This is my entry for the sponsored writing contest organized by @monajam. You can find the contest here
In a fast paced industry as the crypto industry, there is a daily introduction of numerous new tokens into the cryptocurrency space, promising various solutions to the needs and challenges of life. To acquire the capital required to fulfil these promised solutions, these coins employ a crowdfunding tool called an ICO.
An ICO (Initial Coin Offering) is a mechanism whereby cryptocurrency startups raise funds by selling their tokens to investors.
Unfortunately, with this opportunity for profit making, comes numerous opportunities for scams. A recent study prepared by Statis Group, an ICO advisory firm, revealed that more than 80 percent of initial coin offering (ICOs) conducted in 2017 were identified as scams.Source
These scams have both directly and indirectly affected the cryptocurrency space, causing 3 major problems.
These 3 major problems in the cryptocurrency investment space are as follows:
- Problems Investors face
When angel investors want to invest in a business or startup company, the amount of in-depth research conducted, years of experience, and so on, determine to a large extent the success of the investment.
Rather than undertaking the required research before investing their funds, most investors do guess works and depend on good ratings online, which in themselves are mostly paid fake ratings.
- Problems genuine ICOs face
Some of the ICOs that are truly genuine, with a highly skilled and knowledgeable team, and built upon a working concept, don’t have as much funds for publicity as the scams, and hence are not able to get to much of the public, hence getting little funding.
- Problems the crypto market faces
By virtue of the tremendous increase in the amount of scams currently in the system, investors have been made to shy away from investing in the system. This in turn has led to reduced amount of cash inflow into the system, hence reducing the liquidity of the crypto currency market.
Having stated all these challenges the current market is experiencing, it is pertinent to state that a new way of doing things is highly needed.
Vertex is an ecosystem that is revolutionizing the way investors partake in ICOs, by giving investors the opportunity to participate in ICOs that have been properly vetted and have a high potential to be successful, while also giving well vetted ICOs the necessary funding and publicity they need to take their company to greater heights.
From this definition, we can see that the Vertex platform will benefit the investors, the ICO companies, and the crypto market at large as would be shown below.
Vertex provides these benefits, and hence provides solutions to the current cryptocurrency market challenges by means of three pillars: ICO vetting process, the platform, and the VTEX token Source
This involves all the processes involved in trying to sift the chaff from the wheat with respect to ICO funding. This vetting process is founded upon years of experience in venture-capital investment and cryptocurrency trading.
This vetting process benefits investors in that investors no longer have to be scared of losing their funds to scam ICOs or worry about ICOs to invest in that have a high chance of succeeding.
Also, ICOs that have been successfully vetted by the Vertex team, get the benefit of receiving direct investment from the Vertex team, in addition to reaching a wide range of Vertex users who have already undergone the KYC procedure, hence bringing in additional investment.
Finally, the cryptocurrency market gets the benefit of increased liquidity, since more resources will be pumped into the system, primarily because the vetting process makes investors confident that their investments will not be stolen away.
This is the most important part of the Vertex ecosystem. It is the meeting ground for the investor and vetted ICO.
The Vertex platform is a decentralized platform that enables users access all that the Vertex ecosystem has to offer.
The platform is designed in such a way that data of investors are given high level security through cryptography, investors are also allowed to keep their funds in their own wallets so that they can control its movements, and finally, ICOs have their tokens on the platform held in cold storages.
The numerous benefits listed above that the Vertex platform and ICO vetting provides, can only be accessed through the Vertex token.
The Vertex team buys tokens of vetted ICOs during public sales, and then makes them available on the Vertex platform, to be purchased by registered investors through their Vertex token.
This means that investors will have the advantage of purchasing ICO tokens even after they have ended, and also purchasing them at a static price, giving no preferential treatment to anyone.
The users have to visit the Vertex website and then register. Then they have to complete a one-time KYC procedure.
For the ICO companies, they have to submit their intending ICO and its details to the Vertex team for vetting. The moment the ICO has been vetted and confirmed as genuine and profitable, the Vertex team purchases the ICO tokens during the public sales with funds provided by its personal angel investors.
These ICO tokens are then made available on the Vertex platform to be accessible to registered investors.
For investors, they have to purchase VTEX token in exchange for Bitcoin and Ethereum. Through these VTEX tokens, investors can purchase tokens of vetted ICOs after their public sales are over.
- Application
I have been around the cryptocurrency market since 2016, so I have some knowledge on cryptocurrencies. But Prior to Vertex I have not participated in any ICO because of my fear of scams.
This has come with some consequences in that I have lost out on some really great projects, the most recent being Enumivo coin which had its ICO in 2018.
With the help of Vertex, I will not need to worry about how safe and viable an ICO will be.
- Use case
I want to participate in a particular ICO that has already closed. I make some enquiries online and I find out about Vertex. I then head to register on the Vertex website.
Luckily I find the token on the Vertex site. I purchase some VTEX tokens with my Bitcoin, and then use the VTEX tokens to buy the tokens of the ICO.
After some time, my tokens increase in value, and I make profits.
From all we have said, we have seen that the cryptocurrency market has some challenges that have prevented investors from coming into the industry. Vertex is coming into the market to provide solutions to these challenges, thereby paving a new way for the crypto industry at large.
NOTE: Unless otherwise stated, images were gotten from www.google.com (google images)
If you need any clarification on any issue with regards to Vertex, please make sure to drop your questions in the comment section, and I will promptly attend to it.
For more information,
You can also participate in their ongoing airdrop Here
Vertex website
Vertex whitepaper
Vertex Faceboook
Vertex Twitter