The good, the bad and the ugly around launching and running a successful ICO

[Music] [Music] hello moderating is my turn to resent so thank you Pete again that was very interesting I'm gonna talk about kyc know your crypto and ICO is good bad the ugly as we did one I'll see it I'm gonna start off here didn't say some of this I'm going to talk a bit about crypto so coin yeah what is it good for so I think most people know this Bitcoin is launched from 2009 following a pioneering paper bias Itachi Nakamoto female-male who notes there will be and only 21 million bitcoins in existence and there are

currently 16 point 8 million in circulation with the facts coming out in two years time what's quite interesting are the reason why I think points in the last week is going up in value is actually of those sixteen point eight million bitcoins 15 percent of them actually have gone missing they're lost in audience they're lost people lost their passwords are lost in laptops and that that's quite amazing are there 40 percent of bitcoins are held by investors there are holding these for their pensions and on negative service actually the reality is there's probably about ten million that are actually out there being right now hence why the value of these keep going up and I still believe that we're in the beginning of a huge trouble certainly not the end of it and as soon as an act comes out that's local that you can use bitcoins are any cryptocurrency on here in this country that's when we'll see this thing really fly so the first one retail use a bitcoins

was in May 2010 when a programmer paid 10,000 bitcoins for two Papa John's pieces today's exchange rate those pizzas are and many people believe the cryptocurrency without be the next evolution of money itself so back in q4 last year the market capital cryptocurrency or bitcoins was over 164 billion however thanks to JP Morgan there was a really good flash sale last week and I hope you guys up we've got in there where the comics went down because that is the time to buy John McAfee the antivirus guy who's a big crypto follower posted this the day of the crash last week everyone relax the crypto dip was caused by Mike Berlin JP Morgan claiming the government's put bad cryptocurrencies or how this is the same company that could be quite a fraud it's

a bank for sake they are rightfully terrified of what we are doing but it can't be stopped and that is absolutely right this cannot be sought the reason Satoshi invented bitcoins in 2009 was because the banking market crashed and everyone went or he so anyway forget this I want to launch a decentralized currency that anybody can use without a bank telling you what to do and that's how it all started and price fluctuations especially last week are calls by banks sending out press releases that are completely false and that's why I say this flash sale that they caught they are their cause certainly not a dip by now because these things where they keep throwing stuff out there gradually goes away currency to come back again so show me the coin there are now over 1500 different crypto currencies so which on the succeed wealth that's the big

question each cryptocurrency offers something different for the user Bitcoin brilliant innovative that daddy really etherion smart contract pioneer ripple effects transactions by using reality cash coins clearly going to be the best way occurrence and fancy dinner and what my view is their home in the next five years every company large or small will have its own token or its own coin that people could buy whatever price and use those at some kind of discount to use within that business and they're also amazingly fun coins coming out my nose is this one last week show who would a Bernard a coin which banana coin is the world's first blockchain option for participating in a production of organic and honest in layoffs lesson they wanna get free burn on us every month who would do that fantastic sex coin sex what is the future of paying transactions for the

outdoor entertainment industry offers users the surf and service riders at a secure yet anonymous payment system notice it's quite funny because and that dance cups had virtual currency 15 20 years ago moved industry to pay 20 pounds of you got a dodgy Stringfellow 20 pound note which you then paint the lap dancer all this is darkness is taking you out to the future now instead of getting a crumpled-up 20 pound note that your wife might find in the genes before you die because you're pissed right transact with the dancer and then more importantly when you leave the cards you can go and change you back into fiat currency on the blockchain and all of these things are fun ways of using tokens this actually stands for doggy toy now this was created as a joke as a meme coin and it hit a 2 billion market cap last year I mean this will start to stop because all this is new and fun and different but these guys actually had

advertising on NASCAR cars and um trust me they were doing that and they're still doing that right now so the first game that has really taken off on the blockchain using cryptocurrency is something called crypto Kitty's launched back in October November last year so what is crypto Kitty's a crypto kitty is it game centered around a breathable collectible and oh so adorable creatures we call crypto kitties each cat is a one of a kind of 100% owned by you it can be replicated taken away or destroyed what you do is you go to this website is live now and you'll you will see pictures of the cats like that four people have draws and you buy this camp we buy this cat and they merge together an out pops your kitty and they'll have features of the tunic before and you can then breathe and trade your kitties through training them on the blockchain these

