Ten years ago a mysterious figure known as Satoshi Nakamoto invented Bitcoin as an experiment in monetary theory, a payment system and store of value. Probably without knowing he thereby started a revolution of how we use money.
The rise of cryptocurrencies
Seven years later the second of the currently two largest cryptocurrencies, Ether, was launched. In contrast to Bitcoin, Ether can integrate Smart Contracts on its blockchain, making it useful as a full-service platform onto which a variety of applications can be built.
Cryptocurrencies rely on the blockchain, a cryptographic system of proofs forming an immutable transaction history by spreading the ledger across thousands of participating machines. Unlike fiat currencies they are not being state backed, instead the blockchain is forming the basis for confidence in its fidelity.
This has taken some time to be accepted, but over the past years, people have realised the revolutionary potential of blockchain. Cryptocurrencies are global and facilitate international trades. They allow everyone to operate financially without the participation of banks. Due to the blockchain technology they offer quick and easy payments, fast settlements, lower fees, protect your identity and are highly secured. Cryptocurrencies could be the technological path of the future.
In 2017 the price of cryptocurrencies skyrocketed and bitcoin as well as Ether multiplied their value. In fact, bitcoin had recorded the sharpest price increase of any asset in history.
At this time some critics stated that the price inflation could be a sign of a bubble.
But with 8 billion people on the planet and only about 20 million Cryptowallets, there seems to be a lot more room to grow. At the moment only 0.1 percent of the world trades Crypto and experts expected that within the next five to ten years this proportion will increase to at least 3 or 5 percent. With a trading volume as high as this, it is almost impossible for Cryptomarket not to grow further.
Initial Coin Offerings
With the rise of the cryptocurrencies another phenomenon appeared: Initial Coin offerings (ICOs, Crowdsales). A Crowdsale is used by companies to raise capital for certain projects. They therefore launch their own cryptocurrencies, which are referred to as Tokens. In the course of a Crowdsale a certain percentage of the Tokens is sold in exchange for legal tender or other cryptocurrencies. Crowdsales offer crucial advantages for both companies and investors and propagate wildly. In 2017 alone approximately 210 Crowdsales were launched.
The risk of Scams
Yet, despite all the potential and benefits Crowdsales have to offer, there still is severe problem to them. That is, that not all of the published Crowdsales are legitimate. Some of them are just Scam, fraudulent Crowdsale campaigns, whose sole purpose it is to collect as much money as possible in the shortest possible time and then the initiators disappear.
One large example, called OneCoin, collected as much as 360 million euros before German regulators began investigating them for fraud and shut down their operation.
According to an Ernst & Young, as much as 10 percent of the $3.7 billion raised by ICOs worldwide has been stolen.
How is that even possible? Such cases of fraud can arise, since there is no standard of how a Crowdsale has to be carried out and no inspection body examining a Crowdsale campaign. Instead investors have to be experts in finding and interpreting information about the company and the project in order to evaluate its trustworthiness and prospects.
UnitedCrowd: Effective Scam Protection
UnitedCrowd tackles this problem. We offers an all-in-one Tokenization service enabling every company to launch its own Crowdsale. At the same time UnitedCrowd effectively protects investors against scam.
This is because before UnitedCrowd accepts any tokenization request, the company and the project are extensively reviewed by experts using fixed parameters, according to highest standards and with German thoroughness .Only those, who pass this intern UnitedCrowd QualityCheck will get the opportunity to receive our professional tokenization.
Our rating judgement is independent, based on facts and reviewable: All decision will be revised by an independent board of democratically elected holders of UnitedCrowd Tokens. Investors can rely on all crowdsales implemented by UnitedCrowd to be 100% scam-free and lucrative. With its name, UnitedCrowd stands for high security standards and superior tokenization service.