Hello, dear readers! You probably already know a lot about investing in cryptocurrency, in particular, that you can make good money on new promising tokens. However, not everyone knows how to get the maximum benefit from a coin even at the moment of its appearance. In the world of finance over the past couple of years, there has been more and more talk about ICO. Literally the acronym means initial coin offering. And the first thing that novice investors want to know about ICO is what it is in simple words?
In this article, I will talk about the intricacies of an initial token offering and explain how to navigate the many projects that are conducting it. Investors have been profiting from participation in ICOs since 2013 . Do you want to join them? Then read on!
What is ICO
Firstly , this is a relatively new way of private investing in cryptocurrency. Secondly , projects are created on the basis of blockchain . There is an article on the blog about blockchain technology. I recommend that you read it if you want to have a good understanding of the features of projects that conduct ICOs.
For whom and why is an ICO needed? Let's imagine that you have an interesting idea for creating a fundamentally new product. The product, according to your estimates, could successfully enter the market and gain a foothold in it. The implementation of your project requires considerable investment . But where can you get them if you have nothing but enthusiasm and an idea, no matter how good it is?
Or are you on the other side of the barricades - you want to find an interesting and successful project for investment and make a profit from your investments . But the barrier to entry into many projects is either too high or completely inaccessible to mere mortals.
ICOs are cryptocurrency projects that solve problems on both sides . In short, it works like this:
- The project team issues new crypto coins (hereinafter referred to as tokens ) based on existing blockchain (Bitcoin, Ethereum, Waves), or creates its own blockchain platform;
- The project raises the necessary funds by selling new tokens to investors . In the future, buyers will be able to use tokens in the system developed within the project, for example, to obtain services.
If the project turns out to be very promising, trading ico tokens can bring huge profits. Let's look at the features of ICO in more detail.
Subsequent development
Windows XP added support for 32-bit color (16.7 million colors plus alpha transparency), allowing translucent areas such as shadows, anti-aliasing and glass effects to be displayed in the icon. This OS distribution used 48x48 pixel icons by default in Windows Explorer. Windows XP could be configured to render all icons at 256x256 (by changing the size values in Shell), but selectively editing them was not available. Microsoft technical support recommended setting icon sizes to 48x48 pixels for the XP version.
What is the difference between ICO and IPO?
Let's briefly define the concept of IPO . An abbreviation for initial public offer , literally – initial public offering . During an IPO, shares of a company are placed on the securities market for the first time
This is also a way to attract investment into the company. This is where the similarities between ICO and IPO end. The differences are as follows:
- During an IPO, investors are offered shares of the company, and during an ICO, they are offered tokens , that is, the unique internal currency of the project.
- IPO investors pay for the purchase with fiat currency ; during an ICO , tokens are sold for another cryptocurrency , such as Bitcoin or Ethereum.
- When conducting an IPO, the attraction of fixed assets begins after the company's assets are listed on the stock exchange . Selling assets before the start of trading is also possible. But in this way only the largest and most promising investors are attracted. During an ICO, the project’s tokens are listed on the exchange after the collection of funds necessary for the implementation of the project has been completed.
- IPO process strictly regulated by law and is carried out according to strictly defined standards. At the moment, the legislative framework for conducting ICOs .
- A company that wants to issue shares to IPO, should already have finished product, successfully conduct business activities, have a good reputation. At ICO the company still has no finished product, the organizers only raise funds for the development of their project. In fact, anyone can conduct an ICO if they have a promising idea that might interest other people.
At the time of the ICO, the company itself, as a rule, exists only on paper. The idea for which the ICO was held may turn out to be a failure, and the product will never appear on the market. - The entry threshold for participating in an IPO is very high and can start from several thousand dollars. Almost anyone can participate in the ICO It is enough to have savings, even small ones, in cryptocurrency and a desire to invest in new projects. I wrote an educational program on how to buy cryptocurrency for a beginner. Be sure to read the article if you want to purchase coins profitably .
- By purchasing shares in an IPO, investors receive a share of the company . During an ICO, investors , along with tokens, receive privileges provided by the project organizers.
- To organize an IPO , considerable investments from the company that plans to issue shares. To launch an ICO you need an idea . Most of the financial resources will be raised in the process.
When do they start bargaining?
