Darknet markets are well known to employ tactics that enable them to thrive while making everything about their operations anonymous.
Over the years, markets have integrated various features for either improving service delivery or enhancing the security of their systems.
In the most recent instance which has taken innovation notch higher, Tochka/Point Market has resorted to employing the concept of Initial Coin Offerings (ICOs)-making it the first ever market to do so. And perhaps a new lesson from other business concepts we can learn from darknet markets.
Tochka Market Launches ICO
Ever since the early days of darknet markets, implementations of specific features have made hidden markets gain reputation and stand out in one way or the other.
And for Tochka, it will go down in history as the first ever to create its own cryptocurrency as well as embrace an ICO.
The digital asset will be known as The Tochka Coin, and those who invest are promised by the market dividends after a specific timeframe.
According to Tochka, the issuance of the coin is meant to raise funds which will then be used in profit distribution.
However, and just like any other investment, the investors will receive the dividends according to their contribution. Other factors put into consideration are the ICO strategy and the percentage contributed.
Crowdfunding and ICOs
Crowdfunding is a popular online method used to facilitate the gathering of money from a large group of people. There is no specific amount of money required, and so the people who take part in crowdfunding bring whatever they can on the table.
The crypto world has now begun employing the concept of crowdfunding through ICOs. In normal circumstances, and before the launch of a major digital asset or platform, the involved parties employ the concept to gather monetary resources.
In the digital era, ICOs have shaped how investments are made and business conducted, and as such, the mode has become a preference to many entities that wish to launch projects of various types.
Through ICOs, the party responsible trades the cryptocurrency they have for an already existing and more popular token.
Risks Associated with Investing in the Tochka Coin
In general, darknet markets carry a lot of uncertainties because of the nature of operations that go on inside of them.
Because of this, law enforcement personnel are ever on the watch to get hold of those in involved in darknet-related actives.
Given that Tochka itself is a hub, it is for sure that authorities are closely monitoring its activities for any tips that may lead to the seizure of the site and arrest of the culprits.
Now that it has begun embracing ICOs, then it is conclusive to say that it has gained more attention.
For those involved in the coin, then it can be considered that they are enabling the illegal industry to thrive. And in the event the currency is a success, then we are likely to see more investments in it over time with other markets following suit.
However, the possibility of getting scammed is very high. From an analysis of the behavioral patterns of hidden marketplaces from when they are launched to when they go down, then we note that the fall is attributed to three factors.
The first is seizure by law enforcement personnel, second is through exit scams and the last is through hacks.
When markets fall through seizures or an exit scam, then it tends to be permanent, but when it is through a hack, then there is a possibility of them getting back up.
For Tochka Coin, one may be justified to assume that perhaps it is a broader scheme meant to scam unsuspecting victims the market can go down, which is possible.
Cryptocurrencies Gaining Momentum
Only time will tell how Tochka Coin will perform in the market, but as of now, it is still too early to call. With that in mind, the adoption of other virtual currencies has proved useful in darknet markets despite the fact that they also have their own inconveniences.
An illustration is the case with issues in the Bitcoin blockchain, which forced markets like Silk Road 3.1 to integrate other payment options as a measure to streamline the flow of operations.
The move proved effective as market users would make payments smoothly and conveniently.
More so, those who wished to initiate withdrawals would not have to put up with the delays and high costs brought about by Bitcoin.
The other reason that made Bitcoin lose preference to many is the fact that third parties can trace transactions. Despite all these, the asset remains the most popular cryptocurrency in dark web.
Among the other top virtual currencies adopted in the recent few months by the darknet markets, we can note that Monero stands out because it has been integrated into the marketplaces more than any other digital asset making it the second-best option after Bitcoin.
A few of the hidden sites which already have Monero are Dream Market, Empire Market, Wall Street Market and Silk Road 3.1. However, some few weeks ago, market users were profoundly affected by Monero's hard fork.
But since Monero is second, it means that the markets that already have it previously used Bitcoin or another cryptocurrency, and as such, the effects were not severe; customers compared to a scenario of if Monero alone was in use.
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