a lot of promise as a solution for blockchain scalability. Whether it is a ‘perfect’ answer to scalability or not is a question of how successful these projects working to optimize it become.

09/01/2023
Here’s how you can get back your spent cryptocurrencies!

Alright, I’ll make two guesses; first, you’ve surely spent a whole lot of cryptocurrencies and smart contract tokens and you’d love to have some or all of them back again. Now I don’t just mean transaction fees. I’m personally bad at guessing, but even if I got the first guess wrong; I’m sure about the second. Who wouldn’t want to eat their cake and have it back? Depends on how tasty the cake is!

Well, thanks to some old blockchain tweaks, you could get your tokens back after spending them. And this is not some pro-hack article. Don’t get too excited anyways, this won’t come easy…if possible, at all.

This phenomenon is more properly known as Double spending.

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During blockchain’s earliest days, developers argued the possibility of a user interrupting the network to revert their expenses. This was a possibility. Satoshi’s initial presentation of bitcoin via the bitcoin whitepaper featured plans to prevent double-spending using digital signatures and a peer-to-peer network.

We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work.

Bitcoin whitepaper

Double spending is the possibility to interrupt the normal flow of information on the blockchain to enable a user to regain previously spent cryptocurrencies.

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The blockchain is literally a ‘chain of blocks’. Each new block is linked to the previous block and identified using a unique hash. The latest block represents the current state of the blockchain and carries every recent information including wallet balances. If certain conditions are met, the blockchain could be intercepted and the current block modified or changed completely. This modification can enable someone to reclaim already spent assets.

For someone to double spend, a secret block has to be mined that outpaces the creation of the real blockchain. They would then need to introduce that chain to the network before it caught up — if this happened, then the network would recognize it as the latest set of blocks and add it to the chain. The person that did this could then give themselves back any cryptocurrency they had spent and use it again.

Investopedia

The blockchain design ultimately limits the risk of a double spending attack happening. With the distributed control of the network to the miners, executing a double spend attack becomes hard and nearly impossible…depending on how guarded the network is. Blockchain networks like bitcoin and Ethereum with a large number of miners with varying computing powers will be relatively harder to breach. Each block is screened by miners before they are confirmed and added to the blockchain. Bad blocks are screened out in the process. Sneaking in a secret block will be a tough task on well-decentralized blockchains.

Double spending attacks are much likened to 51% attacks. The attacker will need to control at least 51% of the total computing power of the network to execute a double-spend attack on the network in a proof-of-work blockchain. Similarly, the attacker will need to control over 50% of the staked token supply to execute a double-spend attack on a proof-of-stake blockchain.

Lots of big words thrown around already. You’re probably just here to learn how to retrieve those sold coins and sell them again. Well, that’s simple enough…at least you have an idea of how to go about it now. No jokes though but while the distributed ledger technology makes double-spend attacks hard, there have been reports of attempts to launch this attack on certain blockchains.

09/01/2023
Is Metaverse the End game?

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You think the metaverse is like a ‘new world’? you might not be wrong anyways. You’d wonder why Elon Musk isn’t exploring the space as he does with Mars and these other planets…just like you, I wonder too. The rocket man spends a lot of resources surfing the next destination for humans but seems to ignore the closest planet to earth — the Metaverse.

Coined by Neal Stephenson in his 1992 novel, “Snow Crash,” and popularized by cryptocurrency and blockchain projects; the metaverse is an attempt to (re)create a world outside our world that exists in our world. That must have been tough to read. Well, it’s probably the most straightforward description of the metaverse.

Using a combination of virtual reality and decentralized digital art technologies, tech companies and startups are working to create a world where we exist in simulation and perform certain interactive activities. The only difference is, we are not doing this in ‘real’. Remember those games where you’ll have to select an avatar that represents you? this is something similar but once again it’s not just a game.

In the metaverse, you exist in form of your avatar; probably an NFT, operate in a virtual world, and interact with other avatars controlled by real humans. You’ll be able to attend (virtual) meetings, games, probably concerts, and as well make purchases on the metaverse. If you own land, you can as well build. It is a collaborative effort to create a world outside ours and hopefully reduce real human-to-human interaction…now I added that myself.

With pollution and corruption taking over our world, I guess it’s time to try and exist somewhere else. Somewhere not too far. If you haven’t bought land in decentraland, then you are missing out on the biggest real estate opportunity. Jeff Greene needs to do something real quick.

Anyways, who even cares? You’re probably more concerned about the next metaverse-themed project to do a 100x than you are concerned about what the metaverse really is. I wouldn’t blame you! To be fair, with so much abstraction surrounding the concept at this point, only the hype can be utilized. When it comes to utilizing hypes, the crypto space leads. Projects with ‘meta’ tags and little or no tangible products have been recording multiple gains since the concept took its first leap in the last quarter of 2021.

From the crypto point of view, it looks like just another bubble that will soon settle down; but outside this space, it is a more serious topic for big tech companies who are throwing weights around the concept as the struggle for who delivers best for this sector continues to toughen.

Facebook has re-branded to Meta in an attempt to reflect its latest and biggest diversification. Just like its social media platforms, Meta will leverage virtual reality and NFT technologies to bring people together; this time in a different and rather bizarre way. Sequel to this re-brand and even before it, they have invested so many resources in what they believe will be the next big thing in human existence. Well, they are not alone in this belief…

Microsoft recently acquired American video game company; Activision Blizzard for over 68 billion dollars, citing plans to dive into the metaverse concept. The new acquisition with form a vital part of the company’s efforts to diversify into the ravaging concept. Over the years, other tech giants including Sony, Apple, and search engine platform; Google have continued to work on technologies related to the new (virtual) world.

Outside your ‘pump and dump’ metaverse cryptocurrency world exists a real effort to use technology to transform the world. But is it really worth the effort?

Is Metaverse the end game?

In a time where the need to avoid group activities is being stressed, an avenue to interact in an alternative form as real as possible comes in handy. Working from home has never seemed more professional. The pandemic has steered our attention to an odd way of living — alone. Confined, separated, and existing in privacy; these odd ways of life are becoming the new norm. If we learned anything from the pandemic, it is that humans can survive without being in direct contact, probably.

At the peak of the pandemic, other forms of human communication saw a steep rise in use. Social media platforms and video call services dominated other means of human communication as people were forced to work and communicate from home. Social media platform — Clubhouse grew from obscurity to full-blown popularity and multi-million dollar investments from big tech companies. Metaverse technology would have come in handy in situations like this.

This probably intensified the effort to develop this technology as humans are actually adapting to this way of life. For probably the first time in human history, ‘staying away’ from public activities is medically justified, generally. Companies whose staff comfortably worked from home are exploring this option as an alternative to reporting to the office and working in a group.

Maybe there’s no need for offices? Well, funny, but some people and firms are really considering going completely virtual. If they are completely or even partly successful in doing this, then a Meta world might be looming…the end game.

When the lockdown rules in most countries were reduced and proper social life began to return to normal, there was a resulting sharp decline in the rate at which most social platforms were used. Despite generating millions of dollars for development, Clubhouse again went into relative obscurity. While clubhouse didn’t fail at its technology, the nosedive in the frequency of use was purely due to humans returning to normal life. This event hints at the superiority of the original way of life. People quickly dumped their pandemic-influenced lifestyle.

The metaverse could suffer a similar fate and even with impressive technology, it might only form a minor part of human communication instead of the level of influence we are currently expecting. This however is a speculative opinion.

What do you think about the Metaverse?

09/01/2023