The year 2017 was the year of the ICO boom, a way of the projects’ crowdfunding based on the start-ups’ sale their own cryptocurrency, tokens, as a rule, using smart contracts on Ethereum blockchain. ICO is held for financing the starting the entire businesses, rather than specific goods or services, and attracts the opportunity to quickly test their idea in public and, in the case of a positive reaction, get financing for it on sparing, compared with practically any other sources of funds. The projects have to think immediately how to convince users to participate in their crowdfunding and buy tokens. As a rule, almost all ICOs solve this issue by laying a mechanism of getting benefit from the launch or development of a project financed by them to their tokens.
The question is: what’s next? One more ICO was held, the tokens were bought sold. How will the tokens continue to work? What impact will they have on the business, financed by them? The answer is disappointing: many ICO tokenization systems contain the conditions for the inevitable conflict of interest of the token-holders and the project itself.
Those who conduct ICO should start thinking about the last token-holder in advance: if the token carries some profit, its fate should be thought over until it runs out. If the token performs a function, what will happen when it becomes unsuitable for it should be thought over too. All potential ICO participants should be told what the project plans to do with it.
Decidex proposes you a full redemption of tokens. Our solution to the problem of the “last token-holder” is to include in the roadmap the possibility of a full redemption of tokens upon reaching a certain stage or indicators of business development after ICO. The received proceeds can be directed on full redemption of tokens. This does not deprive Decidex users the ability to trade — it just complements it with a universal exit strategy.
In most cases, the ICO market today is a market of speculation. We are able to correct the rapidly deteriorating reputation of the world’s ICOs — becoming more transparent, more serious and more responsible towards both those who supported us and to themselves.