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 2017   3147

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:

  • Website
  • Whitepaper
  • Medium
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  • LinkedIn
  • Bitcointalk

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Top Ongoing ICO 15th -21st July

Check these cool new ICOs: Property Coin, EVO, Kryptoin, eCoinomic, unitalent, Cosmecoin, Blockchain.io
13 July 2018   30

Every week we find a large number of projects which are holding Initial Coin Offerings in order to be able to bring their incredible ideas to life. There are a lot of news regarding ICO and cryptocurrency, and we do our best to report about the updates released, or the crypto conferences held all over the world. And now it’s time to look at the ICO market! In a list below you will find our reviews of the projects we consider worth looking at this week. As you already know, Hype.Codes team is working hard to deliver all top-notch ICO news!

Current list for quick navigation Property Coin, EVO, Kryptoin, eCoinomic, unitalentCosmecoin, Blockchain.io

Ongoing ICO

Don’t forget to read to the bottom and take part in our poll about upcoming ICOs.

1. Property Coin 

Hype.Codes rate  92

Property Coin (PCX) is the first security token backed by a professionally managed portfolio of fix and flip real estate and loans. PCX is managed by Aperture, a California-based real estate technology and investment company. 100% of profits from investing in real estate assets will be reinvested, buying additional real estate assets for tokenholders, which should increase the market value of PCX. Property Coin merges traditional securitization technology into the coin format, and is being created in conjunction with one of the most respected law firms in structured finance. We have been beta testing our systems and methods since 2016, making real world property investments with our own capital. This testing has resulted in the rejection of approximately 99.8% of available investment opportunities and we select only 0.2% of opportunities viewed. To date we have produced over 50% unlevered IRRs on our investments.

Vote for this ICO

Sales dates: May 1st 2018 -  Jul 31st
Accepted currencies. ETH, BTC, USD
Hard cap $50M
Website and Whitepaper 

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2. EVO 

Hype.Codes rate  90

Robotics, neural networks, blockchain – these technologies create a new era. How can an ordinary person remain competitive? We combine the best tools and partners services that help a person to achieve his goals in career, personal life, interests. The user gets the gamified application that motivates him to develop, achieve new levels in his skills and get tokens - Etalons. Activity on personal development is entered in blockchain. The application of the user digital portrait on the network: - Career - Meetings - Communities - Groups and private clubs - Bloggers The EVO.Pro is the project direction on creation of the educational and recruitment platform to assess and develop professional skills and personal and business qualities (at the launch stage). In EVO.Pro segment we form a large-scale self-sufficient solution for the professional sphere and education, and also create the foundation for spreading the EVO.Live concept to all spheres of human life in the future. EVO.Live – project direction on human development in other areas of life, including leisure, sports, creativity, charity, personal development (launch in 2019).

Vote for this ICO

Sales dates:  May 1st - Jul 31st (Pre-ICO)
Accepted currencies. BTC, ETH, LTC
Soft cap $4M
Hard cap $8.5M
Website and Whitepaper 

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3. Kryptoin

Hype.Codes rate  82

The Kryptoin ETF System is a patent-pending platform that enables a digital token to be exchange-traded with a basket of cryptocurrencies that represents any index or sector. The ETF application integrates with any blockchain to enable that cryptocurrency to be included in the exchange trade. All ETF tokens are inherently asset-backed. The smart contract is utilized to bind specific requirements of the in-kind exchange creating a decentralized asset management system. Kryptoin ETF Tokens behave like traditional ETFs found on a stock exchange but the underlying assets are digital currencies. They are exchange traded by a Kryptoin Trading Desk and can be liquidated on a digital exchange. ETFs tokens can be assembled to track any index or benchmark of any sector or niche market globally.

Vote for this ICO

Sales dates: May 1st - Sep 1st (Pre-ICO)
Accepted currencies. ETH
Soft cap 28557 ETH
Hard cap 114311 ETH
Website and Whitepaper 

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4. eCoinomic  

Hype.Codes rate  85

We consider cryptocurrency as a new perspective type of collateral that can change the market for secured loans tremendously. An important shift in the lending practices supports the growth of the crypto world beyond the limitations, providing individuals with increased purchasing power given by crypto backed loans. Institutional investors and family offices are always interested in new low-risk instruments with high profitability. And crypto owners wish to benefit from their digital assets and preserve them for the long term hoping to gain more value. The smart contracts on the eCoinomic.net platform will solve these needs. Crypto owners will get an opportunity to obtain fiat loans using digital assets as collateral. Institutional investors and family offices will explore a new mortgage market by issuing fiat loans to crypto community. 81% of the funds gathered during the Token Sale will be used to form the Reserve.

Vote for this ICO

Sales dates: May 1st - Aug 1st (Pre-ICO)
Accepted currencies. ETH, BTC, XRP, BCH, LTC, NEO, XMR, ZEC
Soft cap $6M
Hard cap $106M
Website and Whitepaper 

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5. unitalent 

Hype.Codes rate  80

unitalent is a Swiss blockchain enabled freelancing platform. It gives access to high-skill freelancers, allows direct peer-to-peer contracts between freelancers and corporate clients, and distributes project rewards transparently with smart contract secured transactions. unitalent is a highly scalable platform that will ease the transition to independent work, increase efficiency and is a win-win for workers, companies, and the economy.

Vote for this ICO

Sales dates: May 1st - Sep 31st
Accepted currencies. ETH, BTC, Fiat
Soft cap $5M
Hard cap $20M
Website and Whitepaper 

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6. Cosmecoin 

Hype.Codes rate  79

iConsult Software Limited has developed an ERC20 token which will run on the Ethereum blockchain for use within the cosmetic and aesthetic medical beauty sector. The token will be used as a means to connect patients and consumers with trusted partners, recording the process, protecting all parties and rewarding best practice and engagement with a Cosmecoin (COSX) token. Connect – Record – Protect – Reward. Cosmecoin (COSX) are reward based tokens which utilise smart contracts to reward patients/consumers and practitioners by providing a token which can be traded for products and/or treatments through our network of partners and brands thereby also encouraging customer loyalty to those participating partners and brands.

Vote for this ICO

Sales dates:  May 10th - Nov 10th
Accepted currencies. ETH, BTC, LTC, USD, GBP, EUR
Soft cap 2M GBP
Hard cap 5M GBP
Website and Whitepaper 

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7. Blockchain.io 

Hype.Codes rate  80

Built on Paymium’s proven security and technological record. A high level of digital asset protection and safe record of transactions.Built on fair-exchange protocols enabling cryptocurrency atomic swaps to mitigate counter-part risk.Advisory and technology services to execute third-party ICOs. New listing and market making services to foster enhanced token liquidity.

Vote for this ICO

Sales dates: May 14th - Oct 14th
Accepted currencies. ETH, BTC
Hard cap 60M EUR
Website and Whitepaper 

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Hype.codes team works everyday to bring you the best reader’s experience. We are trying to add some new cool features every day. Hype.Codes Rate is average, abstract ranking of ICO, that we give to every upcoming ICO. It depends on such criteria:

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Voting for the best ongoing ICO 15.07 - 21.07

We are constantly updating the list of top ongoing ICO and we would like you to share some thoughts on which ongoing Token Sale from 15th to 21st of July a is the most appealing to you. Which one seems interesting for you to invest your funds, and which one, in your opinion, will bring the most profit? Please, select one of the options below.