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The terms used in ICO

ICO is a specific niche which is characterized by special designation. They can cause confusion among ordinary people. Let's examine in detail the clarification of basic concepts.

Pre-ICO or Pre-Sale. It represents an investment attraction even before ICO. Pre-Sale has low cost tokens. Development of smart contracts for similar purposes is necessary to startup can collect additional funds. This will help to hold the major part of ICO without any problems. Investors have the opportunity to take advantage of favorable discounts and bonuses. It is noteworthy that ICO is advertised is not as active as the monetary offer. Investors view this stage, as a special benefit for further development of their business. They have the opportunity to purchase tokens at a minimal cost, in the future, sell them much more expensive. This short-term investment brings many benefits.

CrowdSale. Creating smart contract at this stage is necessary in order to properly and profitably sell coins within ICO. Such a method is used by start-ups in order to increase the level of trust to your project. Investors often have negative connotations as for ICO, since some projects are not fair. Tokens are sold at the internal level by using the startup or crypto currency.

Bounty. This is a special reward that ICO creators offer for certain services. Startup gives people the tokens instead they invest in development of the project. This may be an adaptation, proofreading documentation, creating of smart contract, advertising translation into different languages, and so on. Registration in ICO is accompanied by an obligatory issuance of special bounty. Solving technical problems, referrals, programming ... Contribution to ICO development brings a certain amount of tokens to each participant.

White Paper. It is a unique detailed description of ICO. It reveals the basic gist of the idea, describes its innovation, perspectives, the relevance in the modern world. Also, there describes methods to realize a certain objective. Niche and other important points that can attract investor's interest are considered obligatory. To draw up a white paper, it is necessary to hire independent consultants. This is a brochure that can help the interested people to understand the essence of any project.

DAO. This is writing of smart contracts as a decentralized network, which allows maintaining ICO. Etherium system became the basis for the establishment of contracts. The database has been created as a platform where members received the opportunity to select suitable projects to invest money in them. But from 150 000 000 $ get by platform, 50 000 000 $ was stolen because of wrong source code. As a result, Etherium smart contracts were developed, which is simply impossible to hack.

Roadmap (map of development). This is a special timeline that shows how the project develops. The beginning point is the announcement of ideas and collection of investments. Due to this map you can track milestones and plan new ones.

Jurisdiction. Any ICO is accompanied with the jurisdiction to which it is bound. This is a country where ICO creator is registered. Such projects involve tax obligations and accountability. That is why it is worth to create a smart contract for ICO in order to such processes did not cause problems and difficulties.

Scum. This project is created by fraudsters. Its main purpose is to finance through ICO without development ideas in the future. This method of enrichment is for the dishonest person. For example, Ebitz program created by fraudsters allowed them to get rich on 240 Bitcoins.
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