kitties are going for hundreds and thousands of hundred thirteen thousand dollars for the highest on painful I mean just a little picture doesn't do anything it doesn't animate it's purely a picture and in one month baby may make 15 million dollars worth of trades through Kitty's I mean just it's crazy not and in fact this game back in November actually really slow down the etherion platform it's the first time that the etherion network struggled to cope with the amount of transactions that were happening while you is that when you can trade guns that's what you're really gonna start seeing you know stop so funny you're going through my CEO so be sees that they're not give the I see okay now that's clearly not true there clearly is an area for these scenes and probably sort of BC routes but there's certainly a new king in town and the ICR to me is an a round on steroids and if you can get this correct

and get good communities behind you you can raise a serious amount of cash so this will quite offerings raise one two billion last year 250 ICS have taken place since January 2016 the totalizer appeals are increasing faster and the traditional equity based fields so what do we do so reality gaming group used an initial quad offering to secure cash towards the development of reality clash the game so clearly we were a utility people were investing into us and helping us to make the game which they can then use on Queenie to by in-game weapons the reason we chose to do this is actually we've already halfway there because we already have we had Adriana a silver coin which when the game comes out later this year you buy those silver coins on the App Store for a dollar and 10 of those or points you can think are made up by in-game

purchases through our platform so we already had a price that the coin was worth what we did was create another currency called reality cash gold and we take an investor a 70% discount on the price of that coin so they can buy at 30 cents when they know that when it comes out the other coin is going to be $1 but what gives you even more value is the gold version allows you to buy things with a silver version does it so you can come onto our trading platform from next month actually and buy exclusive limited-edition weapons with your ICO coin but you can then trade on the blockchain just like crypto kitties and sell those and make a profit almost become a virtual arms dealer or you can keep those weapons and safer to where the game comes out and then the value of those hopefully goes up so that's why from one point of view we get investors a really good opportunity to tell me

quickly they gave us the money to fund the game and they took a pun but the coin that they bought a 30 cents is going to be worth more in the future than what they bought and therefore they can sell it to gamers or just play to sell it through exchanges on the blockchain so this kind of mechanism is really taken off and I'll show you a very interesting graphic king of all time in the last four years of ICO activity and what you'll see top left is funds raised by token sales and in those colors down the left hand side of the countries and that farthest Ruby across the bottom is time so it started off in Jan 2014 we're starting to see early icos happen you just hit Jan 50 people are still thinking about don't you know what it is it's really early on there's a few little rude moves it's press releases going out still people don't really know what's going on and then you come into Jan 2016

bearing in mind this is not long ago two years ago and this is when it starts to really take off and you start to get bigger ones coming and the payer at 160 million in ICO investment and that really kicked off the market so you're now going to almost January 2000 one year ago today this is big day on one looks a little ones popping in and then suddenly everyone goes eyes to go crazy and you start to see bigger ones coming your said 200 million 10 sorts of 236 million and then you're coming into the back end last year and pop that's where we are that's how fast this market is grown it is just quite incredible so long so I wanted to talk me back to us on one

of the reasons with is the ICO I've explained even five gold coins early if you trade them on the on the trading platform investors will start earning money and you can either sell them to other gamers or you can sell them on exchanges this is what we did to promote it when you go to ICO the key thing is to have a video that kind of explains it very quickly to people that suddenly get what the utility is that they're buying into on whether they think that that utility in our case a game is going to be worth something in the future reality clashes is no commented reality combat game available on iPhone and Android with ERC 20 tradable armory backed by the etherium baktun the first of its kind

familiar places and narrow your battlefields and the people in your surroundings are either your allies or enemies by using real-time geo targeting technologies join and set up your own private teams in tournaments or go into all that Street combat action introducing the world's first tokenized armory reality clash offers a wide range of weapons through its ERC 20 armory which we bought installed the RCC gold turbine allows access to unique and powerful weaponry designed exclusively for the turbine sail I will only be available for a limited period before the game launches the fortunate few who are lucky enough to participate in the token sale will have weapons and armory that will never be available again participants who buy weapons in the token sale can even use them in the game or trade or sell them through the reality clash platform or secondly markets money all in-game content will be ERC 20

