How to conduct a secure ICO?

Sergey Besedin, the founder of Decentralized Escrow project talks about the methods of providing security for ICO, eliminating risk of losing funds and the problem of ICO regulations
05 December   1598

Initial Coin Offerings create liquidity and growth equity without giving up equity in most cases. The popularity of ICO is growing rapidly nowadays and there are a lot of projects which are running ICO in order to raise funds to implement their ideas. But how to make the ICO safer for all participants and eliminate the distrust of the potential investors to the new startups?

In order to find answers to those questions, we spoke with Sergey Besedin, the founder and CEO of Decentralized Escrow, which is a unique decentralised escrow platform for conducting ICOs.

 Sergey Besedin the founder and CEO of Decentralized EscrowSergey Besedin, the founder and CEO of Decentralized Escrow

- Please share with us the core idea of your project. Are there any DES competitors or startups that aim to solve the same problems? What is your competitive advantage?

Descrow - is the world’s first platform for secure ICO-investments with an inbuilt mechanism of decentralized escrow, which allows the backers to control the spending of the finances via voting. Our project’s mission is to make ICO the less risky way of investments and eliminate the excessive distrust of the potential backers to the new startups, giving a boost to the further ICO market growth. Every working platform that attracts funds for projects could be named as our competitor. But it is only on the surface, as such platforms massively use traditional process for obtaining the objective view on the subject of investments - Due Diligence. We are not neglecting this approach to ICO campaigns potential valuation, but in our platform it will be only the first, the small part of the startup assessment process.

We are focusing on splitting the financing into stages, which will allow us to ensure trust towards a startup on a technical level, without a need to rely on the individual experts' valuations, which could be partially subjective due to the human factor. Currently on the blockchain market the decentralised approach towards ICO valuation does not exist, and we are creating this new and comprehensive tool.
 

Sergey Besedin
CEO and founder, Decentralized Escrow

- How did the pre-ICO go? How does the preparation for ICO launch go? What are your expectations?

- We find the first investment round quite successful, we have received approximately 1000 Ether during Pre-ICO. At the moment we are in an active ICO preparation stage for a new investment round, during which we plan to attract 13 million dollars.

- How do you plan to allocate these funds?

- The funds raised during the ICO will be allocated to the development of full functionality of our platform, international marketing campaign, central office and representative offices establishment, mobile version of the platform creation, launching the Descrow on other blockchain platforms, formation and launch of initial reserve fund, integration of the Descrow solution into other crowdfunding platforms, the development of the specified DES blockchain for conducting ICOs enhanced by automated funds splitting mechanism powered by artificial intelligence and neural networks.

- When will the platform be launched?

- In the second quarter of the year 2018 (Q2 2018).

- At what stage is the system development at the moment?

- At the moment we are making final adjustments to the technical design specification with our developers.

- Are there any projects that are waiting for DES launch in order to launch ICO within Descrow platform in particular?

- Yes, we are already receiving the inquiries from the startups, which are planning to launch their fundraising campaigns using the Descrow solution. Furthermore, we are announcing with pleasure the partnership with the decentralized exchange platform and ecosystem DEEX.EXCHANGE, which is starting pre-ICO in the nearest feature. As part of our partnership all ICOs, launched on DEEX, will use the Descrow solution. This guarantees the investors full control over invested funds and secured returns.

- Why did you choose Ethereum as a Blockchain platform?

- Descrow is the solution that will serve its function for the maximum number of people. We are striving to expand Descrow instruments on the whole crowdfunding market. Only this approach will allow us to achieve the main goal - the change in the investor mindset “how to invest not to lose money and at the same time to motivate startup to deliver upon their promises till the end”.

Currently Ethereum is the most popular and widespread decentralised data base used for Token launch and funding. That is the reasoning behind our choice. We will not limit ourselves by using only one blockchain platform and on the next stages we are going to expand the solution to other blockchain platforms used for Token launch and smart contracts.
 

