The Future Coin

Bitcoin

$46,860.58

BTC -7.84%

Ethereum

$1,516.19

ETH -6.86%

XRP

$0.44

XRP -7.68%

Litecoin

$175.24

LTC -13.82%

EOS

$3.65

EOS -9.40%

  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases
No Result
View All Result
The Future Coin
No Result
View All Result
Home ICO101

How To Cash Out Your ICO Proceeds

by The Future Coin
May 5, 2020
in ICO101
0
How To Cash Out Your ICO Proceeds
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Here’s a situation: your project’s initial coin offering (ICO) was a success. Your crypto-wallets are full of Bitcoins, Ether, Litecoins and any other cryptocurrency you were accepting contributions in. Now is the time to celebrate and start putting the collected funds to use.

However, regardless of how much you managed to raise in cryptocurrencies, you will still need to make a lot of settlements in fiat currencies like the US dollar or euro. Be it paying for legal services, PR-campaigns, rent, bills, late night food deliveries and whatever else, you will need to cash out your proceeds.

Of course, while there are some advertising agencies and legal firms which might accept payments in cryptocurrencies, most third parties as well as your own employees will demand to be paid in their local currencies.

Withdrawing cryptocurrencies to fiat, especially when it comes to large amounts, is a very daunting process. But if you’ve properly prepared for your ICO campaign, you and your legal team should already have a solution to this.

Why is the process so complicated?

These days, a lot of banks all around the world are exploring and making use of Blockchain technology. However, the absolute majority of banks are still extremely conventional, and despite adopting Blockchain, they really don’t like anything to do with cryptocurrencies.

A growing number of banks worldwide are refusing to serve cryptocurrency-related businesses. Heads of the world’s biggest banks have been labelling cryptocurrencies a fraud. And even if you manage to find a bank that won’t refuse working with your business, you need to be prepared for months of legal deliberations and paperwork filing.

That’s because banks will require your project to comply with Anti Money Laundering (AML) and Know Your Customer (KYC) policies. So, expect the bank’s representatives getting in touch with you to try and find out exactly how ‘clean’ your funds are, asking you questions about Source Of Funds (SOF) and Source Of Wealth (SOW). Most likely, you will be required to verify virtually every contribution, no matter how big or small.

Money and handcuffs

Even after you’ve done all that and managed to set up an account, you’ll always have a threat of the account being shut down. Some key words, such as Bitcoin, ICO, Ether, TGE and so on might lead to your account being closed and your transactions being reported as suspicious and potentially fraudulent.

Cashing out via an exchange is a different story, but it’s equally as complicated. To begin with, you usually need to have a bank account linked to your profile in order to be able to withdraw funds from an exchange. Eventually, after a long verification period, you will have to make your peace with long waiting times and high transaction fees.

Then, of course, there is the hurdle of finding a suitable and trusted exchange that operates in your local fiat currency and is legal in your jurisdiction.

As always, we are warning you against keeping your funds in a wallet provided by an exchange. Remember, you are never in control of such wallets. There have been many instances of exchanges being hacked and losing all the money stored on them or simply running away with people’s funds.

Cashing out small amounts

Trying to withdraw the entire $15 mln you’ve just raised will be a logistical nightmare, which will inevitably raise a lot of suspicion and most likely result in your project being investigated by authorities. The best strategy here would be cashing out small amounts that the project actually needs every other month or so.

Mountain of money, mountain of gold, mountain of bitcoins

There are a few ways of going about it:

  1. Sell the required amount of crypto on a suitable exchange and withdraw the fiat equivalent to a bank account.
  2. Use peer-to-peer exchanges such as LocalBitcoins and LocalEthereum, or one of the numerous similar options available online.
  3. Make use of payment processors that enable cryptocurrency to bank account payments for rent, legal fees and income and skip opening a bank account altogether. For instance: CoinPayments, SpectroCoin, SpicePay, and many others.
  4. Get yourself or your employees a prepaid Visa or MasterCard that you can top-up with cryptocurrencies and use it to pay online and offline at bricks-and-mortar stores using any Point Of Sale (POS). You can get one of those via Monaco, TenX, Bitwala and others.
  5. Alternatively, you can pay your employees and service providers in cryptocurrencies and provide them with instructions on how to withdraw the funds in fiat. This, of course, has to be mutually pre-agreed.

