The rise of ICOs – HomeBlockCoin study

Dear Partners,

have you ever heard about Bitconnect? It’s a high yield investment program with its own crypto currency, the BCC. It’s listed in the Top 20 on CoinMarketCap.

The ICO (Initial Coin Offering) of BCC (Bitconnect Coin) took place in December 2016, so a year ago. Bitconnect customers had the opportunity to buy this coin and do lending, stacking or mining with it. The value of BCC grew from 0,16 USD to 297 USD in one year. So if you bought 1.000 BCC at 0,16 USD, you would have made 297.000 USD out of 160 USD. Too good to be true? Well, it’s a true story. But what is the future of BCC?

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The future of BCC highly depends on the BCC Exchange, so basically the Bitconnect platform. If it is gone, the BCC will be gone too.

Meanwhile, projects like Bitconnect pop up on a weekly basis. All of them trying to repeat the success story of Bitconnect.

It’s hard to keep tracking of everything that is going on, on the ICO Lending market. ICOReview.site does a good job in reviewing and rating of the major ICOs.

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It has a smart rating system with different criteria. If you want to be up to date, join the Telegram channel. You will find the link top of the page.

Every new coin is supposed to have a white paper. This documents explains the technical characteristics of the coin, its mission and vision. It also explains the unique selling proposition of the coin. A typical white paper would look like the one from Bitcoin: https://bitcoin.org/bitcoin.pdf. Lots of technical details that hardly anyone can understand unless you have a PHD in science.

The white paper of a “Lending coin” reads like a marketing plan. The only technical characteristics would be shamelessly stolen from Bitcoin. It’s decentralized, cannot be falsified etc. One good example of such a white paper is HomeBlockCoin (HBC): https://homeblockcoin.com/downloads/whitepaper-homeblockcoin-2017-10-31.pdf. To be fair, it has one unique selling proposition: you can mine it from home and hence the name.

This white paper would rather have a commercial touch than a technical. Let me use HomeBlockCoin as an example to explain the profit opportunities offered by such a coin.

The first challenge will be to get the coins. HomeBlockCoin would issue 250.000 coins a day in 1 to 5 rounds:

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The price would grow every day. The started off with 1,25 USD. Today, on the 17th November 2017 it’s at 2,25 USD. They would issue the coins randomly during a specific timeframe. You have to follow their Telegram or Twitter to get a notification about a new round. Why don’t they announce date and time in advance? Quite simple. It will create too much traffic at once and will overload the website. Which happens with the random approach too. It’s nearly impossible to log in when a round starts. You will hate HBC until you get a few coins. That’s how I felt. And this is probably how those guy feel:

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An army of Vietnamese HBC hunters.

This way, they create artificial demand which causes the price of the coin to go up. This is their projection for 2020:

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Will it ever happen? No one can tell. Will HBC last that long anyway? Noe one can tell.

So what do you do with the coins if a manage to get some?

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You can trade them, so basically buy and sell. You can also do lending and get daily profits from that.

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Daily profits are variable, but the monthly profit is capped at 48%. The more you invest, the more profit you get. So your daily profit can be 0,5%, 1% or 1,5%. And if you invest e.g. more than 1.000 USD, you get 0,15% on top. The higher your investment, the shorter the investment period, the lower the risk. Your principal will be returned after the investment period has expired.

That compensation plan is pretty much a copy of Bitconnect. If you start lending prior to the official start of lending, you get even higher profits. That is called “Pre-Lending”.

All profits are fixed in USD, meaning that you only profit from interests, not from the rise of HBC. If you want to profit from growing HBC rates, you will be better off doing staking.

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So you basically just keep you HBC on a special wallet that you can download. Your profits are a lot lower than with lending. However, if you speculate that HBC will grow just like BCC did, you better do staking.

The next earning opportunity is mining. HomeBlockCoin is carrying the word “home” because you can mine the coin at home. All you need is a miner with a X11 algorithm.

Last but not least, you can earn with the affiliate system of HomeBlockCoin. Inviting partners to join HBC can really pay off. HomeBlockChain offers a stand 7 level affiliate system.

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You get 8% of all HBC purchased by your direct partners. And what makes it really attractive for promoters is the residual bonus. That is a percentage from profits of your partners. That means, you get constant commissions from your partner’s earnings.

Well, that’s all I know about HomeBlockCoin so far. Why did I pick HBC to explain ICO Lendings? It simply had the best documentation. It also tries to repeat the success story of Bitconnect. A copy is never as good as the original? Not always.

I would highly recommend to do a proper diversification when investing in ICOs. ICOs can fail, especially if they are connected to high yield investments. My top 3 ICO lending would be:

  1. Ucoin Cash
  2. HomeBlockCoin
  3. Crypto X Changer

Please do your own research before you invest. ICOReview.site is certainly a good source. You’ll be better off distributing your investment in more than three ICOs. The more projects you pick, the higher the chance that you find the holly grail (like Bitconnect).

Before investing, please keep in mind: High profits, high risks. Never invest money, you cannot afford losing.

Best regards,

Limbix

 

 

 

 

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