Completion of the placement stage does not mean that the asset will immediately begin trading on crypto exchanges.
The first to accept new instruments for circulation are trading platforms that operate only with tokens.
If the new asset is in demand, trading on it creates sufficient volatility, and the total capitalization reaches the TOP 100 cryptocurrency instruments, other sites may be interested in the token.
Why do investors and clients need this?
Each participant contributes money or time to each specific project for his own reasons, but common interest allows us to divide the participants into two large groups:
- Investors. All participants who invested money/time into the project at different stages in order to make a profit, both from the sale of coins purchased at a discount at face value, and from trading operations or verified retention in anticipation of an increase in value;
- Users. Since the token is the internal currency of the network being created, a certain number of participants who supported the project, so to speak, for ideological reasons, will use it for its intended purpose, as a payment instrument.
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Terms used in ICO
There are many terms and slang words used in ICOs. I will tell you about the most significant and necessary ones.
- A token is a new cryptocurrency issued by the organizers of the project for which an ICO is being held. Most often, from a technological point of view, such a currency is not completely new, since it is created on the basis of an already existing blockchain. You can find a blog post about the types of cryptocurrencies in which I talked in detail about the classification of coins. Check it out if you haven't read it yet. If the project is successful, token holders will have the opportunity to exchange them for services in the system or receive dividends. If the tokens increase in price after they are listed on the exchange, you can also make money on this.
- White Paper – a detailed description of the project that will be understandable to potential or existing investors. ICO organizers must reveal the essence of the idea, justify its prospects, and explain what makes it innovative. The document also pays attention to an overview of the market and aspects through which the project will be able to occupy its niche.
- DAO or ICO platform is a software and hardware complex for conducting ICOs and issuing tokens. It works on the basis of blockchain technology, most often Ethereum . In addition to the so popular Etherium, there are other ICO platforms, for example, OmniLayer , NXT and others.
- A smart contract is a technology that allows you to conclude contracts safely , without intermediaries, while guaranteeing the fulfillment of obligations by both parties. Such a contract is executed on the blockchain. Due to the universality of the algorithm, smart contracts in the future can be used in all areas of our lives, and not just when working with cryptocurrencies.
- Token standard – compliance of tokens issued on the basis of the blockchain with certain technical specifications. At the moment, the most common standard is ERC20 (Ethereum Request for Comments). ERC20 is a set of rules that, if followed, allow a token to function on the network and interact with other tokens.
- Roadmap (roadmap, development map) is a piece of white paper, a visual plan for the implementation of all stages of the project, tied to specific deadlines.
- Hard cap – the upper limit of the amount that must be collected during the ICO. Occurs in ICOs with a limited supply of tokens, when the organizers know exactly how much they want to sell.
- Soft cap - the lower limit of fundraising, the achievement of which is necessary to launch the project. If the limit is not reached, the project is closed and the funds are returned to investors. As a rule, funds spent on the ICO itself are not returned. This way the organizers avoid losses.
- Jurisdiction is the territory to which the project is tied. The legal entity on whose behalf the ICO is being conducted is registered in a country. This country has certain legislation , which in one way or another governs the activities of the ICO and the project as a whole. For example, taxes and reporting. In some countries it is more profitable to place your project, since more favorable conditions for conducting an ICO have been created there. This is why Russian projects often conduct ICOs abroad.
- Bounty is a reward in the form of project tokens for any contribution to its development. For example, development of software add-ons (applications for smartphones), website design, conducting a full-fledged advertising campaign on a social network. You can also get a bounty for less effort, the main thing is that it helps popularize the project . Registration on the website, posting on social networks, subscribing to news channels - all this also expands the audience of the project. The reward, of course, in this case will be more modest.
- Airdrop – free issuance of project tokens to holders of other cryptocurrencies according to any criteria. For example, in 2022, the first airdrops of OMG were sent to wallets of those who had at least 0.1 ETH in their account. The main goal of the airdrop is to attract attention to the project and promote it.
- Scam is a project whose goal is to enrich oneself through fraud. The organizers deceive investors by launching an ICO for a non-existent startup, present the idea, sell tokens and disappear. The project is not developing, tokens are reset. Unfortunately, there are a lot of such ICOs.
