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For Fork’s Sake !!

So the fork has come and gone and not too much seems to be disastrous. It’s early yet of course but as at the time of writing the BTC /USD price is $3450 per Bitcoin. That’s improved around 305% since August 1st.

What has particularly struck me recently is the emphasis that Initial Coin Offerings (ICOs- see below) have placed on “community”.

Back in the day, the whole story about domains (remember them?) was building a community, grabbing eyeballs and retaining them. And guess what? The same applies today to coin offerings. If memory serves, at one point eyeballs were worth around £1.25 each when sold to a third party. That rapidly grew to around £10, and just as promptly dropped back again. But the point is that this has carried over into Blockchain offerings. Somebody recently with 65,000 of a community, was valued at £10million. That’s £153 per skull. Granted that particular company expected to take the £2million it was raising and grow the community to 250,000. No turnover worth talking about and massive losses of course, but hey JUST LIKE WEBSITES AND DOMAINS!! If their next round of financing is done at anything like the present value, we’ll be talking £38million plus. For virtually nothing except 250,000 email addresses.

Plus ca change.

Perhaps a few words on ICOs:

I.C.O. means Initial Coin Offering as I have said. It is akin to an I.P.O. (Initial Public Offering) which have being going on for centuries – albeit perhaps under a different name.

An I.P.O. generally is done for a business that requires more funding, and the funds raised are used to achieve expansion and growing profits.

An I.C.O. generally raises funds for a start-up or early stage business, and typically in the Fintech business area. The coins are created and reside on a blockchain, securely, and properly registered to their owners as they pay for them. The funds raised are then used for creating and expanding the ecosystem ( for which read community) that the coin has been created for.

ICOs have raised nearly $1.5billion in the USA in the last year. Typically, the prices rise strongly after debut to an average of 1800% above the initial price. Even taking the lowest 10% would mean an average rise above 400%. So if you can achieve an ICO you are on the fast track to achieving your community, because everyone who subscribes is a supporter and becomes a member of your community.

When Scotcoin moves to a fully permissioned blockchain, we will be having an ICO. Existing Scotcoin holders will be very well rewarded for their support and belief, and we will be able to expand our community massively. It will be a worthwhile and exciting time.

-T Melville

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