Sergey Besedin

CEO and founder, Decentralized Escrow

- How does Descrow provide security for ICO?

- We provide the secure solution for our investors for two following reasons. First is all, the Startup will not immediately receive all the funds, which were raised during ICO, but only the pre agreed amount necessary to start the project. It mitigates the risk of losing funds in case of disreputable startup acts. Secondly, the funds in waiting for the second tranche are not deposited in one place (like the common start contact) but are stored as frozen on the individual investor wallets. This characteristic protects the funds against cyber attacks or the database breaches.

Decentralized Escrow scheme for start-upsDecentralized Escrow scheme for start-ups

- Will you develop a specific startup pre-ICO valuation mechanism?

- Yes, we will carry out the preliminary Due Diligence in order to avoid cluttering up the platform.

- What projects could be refused to be listed within the platform?

- The projects, that do not split the process of realization/ final product creating into stages - this is the main fundamental condition of the platform.

- To what extent the majority voting system could be effective when it comes to investing?

- When it comes to investing (to the matters of personal finances) this approach will work very well as negligent attitude is out of the question. The principle “measure seven times, cut once” will be applied at full capacity.

- Can investor withdraw the funds during any stage of the project roadmap implementation, if he/she does not agree with  the majority voting results at this stage?

- No, it is not possible, for the majority voting principle is applied to secure the highest probability of quality decision, because the majority is not influenced by a couple of individuals or the minority, which for some subjective reasons (or under force majeure event) might not be able to evaluate in an unbiased manner.

- How do you think, will the ICO hype quieten by the project launch moment?

- The hype will quieten in case of strong regulation and market consolidation in the hands of the limited number of big players, as it is now in the IPO industry. But that outcome will kill the core ideology of crowdfunding and individual investments in advanced breakthrough technologies. Our opinion is that even at this case the market will find the solutions to be free from regulators restrictions.

- According to your opinion, in case of decline in the number of ICO launches, what market share will Descrow secure?

- At the moment Descrow project is building the core solution, which due to its reliability, will be used by the whole crowd funding industry, - especially with the growth of distrust and failures to comply with the undertaken obligations by the startups. Investors are forced to seek alternative solutions for secure investments, which at the moment are not yet at the market. We are building this complex solution to meet the industry need.

Starting with a minimum of 5-10%, with distribution, popularisation of ideology and with integration with different blockchain platforms, we are aiming to secure 30-40% of the market and we are not resting upon it.
 

Sergey Besedin
CEO and founder, Decentralized Escrow

- What determines the choice of jurisdiction to set up a company in?

- The choice is determined by the following factors: Estonia is a full member of the European Union and it is the leader in the field of regulating the cryptocurrencies exchange. We are attracted by the government positive attitude towards the blockchain projects. Apart from that, Estonia is already a leader in the field of practical application of blockchain technology, including the application within the government sector.

- How do you assess the risks associated with a possible conflict between ICO regulations in some countries and the platform core operating principles? Do you have the risk mitigation plan for this scenario?

- Descrow platform provides a service to launch step-by-step fundraising campaigns. The platform itself is not launching or organising ICOs for startups. Therefore, the mentioned risks are on the startups side. Concerning the platform operations under different jurisdictions, the need to obtain licenses will be determined separately in each case based on economic attractiveness of each jurisdiction.

More information about Decentralized Escrow project you can find here:

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Blockchain to Decentralize Software Development

From this article you will learn how Ellcrys will create a collaboration network for building open source software products collectively using blockchain technology
22 January   92

Current web service providers limit organization accounts to only support a single owner who is granted unlimited access to add and remove users and manage the account and all resources. This is a fundamental issue that needs to be solved before decentralized, effortcentric internet organization is possible. On Ellcrys, a git repository is the centre of all collaborative endeavours, which is multiowned, and anyone can fetch its content, push contributions, verify and vote for pull requests and other proposals.

What is Ellcrys?