Stages of ICO
Private Sale
The purpose of this stage is to raise funds for the official launch of the ICO . reliable investors at the very beginning , offering tokens at the lowest possible price.
At this stage, organizers usually:
- They make a presentation of the project , as a rule, on the official website;
- Create a white paper with a road map ;
- Developing a legislative framework;
- Draw up a plan for issuing tokens ;
- They are looking for investors and other partners to develop the project.
During a private sale, you can attract key investors , so-called business angels and anchor investors . Angels support the project in the early stages , and not necessarily only financially. Professional advice from an expert in any field or solving technical problems also helps the project get off the ground. The anchor investor is the first to invest in the project an amount large enough for the ICO to instill confidence in other investors in the future.
Pre-ICO or Pre-Sale (preliminary sale)
At this stage, tokens are sold at a price lower than during the ICO itself. During the stage, the main goal is to prepare for the active promotion of the project . To do this, the organizers do the following:
- Issue of tokens;
- Analysis of the interest of the potential target audience of the project;
- Creating favorable conditions for promoting the project, for example, news feeds on social networks.
CrowdSale (crowdsale)
Direct ICO. Funds at this stage are invested through the official website of the project. The stage involves conducting large-scale advertising campaigns and selling the main volume of tokens (or the entire volume in case of a limited release). In the future, it is possible that tokens will appear on exchanges. But this will happen only if the project is successfully implemented and a large amount of investment is attracted.
In the five years since the launch of the first ICO, many successful campaigns . I will tell you about several of them, based not only on the amounts that were collected, but also on the uniqueness and promise of the idea itself.
Airdrop program
This is the process of distributing a small number of tokens for free to as many users as possible.
To receive it, you will need to provide a postal address and a wallet to which the organizers can send the reward.
Throughout Aisio, as well as after it, new proposals and reports on the results are constantly sent out to the collected database of mailing addresses.
The main emphasis is on those who are not familiar with the topic and would like to try themselves as a crypto trader or coin holder, but are not ready to invest money in it.
The distribution is also aimed at those who participate in ICOs professionally. Users who earn money in this way are always united in groups where experience is exchanged and an entire referral network is built. Each new project that distributes a few coins spreads through such groups very quickly, attracting additional attention to the task and to Aisio as a whole.
The mentioned professional ICO participants first became acquainted with this area or tried to turn it into a business through Airdrops.
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Cool foreign ICOs
Brave
A future browser project based on Ethereum smart contracts. Brave offered users to get paid for viewing ads . Sounds unreal, doesn't it? It works like this:
- The advertiser paid for the video;
- Users viewed it in the browser and received rewards along with the development team and investors of the project.
In addition, Brave is characterized by high page loading speed and economical battery consumption on the smartphone. The project currency is Basic Attention Token (BAT) . The team managed to raise $36,000,000 in just a few minutes .
Tezos
One of the competitors of the blockchain is Ethereum. A special feature of the Tezos platform is the rejection of hard forks (drastic changes in the blockchain program code). Developers have the opportunity to propose changes to the protocol. And token holders, in turn, have the opportunity to accept or reject the offer. If the changes are beneficial to the majority of currency owners, the developers will receive compensation for their work. In my opinion, this is a fairly fair policy for a decentralized network.
In addition, Tezos uses a different verification algorithm , in which not all blocks of the network are involved, but only certain ones. This promises to significantly improve transaction speeds. The project currency is Tezos (TXZ) . During the ICO, $232,000,000 was collected in just two weeks . Despite such a successful ICO, the launch of the project was delayed for a long time. It took the team about two years to launch the beta version .
Status
Quite an interesting project of a decentralized messenger for Android and iOS, which is called an analogue of Telegram . It is based on the same smart contracts and Ethereum blockchain. Status is open source and messages are processed directly by the blockchain network.
Here are some features of the messenger:
- Availability of a decentralized crypto exchange;
- Application for concluding smart contracts;
- The opportunity to participate in the ICO with just a couple of clicks.
The project currency is Status (SNT) $102,000,000 was collected .
Successful ICOs in Russia
MobileGo
A mobile gaming platform on the blockchain, focused on accepting cryptocurrencies through Ethereum smart contracts. Essentially this is a market of mobile applications for Android. And in the future, the creators of the project plan to squeeze out Google Play Market . However, part of the market has already been conquered. How? Here are the positive features :
- Lower percentage of payments from income from the sale of applications: 10% versus 30% for the Play Market and App Store ;
- Developers receive payments for app sales faster: a few days versus two months.