tokenized with a blockchain based trust list our CC gold coins will also get you exclusive access to hidden in game levels exclusive events upgrades as well as access to early demos and tournaments to raise the funding required to complete the development of the game and trading platform we have structured a token sale that will run for 30 days participants in the turbine sale will get free bonus coins plus a massive discount of a price of the coins reality clash turns games into reality so we sold 14 million RCC coins total sale and we had some spare ones which were birds so they were never ever be any more tokens available hence why we hope the value of those tokens that the investors put in the 30 cents will start to rock it because gamers will

want these exclusive guns that's the theory behind the investment so I'm gonna talk about how we did it and if you're thinking of doing an IC o---- hand you guys know about it so first of all you have to have a business that can use its own currency or its own virtual currency its own of tokens I've seen a lot of companies now that I've just seen i ciose good companies that just wanted a token on the side and it doesn't make sense you know investors now need to know will that coin go up in value whether the product comes out or is it going to be limited-edition and after under the termite 30 cents into $100 and that's really key looking at this thing coming it from the investor's point of view what's the value of this for them draught of white paper white paper is a kind of similar to a business plan not as complicated white papers what I did it a year ago with a very basic now they are very complicated even because the blockchain is very open it's now you're

asked to put the code up there of some part of the product if it's a game but people do want to see if it's real as opposed to a scam which is obviously problems earlier on we look at how many coins you want to sell minimum Kevin Hart cap so our minimum cap was the minimum we needed to make the game when we had a business plan that showed we needed to sell and then we had a hard cap which said would it be nice if we got to hear the agreed price of the coin in the ICO and the discount so as I said we did it for 30 cents our discount was a discount of 50% for the first week so we did a pre-sale so if you bought 100 coins we gave you another 50 for free so that was an incentive to come in early and most I suppose have that bonus to get people to come in earlier on praising our contracts in the coins this is key we used a company called token market to do this for us because it was so new for us we didn't know how to do

that so there are there are quite a few companies now offer this service you can do it all yourself if you have blockchain debts understand it there's no problem in doing that but we went for help on that security in order at the token system which you know people want to see that smart contracts they want to audit it they want to make sure that it's real and a hosting platform so when that person we got paid a visa when that person said that ether to us I went into our wallet it got put into an escrow account and then on the small contract said that if we hit a certain amount at the end of the IC o---- an ordinary tears wallet through the eye through the escrow account wallet they went straight into walls and so that transaction and hastily worked out and again we use the third party to do their force so not GRI Co arranging IC o---- takes approximately three to four months are very similar to kind of crowdfunding an IC open stay open for 30 to 60 days on average I've seen I've zeroes that can

sell out in an hour but this tends to be the average after an ISO it takes two to four weeks that this should be the tokens to the crowd disciplines and convert are the race funds that have come into us into project funding so down here is a quick sort of road map so if you're watching the ICO there if you go back t-minus four months start drafting the white paper t-minus three months promotional website start making that and then to most two months decide on the LS here at processing the goals I what the prices that we never have the hard cap one month before start reaching out to investors seven days before launch the infrastructure the wallets or to the ICO one month after the asset depredation and then in theory two months after that those coins should be available on exchange for investors to stop selling so the great thing about ICO is from an investor's point of view is when they're invested in us and actually they can sell our token about two weeks after ICO

codes which means it you can liquidate very quickly through an equity investment you've got away from me to sell my company before you get shares back so from an investor point of view ICO is a super called you can get your money out very quickly especially if that coin goes above the value of what you bought it for so um a question I get asked a lot where'd you find these investors from you know who actually investing it and this is tricky because there is no platform for investors so there is it's not my crowdfunding where they don't want a Kickstarter or seniors or crowd you the only way you can do this is to start building a hype right it needs really good community managers you need people writing blogs you need people talking about you and posting these big Bitcoin and I used to go forwards oh you need to be listed on the icy air listing websites well we actually did it

