Tracto Venture Network (TVN) is a peer-to-peer network marketing company from Sydney, Australia; offering early adopters and cryptocurrency enthusiast to be a part of Tracto coin Initial Coin Offering (ICO) drive.
TVN members are rewarded bonuses in coins when they help make the community bigger. Members will also be rewarded from its crowd pool mining program, where coins will be rewarded to its members according to their share in the stake pool within its system.
What is an ICO?
Today, a growing number of companies and individuals or groups are developing cryptocurrency projects who are in need of funding. To do so, many of these projects are offering its new coins in exchange of money to investors. This process is known as ICO, Initial Coin Offering. It also works as an initial distribution model for their coins, especially those with proof of stake consensus algorithms.
ICO participants are invested in the success of the profit potential and can generate awareness in the broader community. They also provide early liquidity for the coins when they start trading. They are also driven by the profit potential if the project and the coins are worth more than the ICO price.
One of the earliest ICO adopters was for a cryptocurrency project, Mastercoin. It was crowdfunded on Bitcointalk forums. Mastercoin is a meta-protocol on top of the Bitcoin blockchain that provides additional features that Bitcoin doesn’t. The campaign took place mid-2013. Mastercoin (MSC) raised over 5000 Bitcoin (BTC) at the rate of 100 MSC per BTC.
Today, Ethereum remains one of the largest ICOs to date, raising over $18 million with a current market capitalization of around $ 1 billion.
Are ICOs like IPOs?
ICOs are often compared to crowdfunding and IPOs. Some notable similarities consisting that both of them are used to sell a stake and raise money and both have investors who see the potential and risk of their capital in order to make a prospective profit. However, the differences are that ICOs is mostly supported by early enthusiasts with having a financial stake in the coin project and not the company shares.
Progression of ICOs
The cryptocurrency community has adopted self-governing practises with respect to ICOs. Some projects use multi-signatures wallet to enhance safety when some are still using a single public Bitcoin address to raise funds, where it may be bad for privacy, but good for a community to audit the health of the ICO and the money raised.
Several ICOs use existing cryptocurrency protocols to create their coins on top of them. This helps simplify the coin-creation process. The most notable such protocols today include NXT, Counterparty, Bitshares, and Mastercoin. Waves, was developed through an ICO (raising over $16 million) is also developing a token platform.
Some well-known cryptocurrencies that were developed through an ICO include: NXT, Mastercoin, Bitshares, Ethereum, Maidsafecoin, NEM, Synereo, Factom, DigixDAO, Lisk, and Waves.