The project currency is MobileGO (MGO) . $53,000,000 was raised .
SONM
Supercomputer Organized by Network Mining is a decentralized computing platform built on the blockchain. The essence of the project is that any user who has computing power, even a small amount, for example, on a smartphone, can rent it out. In the future, we will get a worldwide universal supercomputer that can perform any task.
The currency is Sonm (SNM) . During the ICO, the project managed to raise more than $17,000,000 on the Ethereum platform in a couple of hours. $42,000,000 was collected during the ICO .
Voice
A decentralized social network that is a platform for posting unique content that may be of interest to other users. Perhaps the most attractive feature for users is that if the posted content is popular, you can earn quite real money .
Unlike traditional social networks, here:
- User accounts are very reliably protected from hacking
- There is no duplicate content from a bunch of users or communities in the form of the same information presented under different sauces;
- There is no censorship “ from above ” - content moderation is carried out by community users themselves using likes and dislikes;
- Unconditional respect for copyright , ensured by blockchain technology.
The main token of the project is Golos . The ICO helped attract 600 BTC, which amounted to $462,000 at the exchange rate at that time.
Waves Data Feed API (v1.3.2)
REST API server https://marketdata.wavesplatform.com/api/
REST API methods:
GET /symbols — get the list of symbols
GET /markets — get the list of all asset pairs traded, with ticker and matchers info
GET /tickers — get the tickers for all asset pairs traded
GET /ticker/{amountAsset}/{priceAsset} — get the ticker for the specified asset pair
GET /trades/{amountAsset}/{priceAsset}/{limit} — get the last {limit} trades for the specified asset pair. Response includes both unconfirmed and confirmed transactions (there is a confirmed boolean field on each reported tick)
GET /trades/{amountAsset}/{priceAsset}/{from_timestamp}/{to_timestamp} — get all trades (up to a max of 100) between {from_timestamp} and {to_timestamp}
GET /trades/{amountAsset}/{priceAsset}/{address}/{limit} — get the last {limit} trades for the specified {address} and asset pair
GET /candles/{amountAsset}/{priceAsset}/{timeframe}/{limit} — get the last {limit} candles for the specified asset pair and {timeframe} (valid timeframes are 5, 15, 30, 60, 240, 1440 minutes)
GET /candles/{amountAsset}/{priceAsset}/{timeframe}/{from_timestamp}/{to_timestamp} — get all candles between {from_timestamp} and {to_timestamp} with the specified {timeframe}
GET /matchers — get the list of all available matchers
Examples:
https://marketdata.wavesplatform.com/api/symbols https://marketdata.wavesplatform.com/api/markets https://marketdata.wavesplatform.com/api/ticker/waves/btc https://marketdata.wavesplatform .com/api/trades/mrt/btc/25 https://marketdata.wavesplatform.com/api/trades/waves/btc/1493121600000/1493488800000 https://marketdata.wavesplatform.com/api/trades/waves/btc /3PMavPWDSQPWRLVKYRQUKMSYHV6BTC8RNVB/5 https://marketdata.wavesplatform.com/api/candles/waves/btc/1440/10 https://marketdata.wavesplatform/apom/apom/apom/apom/apom/apom/apom/apom/apom/apom/apom/as I/Candles/Waves/BTC/1440/1493121600000/14934888800000
Both amountAsset and priceAsset can be Asset IDs or Asset Symbols. They can also be mixed. Symbols are case insensitive.
Authored by Peter Black.
ICO statistics 2013—2018
As I already said, ICO has been around for five years. Gradually, more and more countries are involved :
And the areas of activity of startups are becoming more and more diverse:
The volume of attracted investments is also growing. Let's see how ICOs have developed from the very beginning.
2013
Historically, this is the year the ICO began. At that time, the term ICO did not even exist. The pioneer was the Mastercoin , now Omnilayer . $500,000 was collected using Bitcoin .
2014
There were only two ICOs. Storjcoin X project raised $461,802 in August. Ethereum was held , which raised $15,571,000 and made it possible to implement many subsequent ICOs based on its platform.
