Karatbank Coin KBC – Gold Backed Cryptocurrency – What is an ICO?

hello I'm Harold site CEO of karatbars international and founder of carpe Carol Bank and recently creator of the carat bank wine you may have heared for about this in the last couple of days I think though in the next three weeks I would like to give you a brief lock inside the basic and the goal of my current activity today let us start with a very beginning what is an ICO here is an excellent summary from two of the most expert speakers in the field of cryptocurrency Sarah silver stain from Business Insider and host of the cryptocurrency show the bit and Michael Matsunaga legendary speaker ico advisor investor and founder let us see what they have to say so I really want to get every learn everything I can from you about I cos it seems to be a lot going on right now generally speaking what is an ICO ICO is kind of a funnelling named thing which is the initial coin offering so essentially what's happening as tokens are being created and they're being sold to the public so it's and what and what are you getting so you're getting a coin and and what is that yeah so what you're getting is you're getting a cryptographic token that you store in a piece of wallet software and you know ultimately the value is determined by the value of the economy that's being created by this entity so it's not like when you get an IPO you don't have a stake in whatever is behind it right yeah one of the big concerns that people have about coins and cryptographic tokens is that they don't actually confer legal rights in most cases so that's pretty interesting and potentially concerning for people who hold them so kind of like the Bitcoin is the value of the Bitcoin is what keeps the Bitcoin blockchain going right look so the ICO is the poins associated with those new I SEOs are are spurring new companies and if that company continues to grow then maybe that coin will that's correct so there's really two classes of ICO token one of them is asset backed securities so asset backed basically is literally what it means which is there's real estate back there or there's some kind of fundamental pegged value of that token so it represents a physical or virtual goods some kind of asset the other class is a utility token and that's basically used to buy goods and services in some kind of like micro economy and how many of these are there well so we're seeing about 30 new icos launching per day year-to-date we've seen about three billion dollars go into the ICO market so we're seeing companies raising as much as 200 million USD per ICO and what's interesting is that they're raising it in Bitcoin and ether the value of which also continues to rise so we actually in one case for example AOS has probably estimated about 700 million USD that's been raised as a function of the increase in the price of Bitcoin in either and is that one of the one of the things that's causing Bitcoin to go up is that you in order to buy I SEOs you have to use Bitcoin so all this ICO activity is actually increasing the price so the most common platform is actually the etherium blockchain so ether purchasing for the purpose of transferring into ICO is definitely an economic driver for that but I would say that there are actually much larger geopolitical fundamentals with respect to the price of Bitcoin itself and we are seeing a large movement with respect to the fiat currency to Bitcoin interface to crypto interface so we're seeing a lot of net new hedge funds there's over a hundred crypto hedge funds that have emerged some of which I know a for that are at the 500 million u.s. dollar size so they're fairly sizable crypto to fiat to crypto interfaces and one of the funds that you're invested in is an IC o—- only fund right that's correct I am a limited partner with Pantera capital and that's a 100 million US dollar ICO only fund so it invests exclusively in tokens not in traditional venture equity so if you missed out on the Bitcoin rally or you think maybe you did should everyone just go into these I cos it sounds like a really exciting thing that's happening well I think I'd like to be a little more cautionary about this one of the things that's happened is it's such a popular fundraising vehicle because it has genetic roots with crowdfunding and so one of the problems is is that everybody has like a cousin that is doing an ICO and that is actually a little scary I would probably stay away from most of these instruments what's happening now is that more and more kind of whale class investors are dilligence instrumentalism so there's fewer and fewer retail investors that are randomly throwing Kryptos at icos which i think is a healthy trend because i do think these are very complex to analyze and understanding the fundamental value of a specific ICO is I think the job of people who do that all day long as professionals and just so that to help us understand that's what we go out and try to do diligence ourselves but what are the types of flags that you would look for as far as like as ICO that doesn't make sense this company shouldn't be raising money this way well to me I'm really looking for fundamental connection to the technology underlying which is blockchain so to describe blockchain very succinctly it's a really really slow database and the only reason you would want to use blockchain is if you didn't trust anyone right and what's the situation like that bitcoin is a perfect situation because you shouldn't trust anyone with your money and so that's what that blockchain is doing right but you know to underscore it like it's a very slow database right so if you want a faster database you just have to find a situation where someone can be trusted to run it and then so to me when I analyze I see oh I'm really looking or kind of fundamental uses of the technology whether it's relevant or not I feel like that's a that's a key so this general idea of like oh the blockchain can revolutionize everything and everything can be decentralized doesn't necessarily make sense no although it is one of my investment thesis points that we are at a point of peak centralization and so it is the case that the pendulum in many cases can swing towards decentralization in a lot of infrastructures and that there are externalities which means that there are costs that people are bearing that they didn't agree to bear in many many different kinds of systems did you all get what Micah said about the two classes of ICO tokens one of them is assets backed the other is an tilty token used to buy goods and services each has benefits and guess what the CalPERS coin combines both benefits as you can see on this chart our coin is based on three pillars real gold as an assets packing strong little means of payment the until the token and it's con depart in the everyday world cash gold get it get it and pay with it it's a cycle of security everything leads back to gold our carrot bank coin is absolutely unique you know have the chance to buy this token from our web site www.kpbs.org/news/evening edition cent discount and one cent per tokens how you can get started what you should keep in mind and how it works in details do not miss our next Facebook livestream thank you very much for our time for your time see you soon

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