Crytocurrency Business

Discussion in 'Beginner Q&A' started by Shadow___, Feb 25, 2018.

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  1. Shadow___

    Shadow___ Contributor

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    Hello everyone,

    I am pretty new to the crypto forums but thought this would be a great place for me to ask questions that other people can help answer. Hopefully, I am
    welcomed with kind regards lol. The major question that I seem to not be able to find an answer to is how do crypto startup companies/businesses make money? Do they every
    2 weeks sell off a certain number of coins to pay their employees? Is it wrong to do it this way as this creates a lack of trust for investors? Do companies use the money
    in the market cap to do this? I am really curious and was hoping somebody could answer the question with a full explanation.

    Thanks,
    Shadow
     
    The CC Forums likes this.
  2. The CC Forums

    Staff Member

    Hellos and welcome to the forums.

    The basics of starting a business are the same regardless of choice of business arena. There are numerous crypto businesses covering a wide range of areas. Without knowing what your specific question is, a specific answer can’t be given.

    Blockchain startups to create a tool for other businesses to use or for consumers to have a new function available to them? ICO’s seem to be the way to go.

    Decentralized exchanges for crypto swapping? Again ICO’s are the way to go.

    Any business startup relying on the ICO model will collect ETH that they will need to sell to cover development expenses, payrolls, taxes, legal fees, marketing, presentations, and so on.

    For businesses that don’t start with an ICO, you will have to pay expenses and employee compensation in fiat currency of the country your business is located in. Do you need a website design team? You’ll pay them in USD. Writers and editors? Again you’ll pay in USD. Hosting fees, tech support, shipping/handling if selling a product, marketing, processing accounts...almost all in fiat USD.

    Crypto businesses are not just set up by someone who happens to have a lot of bitcoins and decides to start a business. Any investors involved will have contributed money on the front end to get set up and continued to contribute to running expenses just as with any legit business in any field. For a business to succeed, they must create a product or service that has value to consumers. Otherwise the business will eventually fail.

    Now if you’re asking about crypto pyramid schemes and crypto investing services where you send in bitcoin with a promise of big returns, well those aren’t really businesses and don’t really have start up costs or expenses. They just scam people out of money that they use to pay the early investors to recruit more investors until they disappear with everyone’s money.
     
    Izekreiam and Shadow___ like this.
  3. Shadow___

    Shadow___ Contributor

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    Thanks man! I really appreciate it!
     
  4. The CC Forums

    Staff Member

    You’re certainly welcome. I consider these boards to be a crypto business, and we’ve gone though all of the above steps to get to this point. You have to estimate upfront costs and keep several months of operating costs set aside until revenue ramps up.

    Hopefully we can be of some value to both new and experienced investors ready to move into the crypto space. We want to offer more than just “to the moon” memes and constant “hodl” advice you find elsewhere on the internet. Or sites that appear to be neutral but constantly shill their own investments.

    I want crypto to be taken seriously by both Main Street and Wall Street. To do that, the space needs to mature and present itself a little more professionally. That’s how I see crypto gaining widespread adoption, and we want to do our part to get intelligent content out there about the real projects with value while also exposing the scams and junk that causes some to label the entire crypto space as a scam.

    It will take a lot of work, a lot of time, and apparently more money than I expected. :cool: We have some optional premium content coming later this year that we hope will be of value to members and will help with our expenses. We’re trying to avoid using the donation model employed by other sites, again because I want this to be a legitimate business covering legitimate crypto subjects. Don’t worry, the majority of content will remain free.

    Stick around. Lots of exciting stuff coming.
     
    CryptoTC likes this.
  5. CryptoTC

    CryptoTC Crypto Fat Cat
    Staff Member

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    Definitely stick around. You’ll learn how to start and successful run a business or you’ll get a valuable education in what doesn’t work and what to avoid doing 2nd time around.

    :p :confused: :eek: :oops: ;)
     
  6. Jack Wilson

    Jack Wilson Contributor

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    MySmartProperty is rumored to be the next big thing in Crypto, has anyone been on "mysmartpropety.io" and can let me know if their coins are worth buying?.

    Let me know what you think guys.

    Thanks
     
  7. Shadow___

    Shadow___ Contributor

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    The link doesn't work
     
  8. Jack Wilson

    Jack Wilson Contributor

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  9. CoinsClone

    CoinsClone Contributor

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    Business Analyst
    India
    Starting cryptocurrency business is not big deal. You want to start the business by using cryptocurrency exchange script. You can integrate this script with your website easily and start with in short period. READ MORE
     
  10. atithisha

    atithisha Contributor

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    Cryptocurrency business - if you own a business and are looking to improve your bottom line you may want to consider accepting cryptocurrencies as a form of payment from your customers. but recently is it new trend growing blockchain powered peer-to-peer network. is it very popular in startup world.. Readmore : About ICO & Cryptocurrency platform
     
  11. Jack Wilson

    Jack Wilson Contributor

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    Hi, thanks for your feedback, do you know what the underlining business is like, when I read the White Paper it sounds positive?
     
  12. The CC Forums

    Staff Member

    It appears they intend to create a peer to peer home sales platform with an escrow smart contract component. As far as potential, who knows? It certainly is an industry ripe for disruption, but it's also a huge task to pull that off successfully.

    Smart contracts and escrow set ups will eventually eliminate the middle man in many industries, but not without a lot of work and a lot of pushback from people dependent on the existing middle man model for their income.

    My take? It's still to early for any of these startups to succeed. Many will come and go before one finally gets it right. And maybe not for 5 years or longer.
     
  13. Old Man Crypto

    Old Man Crypto Expert chainblocker

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    I don’t think the market is there for the product they’re offering. But I’m using the US as my example and I don’t know how house buying in Australia works.
     
  14. The CC Forums

    Staff Member

    Let’s keep this topic going. If you are talking crypto businesses that are ICO’s, the money is used to develop the product and pay the team working on the product. That’s the general idea, but I think many ICO’s raise money and then just disappear. Or rarely release updates that are never confirmed as valid.

    Crypto-related businesses like journalism, hardware makers, educational content producers, social media influencers
    and PR, legal teams, hardware wallet makers, software wallet developers, accountants and on and on are generally depending on fiat currencies to survive.

    So there are two major categories of crypto business: the blockchain developer side of the field and the then crypto-related companies.

    They have different financial models and processes. Interesting to me at least is that crypto currency depends on fiat to measure success. Until the entire ecosystem is setup from start to finish works fully in one blockchain or with cross-chain transactions, fiat will continue to play a major role.
     
  15. Jiten Rajput

    Jiten Rajput Contributor

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    Generally, people starting a cryptocurrency business already have an occupation in the IT domain like web development and services. So, they do have funds, developers, marketers who are enlightened about the cryptocurrency and blockchain concepts.

    Another soft cap is generated by releasing ICO. Presale ICO is the roadway for crowd funding. Writing a white paper also helps to gather funds from cryptocurrency investors.

    When things turn out to be right ICO is listed on other exchange platforms and the developers come up exchange platform from the soft cap collated.
     
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