2015
ICOs are still not as popular as they are today, however, inspired by the achievements of Ethereum, three projects have raised considerable amounts of money:
- Bitcrystals — $200 000;
- Augur - $5 300 000;
- Iota — $584 000.
2016
We can say that it was in 2016 that the ICO boom began. A total of $78,638,000 raised . Three leading projects:
- Waves — $16 010 000;
- Iconomi — $10 680 000;
- Golem — $8 600 000.
2017
ICO continues to gain momentum. The total amount exceeded a billion . , $2,445,711,218 were raised in a year . Top projects:
- FileCoin — $257 000 000;
- Tezos — $232 000 000;
- Paragon Coin — $183 000 000.
2018
Although it is still too early to sum up the results of 2022, the results are already very impressive. In total, $6,198,777,656 has been raised so far . Leading in 2022:
- EOS — $4 100 000 000;
- Telegram — $850 000 000;
- tZERO — $250 000 000.
Looking at these numbers, there is no doubt that the popularity of investing in tokens will continue to grow, despite the small percentage of successful startups among the general public.
The first five years became a kind of development milestone for ICOs. There have already been the first serious “rake”, for example, the infamous project The DAO . The goal of the project was really cool - the organizers proposed a decentralized investment management system that would be managed by the investors themselves. Initially, a huge amount was collected - $168,000,000. But the attacker found a vulnerability in the code of the DAO smart contract , and was able to transfer more than $50,000,000 to himself on absolutely legal grounds. Of course, after this the DAO token – the XBT – depreciated in value on the exchange.
During this time, the cryptocurrency community has learned to identify and minimize the risks of investing in ICOs, and many tools have been created for selecting “good” projects.
Risks when investing in ICO
Investing in a startup is always risky. As with other forms of investment, when participating in an ICO, there may be a loss of invested funds or a lack of profit from the investment. Today the following dangers are relevant:
- Vulnerabilities in the code , errors in the smart contract;
- Hacker attacks - hacking a website and replacing a wallet, creating phishing pages ;
- Quite a large number of scam projects;
- The success of an ICO does not guarantee the success of the business itself, even if it is not a scam.
How to evaluate ICOs in this case?
First , you should carefully study the white paper of the project. Ask questions about the idea. Is it really promising and innovative? Is there a ready-made solution to the problem on the market?
Secondly , pay attention to how the company will generate its income. If the scheme for generating income is unrealistic, then you should not expect profit.
Thirdly , take a closer look at the project team and their experience. Do they have experience with blockchain and decentralized applications? Are the tasks they set appropriate for the skills they have?
If the answers to all the questions satisfy you, feel free to invest in ICO! You need to get involved in a “good” startup as early as possible.
Sites for searching ICOs
It is better to obtain information about ICOs from verified resources specially created for this purpose . Trying to directly find a page on the Internet for a project you are interested in may lead to a phishing site. The most popular search resources are briefly described below.
Bitcointalk (BTT)
The main information portal in the world of cryptocurrency is the Bitcoinlalk . The Announcements (Altcoins) branch exists specifically for announcing ICOs . This is where new ICOs often appear for the first time. The announcement post is prepared by the startup team itself, and Bitcointalk managers are already working with feedback from portal users.
ICOgens
The site has a standard ICO calendar divided into active/upcoming/completed ICOs. You can also view the list of ICOs by category.
If you go to any project of interest, in addition to the description, you can see its rating .
Icodrops
site interface is clear and simple. Similar to Icogens, but better structured and overall cleaner.
There is no option to view ICOs by category. The main page also displays ICO listings. Full lists are viewed in the relevant sections. About has a FAQ for beginners .
ICOBazaar
Not just a service for searching for ICOs, but a good information and analytical resource . Here, in addition to a well-structured description of the ICO, you will find:
- Links to many publications about the world of cryptocurrency and the latest news;
- Information about ICO and blockchain experts;
- Convenient ICO calendar with the ability to sort and apply various filters;
- The list immediately reflects the rating of ICO projects .
Before participating in any ICO, watch a detailed video review with step-by-step instructions :
The future of the Waves platform
It is quite possible to assume that in 10-15 years, cryptocurrencies and blockchain technologies will be as familiar as plastic cards are to us today. Already, many people, especially in developed countries, are beginning to resist control by the state and banks. This movement towards decentralization gives rise to many projects, the vast majority of which require funding, which is most logical to look for among the target audience - in the cryptocurrency industry.
