How Do I Purchase a Crypto Currency Token in a NEO ICO and What Do I Do With the Tokens after I’ve Purchased?

I joined the Telegram group for one of our NEO ICO clients yesterday. Right after I joined, I received a call via Telegram from this guy in Saudi Arabia demanding to know what he can do with his newly purchased token. Good question, but more importantly how did I get sucked into support? 🙂

When you decide that you want to purchase a token in a NEO ICO, you need to download a wallet that supports crowd sales. For NEO, there are effectively three wallets: the NEO-GUI, the NEON Wallet, and the Aphelion NEON Wallet. The only current version that supports a crowd sale is the Aphelion NEON Wallet, which is the wallet that Aphelion derived from the NEON Wallet.

First, the NEO-GUI is a Windows C# application which is not for the faint of heart. The NEO-GUI is effectively for developers. Even if you’re able to download and build the NEO-GUI, you’ll need to still download the entire production NEO Blockchain.  If you’re doing an ICO, you don’t want your investors downloading and fussing with the NEO-GUI.

Second, the NEON Wallet is a good alternative to the NEO-GUI, because it doesn’t require your end user to download the entire Production NEO Blockchain. This is great! The only problem is the current version of the NEON Wallet, 0.0.8, doesn’t support crowd sales. A previous version of the NEON Wallet, 0.0.6, did support crowd sales, but does not currently work if you’re trying to purchase in a crowd sale. The next version of the NEON Wallet, 0.0.9, is supposed to support crowd sales, but this has yet to be released.

Last, there is the Aphelion NEON Wallet. Aphelion took the NEON Wallet 0.0.7 code and put back in support for the crowd sale that was in NEON Wallet 0.0.6, and most importantly got it to work.

Aphelion then made some changes to address the following questions to try to make the wallet easier for the average end user:

  • How do the tokens get into my wallet?

This is actually a tricky one. Tokens don’t actually get into your wallet. Instead, your keys get written into the NEO Blockchain documenting that you own assets when you participate in a crowd sale.

Let’s walk you through how you make a purchase in a crowd sale. Today, when you want to purchase a NEP-5 based token you navigate to the “Participate in Token Sale” button of the Aphelion NEON Wallet.

The Participate in Token Sale screen will require that you have some NEO, and will prompt you to enter the Script Hash for the token that you’d like to purchase.

 

When you specify the “Script Hash”, and the “Amount of NEO” that you’d like to send, you hit the “Submit for Sale” button. Your call to purchase a token will get routed to a proxy, which will then route your NEO to the NEP-5 smart contract. The smart contract will then determine if the crowd sale is valid. If the crowd sale is valid, then your buyer address and the number of new tokens that you’ve purchased will be written to the smart contracts storage on the NEO Blockchain. No data is actually written to the Aphelion NEON Wallet. Your data is written to the NEO Blockchain. The wallet is effectively an application that holds your private key, and enables you to query the Blockchainto see what tokens your buyer address has in the NEO Blockchain without having to write code .

  • How do I access the tokens after I’ve purchased them?

In the Aphelion NEON Wallet, once you’ve acquired the tokens via either a pre-sale or an ICO, you’re able to view them when you login to your account. Right now, RPX and APH are supported out of the box. New NEP-5 smart contract script hashes can be added and persisted.

  • What can I do with my tokens once I’ve purchased them?

Well, this one is still a little tricky. In the Aphelion NEON Wallet, we added support for you to be able to transfer your tokens to different accounts. The transfer is actually interesting. What’s actually taking place under the hood is the smart contract is being updated to state that your buyer address has a new total amount of tokens, and the send address has a new total amount of tokens. Again, all transactions are written to the NEO Blockchain.

In the future, for these NEO ICOs, you should be able to trade these tokens on exchanges. RPX is already up  https://coinmarketcap.com/currencies/red-pulse/