ᴛ ◒ ꜱ ʏ ɴ Profile picture
Jan 3, 2023 4 tweets 1 min read Read on X
Day3
ICO
ICO stands for “initial coin offering,” and refers to a method of fundraising capital for early-stage cryptocurrency projects. In an ICO, a blockchain-based startup mints a certain quantity of its own native digital token and offers them to early investors, normally in
exchange for other cryptocurrencies or stables.
This kind of information for ICOs comes with research and can be accessed through certain research tools.
ICOs enable startups not only to raise funds without giving up equity but also to establish a community of incentivized users
who want to see the project succeed
While ICOs can offer an easy funding mechanism and an innovative approach for startups to raise money, buyers can also benefit from both access to the service that the token confers (usecase)as well as a rise in the token’s price
If the projects succeeds.
These gains can be realized by selling the tokens on an exchange once they’re listed.

Tag a newbie to learn a word today...
#HappyNewYear2023 #31daysofdefiterms

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More from @0xTosyn

Jan 29, 2023
Day 28 of 31 days crypto/Defi terminologies

Private sale vs. Publicsale

Some of these terms are really confusing especially trying to navigate all of these terms as a newbie

Do they mean the same thing?

A thread🧵
You get into a project's presale, whitelist spots are being hustled for, and Boom! You see some folks talking about participating in private sales😀

The confusion then set it.

What are public and private sales?
Both are all under a fundraising category, ICO, but they have different meanings.

Walk with me👇👇👇

✅️Private Sale

The ICO private sale period is the process in which tokens that are not yet announced to investors or open to the public are sold.
Read 11 tweets
Jan 28, 2023
Day 27 of 31 days crypto/Defi terminologies

IDO-Initial Dex Offering

What are IDOs?

How does it work, and how do investors benefit or profit from it?

A thread🧵
We have many offerings in the crypto/Defi space, the IDOs, the IEOs, the ICOs, and others, but this tweet would be limited to IDOs.

But then, there's something peculiar with these terms, which is the offering.
Offering in this context is a form of fundraising for Defi projects, but they are done through different means.

✅What are IDOs

Initial Dex Offering is simply launching a project, token, or coin
Via a Decentralized liquidity exchange.
Read 13 tweets
Jan 27, 2023
Day 26 of 31 days of crypto/Defi terminologies

Yield Aggregator

What are yield aggregators, and how do they operate?

A thread 🧵
Yield aggregators are also called auto compounders or yield optimizers, and they play a crucial role in the yield economy by combining  different  defi protocols
and strategies to maximize investors' profit.
Let me explain what I mean by this, just like how these ponzi sites promised returns on investment. Then these resources are pulled together and invested in different businesses, as the case may be, and then returns are distributed to these guys based on the agreement made.
Read 11 tweets
Jan 23, 2023
Day 22 of 31 days of crypto/Defi terminologies

Tokenomics

A big part of a crypto project's success can be attributed to its tokenomics.

But what does the term "Tokenomics" mean?

A thread🧵
In layperson’s terms, Tokenomics, put separately, is token Economics, which is the Economics of Tokens.

This includes everything from a token’s supply and how it’s issued to things like what utility it has.
One thing that determines market prices in the short run is demand and supply.

Then understanding the factors that will impact either supply or demand is vital to speculators and investors.
Read 11 tweets
Jan 21, 2023
Day 20 of 31 days crypto/defi terminologies

Smart contract

A Defi protocol can only be said to be complete when there is a smart contract deployment.

What really are smart contracts?

A short thread🧵
Smart contracts are tools that can automatically execute transactions if certain conditions are met without requiring the help of an intermediary company or entity.

What the smart contract does is cut that central body of authority.
It is more like the reason why decentralization is possible.
Whether it is obvious or not, intermediaries permeate our digital lives.

Even simply sharing a picture with friends online requires the services of an intermediary like Facebook or Twitter. .
Read 7 tweets
Jan 20, 2023
Day 19 of 31 days crypto/defi terminologies

Venture capitalist

Sometimes the term/title 'venture capitalist' is often misused by a lot of folks in the space

Who are venture capitalists?

A short thread🧵
Venture capitalists are known to be the prominent investors, the whales in the crypto/stock exchange market.

A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake.
This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.
Read 12 tweets

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