It is here, in the field of financing and ICOs, that the Waves platform can take a key position and become one of the leading players in the crypto world, allowing new projects to quickly and efficiently find investments.
In addition to ICO and tokenization, the Waves team is conducting research in the field of anonymous voting on the blockchain, and also plans to develop and implement a secure messenger based on the platform.
Crypto exchanges for selling tokens and withdrawing money
Let's say you purchased tokens of a project. If your goal was the subsequent sale of coins, then after the ICO the question arises: where to withdraw the new cryptocurrency into fiat? Below is a list of the most profitable exchanges for buying and selling tokens.
- Binance;
- Yobit;
- Exmo;
- Cryptopia.
Register on the Exmo exchange
The article-instructions for buying and withdrawing cryptocurrency contains examples of how to profitably sell and buy cryptocurrency, be sure to read it. Here I will just briefly describe how it works. When you buy crypto coins:
- You transfer fiat currency from your bank card to a wallet such as AdvCash ;
- Then from your wallet you top up your balance on a crypto exchange, say Yobit ;
- On the exchange you convert fiat into the desired cryptocurrency .
And when you sell, you do everything in reverse order.
In the case of new tokens, they can be kept on the exchange, waiting for the rate to rise. As soon as the value of the coin has increased, we take profit and sell the coin. Afterwards, the profit received can be withdrawn to a crypto wallet in bitcoins. Or proceed according to the scheme described above - withdraw to Yobit, then to AdvCash and then to your bank card.
Updated structure
What is ICO-32? This format is a 24-bit image with an 8-bit channel added for alpha layout. Thus, masks are not required in 32-bit images, but their use is still recommended for better viewing of the image.
Windows versions XP and higher began using the 32-bit image in True color mode, constructing an AND mask based on the alpha channel in cases where the 24-bit version is not present in the ICO/CUR file. However, earlier versions of Windows interpret all pixels at 100% opacity unless a corresponding mask is provided with an image.
Earning money without investments on bounty campaigns
I have already mentioned in this article the bounty - a reward for contribution to the development of a startup. Most often this means helping the project promote through social networks. For you, I have step-by-step instructions on how to make money on bounty. Read and receive tokens without financial investments ! The article describes in detail where to look for information about bounty campaigns, so I will talk about this briefly below.
Places to Find Bounty Programs
Bitcointalk
Experienced bounty hunters look for programs primarily here. The forum has English and Russian branches. There is also a topic about bounty campaigns , there is a lot of useful information, including for beginners.
There is an opinion that a “normal” bounty can only be found on bitcointalk. However, there are other resources called bounty trackers.
BountyHive
A fairly well-known platform for searching for bounty programs and participating in them. The site is not Russified, but the interface is clear. You can take part in all active campaigns at once, if you want - there are no restrictions on the number of projects . There is no need for reports, the system will automatically check the completion of all tasks.
BountyhunterClub
Russian-language platform , quite reliable. Applications for bounty campaigns are carefully assessed by Bountyhunter’s expert team, and then additional selection by voting by all platform participants.
IcoReward
The tracker is available in English, but is easy to use. There are few bounty companies themselves, but the available programs have many types of work for a reward.
Results
I can say with confidence that the emergence of ICOs a positive impact on our lives . It has become much easier to create, implement and develop innovations, since a new mechanism for raising funds . There is no lengthy paperwork, no initial capital is needed. The fact that anyone can be an investor fuels the interest of people around the world in new technologies. This gradually improves the overall quality of life.
Despite all the risks, the almost complete freedom of the world of ICO investments seems to be the standard of democracy. But this is only before the first encounter with fraud. At the moment, mechanisms for monitoring and regulating ICOs are still in development . I only hope that regulation of ICOs will not make them less accessible.
This concludes my guide to the world of ICOs. Is it worth investing in such startups? Yes. But it is important to remember that even in the case of ideal initial conditions, nothing gives a 100% guarantee of profit . Investing in an ICO is always risky . Anything can happen to a project. You need to carefully study and analyze the market, pay attention to expert statements, and use cryptocurrency news aggregators.
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