and we didn't have to pay now now in most cases you do have to pay and do a very clear step-by-step kind of what the coins worth and create the white paper and then usual social channel slack Telegraph Twitter Facebook YouTube they are absolutely key this is the only way the community can start contacting you back and you need to be 24/7 on this community manage that key ready to answer questions that come in through telegram come in through slack and then next thing is create a compelling marketing campaign you have to stand out above the rest so ours was based around military films and shooting films over winter classic sayings go I don't know you all got offense I'll find you a reallocation killer you've taken from taken this is our 20th read taken from Scarface if we put these across Facebook we advertise the one of the I see a listing sites and we spend about twenty to thirty player that was the total amount I think now we can added normal

those because the cost of advertising all these sites are now so expensive I'll be back in reality flash so we build up this really cool marketing campaign the people started to recognize the brand one shot one kill from American sniper and you know keep your friends close and your enemies closer Arnie and then um it's follow that's right and then now we have competitions like when your own personalized come and get your name together so I can see you in the game itself now really keep the buzz going get the morality don't get people talking about it and then this is the key thing have a countdown only two weeks to go before the ice your eyelids I need one week's here for the eyes go I need three days get the fire going one day to go don't miss happen around Rio special SEO and then this is P we had a bounty program we had 101 million RCC coins that we split and offered as bounties for people to write about us across social media blog submission campaigns and even

people translating our website we gave some of our acquaintances really important that you offer the community free coins for doing stuff for you and we went ballistic there's five different ICS at the bottom we have black line we've got forty thousand followers on Facebook in two weeks we will get 10,000 followers on Twitter we really built the hype you've got everyone going and then the day it went live you see the countdown clock on your site and it boom he goes live and this was our homepage when it went live and then this is where you've got to start watching out this is where the scabbard start appearing so I'm going to show you this take a look at this Ford's in the next slide that's the next slide anyone see what you are l2h there this is a complete clone of our website and it launched exactly the same time as

our theme and they actually when you search for it 7.5 billion dollars in just one day only on specialized you know that's an ad that isn't from us right so that they'd be scammers copied our psychic advertised that they were the official site but you were clicked on that it went to the the scam site and only thing different was the wallet address that you same your either we lost a 40-50 came a couple of hours before we picked it up and the investors which I thought well sorry boys sent their ether into that wallet can never get it back the spammers just appear you have to be so so careful you be people on this all the time and the worst time is they do it when you're asleep and then it happens in Russia happens in China these guys are experts on it slack we had to shut down we had so many people hack our slack Channel pretending to be us emergency the monitors there's

no change of official reality pressure community manager who's gonna be on this something it is just it really is quite unbelievable to see and then you get threats like this this happened last week I see a place we can afford this pal to earn is important in your company make the decision your network will be DDoS starting 18th the first you have select if you don't pay a protection fee of 0.5 bitcoins so this warning address all right if you don't pay then your site will be going down permanently price will stop and increase the one bit going and we'll go our point for bitcoins for every day of the attack and and with we used to see it is alright but they're scammers just just bragging but at the beginning it really went especially what we had our website completely copy it was like what you do you know and it really is quite scary so if you're running a nice yeah just watch out um coming quick exam so this is the

proper tournament but everything is open for people to see your wallet address is here that was our actual address you can copy and scan anyone's what it address into a website pool could eat the scale and you can see exactly how much people are investing so here is this is a while ago so it was said one hour ago from this address I never know who the investors are by the way all you have is a is an address oh but I don't know anyone and invested in us and no one had contacted us no one ever asked for business plan no one ever asked for financials and then the value of one of the two plays use the point one beneath that one ether it's fascinating to see but anyone could watch this you know it is open for you on the blockchain so I'm just kind of finally we kept push it and even with the I suppose party keep going we need you join the ice to

keep the keep the high going another day your IC o---- phones was when Trump and North Korea had their that were farm fury so we quickly made me sad I see a person for 5 p.m. today stuck it on Facebook the clicks I'm not sure how many people invested on this in the brand across was words are fantastic so is it worth it hell yeah and we raise 9018 for weeks which was 10 million last week is 9 million this week but hey it was it was an experience that are really thoroughly enjoyed but gotta get me a few heart attacks and um I would recommend anyone to do it [Music]

[Music]