What’s up, guys. This is Tai Zen and I’m over here at Penn Station.
There are millions of people here in New York. It cracks me up that these people are jam-packed into one small area. I come from Texas where we got 120 people that live in every square mile and we’re here at New York where we have 420 people that live in every square mile. It’s packed like a can of sardines in here.
Anyway, in this video, I want to talk about what is a cryptocurrency crowd sale or an ICO. The ICO stands for Initial Coin Offering.
Look at all the people around me. When you’re surrounded by this many people, it is competitive. However, once you get used to all these millions of people running around you, bumping the elbows and things like that, what happens is when you get away into the countryside or into a city where it’s not so jam-packed, you almost suffer anxiety attacks because there’s nobody around you.
That’s the one downside of working and living in New York City. When you get away from all of this, it is almost a sense of anxiety. Where am I at? I think I’m going the wrong way.
Anyways guys, what I wanted to say is I’m at Penn Station. If you look behind me where the flags are at right there, that’s a Madison Square Garden.
Back to topic, I just want to share with you what is an ICO or a cryptocurrency crowd sale.
Somebody was in trouble. That person is about to get beat up or something. Just want to make sure I am not the one that’s about to get beat up guys.
Anyway, an ICO or a crowd sale is where a cryptocurrency is trying to raise money so that they can finance their project. That amount of money will be used to develop team behind it such as engineers, software developers who are coding the software, marketing team who can market their products and services so that people will know what their cryptocurrency is about.
Normally, if it was a stock or business or company, they would run out and do an IPO of an Initial Public Offering. However, in the world of cryptocurrency, they don’t do an Initial Public Offering because there are too many laws and regulations that will prevent them from doing that.
Therefore, what they’ll do is they will issue tokens of their cryptocurrency because they are tokens, not shares of a company. Accordingly, it is not considered a financial product so that they don’t have to deal with the regular rules the laws and the regulations of America in Europe. That’s the advantage of the cryptocurrencies when comparing ICO and IPO.
When they do an ICO or a crowd sale, they are looking to raise funds that they can take to develop their software project. The risk that’s involved when you’re doing this type of fund-raising is that you don’t know if they’re actually going to take the money and do it or not.
Usually, the legitimate software team will put out a test software or an extremely beta version of it so that people can already test it and show that it is worthwhile, plus that they’re not bullshitting around with their software.
In the case of Lisk.io, they already had the software from another cryptocurrency called Cryptic, so they did not need to prove it. They just had to do marketing and other stuff. With them, it’s not so much a risk because the software is already produced.
One thing that’s funny, guys. They have a monopoly here in New York even though there are around 20 million people that live here in the city, which is when you run on the streets, you only see 3 food carts that are available: the roasted peanuts guy, the pretzels guy, and the Mediterranean shish kebab guys.
I guess the Mafia or the mob having a lockdown on it, so they don’t allow any other food sold here. There’s no Asian food court. There’s no Jamaican food court. There’s none of that stuff. Just be aware of that.
I got Madison Square Garden behind me right there.
I hope that this video helps you understand what the crowd sale or an ICO is. It also helps you to know the risk that’s involved is that when you give money to these guys, do your due diligence. We try to do our due diligence to make sure that the cryptocurrencies that we invest in are legit.
When we say legit, we actually don’t know until they put the software out onto the market. However, what we do know is that you can do research on the people and the teams that are involved. That’s one of the ways you can help reduce your risk.
I’m freezing my ass off out here making this video for you. I’m going to finish this video. I’ll talk to you in a different video once I get inside because it is freaking cold out here New York.
Look at this, I got the tour bus and they’re staring me down like I’m crazy or something. They’re just missing out on the cryptocurrency movement. Poor souls.
Anyway, you haven’t missed out because I’m sharing it with you. Thanks for watching this video. If you like it, give me a thumbs up. If you don’t, give me a thumbs down and I’ll see you guys in the next video.