Welcome to Crypto Birds Platform's section for newcomers. Here, we aim to make the most important concepts clearer to those who have just discovered this sector, highlighting the differences between our ICO and a classic investment in another financial product.
“ICO” is the acronym for “Initial Coin Offering”. It is a term that comes from the first cryptocurrency projects, which from the onset created a percentage of cryptocurrencies (Pre-mined) that were sold to finance their foundation or company, which would develop the project over the following years. An example of this funding model is Ethereum's ICO, whose founding team sold on the 22nd of July 2014 50,000,000 ETH at $0.311 each, raising $15,571,000 in just a few days.
Currently, this term is applied to all types of blockchain asset sales, not just cryptocurrencies, but also tokens, whatever their typology. Although there are more accurate terms to describe them now, such as STO “Security Token Offering”, ICO is the term widely used to encompass all those types of offerings.
By participating in an ICO, you are purchasing blockchain assets that you must keep in custody. Those assets may provide those who keep them a revenue pay-out by the company that issues them, or they may be used in a specific environment, with a demand that will generate purchasing pressure in the market.
In 2017, this financing model raised $6,226,689,449 distributed amongst 876 ICOs, an amount surpassed in 2018. At the end of November last year, a total of $7,541,483,882 had been raised, distributed amongst 1224 ICOs, according to data from ICOdata.io.
At the moment, ICO regulation varies between countries. In Spain, the Spanish Securities Market Commission (CNMV) has competences on their regulation. That is why, on the 20th of September 2018, it published in its Fintech portal the initial actions criteria that the CNMV is applying to ICOs, a document that we recommend you to read.
Crypto Birds is committed to strictly abiding by the Spanish legislation and our ICO will follow the CNMV's criteria rigorously.
From an operational perspective, there are no differences between managing the XCB token that we sell in the ICO and cryptocurrencies.
Cryptocurrencies such as Bitcoin or Litecoin are the incentive so that the networks that support them (Blockchain) operate correctly and securely. Those cryptocurrencies are issued automatically by the network and do not depend on any specific person to issue more or less.
Contrary to that, XCB is a kind of “token” that a third party, in this case Crypto Birds, creates in a blockchain that supports this type of issuances (in this case Ethereum, although it could change in the future).
Despite having different names, operationally there are no differences between managing a token and a cryptocurrency, both are freely transferable or exchangeable assets under the exclusive custody of the user.
Crypto Birds is the one creating and issuing the XCB token, but once the token is released, it has no control over it. In this aspect, it is the same as a cryptocurrency. No one can block, control or reverse an XCB token transfer between two parties, nor is it possible to counterfeit XCB token or steal it without access to the private keys that enable you to use it.
Crypto Birds aims to become the leading platform on ICO information worldwide, using a different approach to those that currently exist. The staff of a specific website will not be the one selecting projects and looking for information on them (or directly selling space to projects), rather, it will be the platform's users who will enter, assess and fine-tune the information that potential investors need to know.
We believe that only an incentivised community can solve the problems of lack of information and bad practices that currently exist in the world of ICOs, but for that community to work, they need a tool. This tool will be Crypto Birds Platform.
Once the platform is launched, users will be able to collaborate in it in multiple ways, by entering information or new ICOs, by voting or assessing their activity, by making forecasts or by scoring several aspects of ICOs. There will be an incentives program related to XCB tokens, aimed at promoting quality contributions.
The XCB token that will be sold in the ICO will be the currency used for certain services in the platform. The ability to make forecasts, to advertise yourself transparently and to participate in contests and promotions, will depend on using or freezing specific amounts of XCB.
By participating in Crypto Birds' ICO, you are buying rights to receive XCB tokens. Those tokens are in the Ethereum platform and will be transferred when they are released to the address you provided at the time of purchase. It is extremely important that you have control over that address.
Afterwards, you will be able to participate with those tokens in Crypto Birds Platform in order to access several services, competitions and promotions, or you could send them to a market (exchange) that accepts trading with them.
When comparing XCB tokens with any other financial product, there are two main differences:
To participate in our ICO during the Pre-ICO phase in which we currently are, you can invest directly in EUROS via bank transfer. You can also invest with Ethereum and Bitcoin. You only need to fill in the Invest form and you will receive an e-mail with the steps to follow. Our technical support team will guide you throughout the whole process in order to solve any queries or issues.
In order to participate in an ICO of Ethereum token, you normally need to invest in that same currency, Ethereum, and so you must purchase Ethereum in an exchange that allows you to send fiat money (euro, dollars, etc.), such as Kraken, Bitstamp or Coinbase.
For instance, if you wish to invest €500 in our project during the ICO phase (in the current phase it is easier, as explained in the previous paragraph), you must first transform those €500 into Ethereum (ETH) in an exchange. After that, you must create an Ethereum wallet (as explained in the previous section) and send those ETH to your wallet, then you are ready to invest.
We are working to simplify this process so that you can participate in our ICO not only with ETH, but also with other cryptocurrencies, and even in Euros, as is the case during the Pre ICO phase, open until the 28th of May 2019.
Please visit the ICO section on our homepage if you wish to invest in our project in this phase. In this section we will also publish dates and processes for the second phase. If you wish to be updated without having to visit our website, subscribe to our newsletter.
The most important document you must read is our information leaflet, which we call Whitepaper. There, you will find all the information there is about our project and us. In order to have a general idea, you can start by reading our FAQ, an easier read.
We also have an online demo. This is a site with limited features, but real content, that aims to convey the Look & Feel of our final project.