Ellcrys is a blockchain network that will allow anyone in the world start, join or contribute to open source software products and receive compensation for their contributions. Users will be able to create decentralized Git repositories that are censorship resistant, highly available and can be truly owned by multiple persons. Repositories can include all kinds of codes for different purposes such as web services, smart contracts, mobile apps libraries/packages, frameworks etc. Ellcrys blockchain decentralizes a git repository by bundling and distributing git objects across the network.

What is a Source-Level DAO?

  • A Source-Level DAO (SDAO) is a democratic enterprise where a decentralized source code repository is the epicentre of all collaboration and governance activities
  • Source-Level DAOs are a living, constantly evolving repositories that allow anyone in the world to contribute their skills (coding, design, testing etc) to a shared goal
  • Source-Level DAOs can be executed as smart contracts or deployed anonymously to AWS, Heroku etc
  • Source-Level DAOs deployed on centralized systems run autonomously without interference from the DAO contributors
  • Centrally deployed SDAO are extremely scalable and are deployed from the blockchain

SDAOSDAO

Ellcrys advantages

  • Decentralized Git Host: To enable open, trustless, democratic collaboration, Ellcrys leverages Git to allow anyone around the world to easily contribute to a project. Ellcrys blockchain decentralizes a git repository by bundling and distributing git objects across the network.
  • Polyglot App Hosting: Ellcrys is taking an approach that will bring transparency at the repository level. Collaborators collectively contribute to a repository and create proposals that authorizes any centralized polyglot hosting services of their choice, deploy and configure their application directly from the blockchain.
  • Smart Contracts: Ellcrys smart contracts are repo-addressable; This means that transactions are addressed to the repository they were loaded from as oppose to the contract address. Ellcrys will support development of smart contracts using languages such as Javascript, Go, Ruby & Python.
  • Open Source Software: Ellcrys will allow open source projects the ability to create paid branches that attract a fee to fetch. Maintainers and contributors can benefit from paid issues created by users. Contributors will earn coins when their pull request is accepted by project’s community.
  • Software Outsourcing: Ellcrys will level the playing field by allowing anyone outsource their software projects, set price as low as they can afford and allow independent developers take up task based on their preferred pricing.

Ellcrys RoadmapEllcrys Roadmap

StackMint Technology

New coins are introduced into the network through a process known as StackMint. StackMint is one of the fairest method of global coin distribution in that it allows anyone in the world to exchange national banknotes for new coins.

  • Anyone in the world can take a photo of any supported banknote using a mobile phone
  • Send the photos of banknotes to a network node for validation
  • Node on network analyse banknotes and rejects invalid banknotes
  • A second validation phase requires users to validate banknotes manually, users bet some coins and provide a validation result for a banknote
  • After validation and acceptance of the banknote, new coins are created and shared between the owner of the banknote and the validators

Ellcrys Stackmint TechnologyEllcrys StackMint Technology

Ellcrys Token Sale Information

Ticker: ELL
Pre-sale. from Feb 1, 2018 to Mar 1, 2018
ICO. from Mar 30, 2018 to Apr 30, 2018
–Token price. Pre-sale. $0.08
ICO. $0.1
Total Supply. Pre-sale. 800,000,000
ICO. 900,000,000

Ellcrys Tokens DistributionEllcrys Token Distribution

Soft Cap. Pre-sale. $1 Million
ICO. $5 Million
Hard Cap. Pre-sale. $30 Million
ICO. $55 Million
Bonuses. up to 35%
–Accepted currencies. BTC, ETH

Ellcrys Advisors

  • Victor Asemota - Co-Founder, Director at SwiftaCorp
  • Emeka Okoye - Senior Semantic Web Architect at Cymantiks
  • Lanre Oyedotun - Co-Founder/CEO at Delivery Science Inc
  • Chuka Ofili - Co-Founder, Chief Enterprise Architect at Delivery Science
  • Ebot Tabi - Senior Technical Consultant at Andela

Documentation

  • Whitepaper
  • GitHub

More Information

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