Cashing out big amounts

As of yet, there are no one-stop solutions for project cashing out big amounts of funds raised through an ICO. However, Bitwala are currently building a platform that is supposed offer ‘a banking experience that merges the crypto and fiat worlds’.

Alternatively, here’s a (rather small) list of countries with a generally positive attitude to ICOs which will be ready to open a bank account for your project’s needs:

  • Singapore
  • Switzerland
  • Cayman Islands

Source link

EDITOR’S CHOICE

Global Crypto Investment Fund FD7 Ventures to Sell $750M USD Worth of Bitcoin to Increase Cardano and Polkadot Holdings

Coinbase Files for Direct Public Listing With SEC - Cryptocurrency Regulation

Tanla to take Blockchain platform Trubloq abroad

From mail-in ballots to business as usual, Vermont municipalities prepare for Town Meeting

CI files prospectus for Ethereum ETF - Advisor.ca

Crypto bull run on track amid surge in US inflation expectations

Best Pick For You

News

  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Business News
  • Ethereum News
  • Litecoin News
  • Ripple News

Features

  • Market Analysis
  • Opinion
  • Explained
  • Policy & Regulations
  • Top Cryptocurrencies
  • Technology News

Market Tools

  • Market News
  • Price Indexes
  • Bitcoin Price Index
  • Ethereum Price Index
  • Bitcoin Cash Price Index
  • Litecoin Price Index
  • Monero Price Index
  • HeatmapPartner

Cryptopedia

  • Explained
  • Bitcoin101
  • Bitcoin Cash101
  • Ethereum101
  • ICO101
  • Ripple101

© 2020 Coingraph

No Result
View All Result
  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases

© 2020 Coingraph

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
bitcoin
Bitcoin (BTC) $ 46,623.00
ethereum
Ethereum (ETH) $ 1,507.20
cardano
Cardano (ADA) $ 1.12
binance-coin
Binance Coin (BNB) $ 225.68
tether
Tether (USDT) $ 0.994886
polkadot
Polkadot (DOT) $ 31.42
xrp
XRP (XRP) $ 0.433463
litecoin
Litecoin (LTC) $ 174.61
chainlink
Chainlink (LINK) $ 25.72
bitcoin-cash
Bitcoin Cash (BCH) $ 487.56
stellar
Stellar (XLM) $ 0.381911
usd-coin
USD Coin (USDC) $ 0.996630
uniswap
Uniswap (UNI) $ 23.19
dogecoin
Dogecoin (DOGE) $ 0.050037
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 46,947.00
nem
NEM (XEM) $ 0.501786
okb
OKB (OKB) $ 16.72
cosmos
Cosmos (ATOM) $ 17.61
aave
Aave (AAVE) $ 335.30
solana
Solana (SOL) $ 14.28
crypto-com-chain
Crypto.com Coin (CRO) $ 0.155831
monero
Monero (XMR) $ 206.60
eos
EOS (EOS) $ 3.63
bitcoin-sv
Bitcoin SV (BSV) $ 182.35
tron
TRON (TRX) $ 0.045101
iota
IOTA (MIOTA) $ 1.13
huobi-token
Huobi Token (HT) $ 16.60
theta-token
Theta Network (THETA) $ 3.04
havven
Synthetix Network Token (SNX) $ 18.88
tezos
Tezos (XTZ) $ 3.58
neo
NEO (NEO) $ 38.19
vechain
VeChain (VET) $ 0.040766
terra-luna
Terra (LUNA) $ 5.98
ftx-token
FTX Token (FTT) $ 28.02
binance-usd
Binance USD (BUSD) $ 1.00
dai
Dai (DAI) $ 1.00
cdai
cDAI (CDAI) $ 0.021083
dash
Dash (DASH) $ 214.70
elrond-erd-2
Elrond (EGLD) $ 124.04
the-graph
The Graph (GRT) $ 1.73
avalanche-2
Avalanche (AVAX) $ 26.68
filecoin
Filecoin (FIL) $ 35.66
kusama
Kusama (KSM) $ 213.79
celsius-degree-token
Celsius Network (CEL) $ 4.91
maker
Maker (MKR) $ 2,037.80
compound-ether
cETH (CETH) $ 30.46
leo-token
LEO Token (LEO) $ 1.93
sushi
Sushi (SUSHI) $ 14.15
compound-usd-coin
cUSDC (CUSDC) $ 0.022154
compound-governance-token
Compound (COMP) $ 401.24