Funds are held by Iconomi middlemen in Slovenia
MelonPort = Decentralized
Tokens that represent shares of the various melonport investment funds can be be held in cold storage
The assets that will be included in the various melonport investment funds will be held in Ethereum smart contracts.
Melonport only works with ERC20 tokens, so you have to trust this centralized company to hold all the BTC and fiat:
https://www.decentralizedcapital.com/#/about
If it's not connected to centralized exchanges there will be no liquidity for fund managers.
No dividends and the supply inflates by 25% to 50% per year indefinitely.
From an ROI potential, let's not forget that:
Iconomi = Security Token = Cannot be listed by Poloniex
MelonPort = Usage Token - Can be listed by Poloniex
Iconomi devs are waiting until both ICNX and ICN tokens are in circulation before pushing to get them both listed on additional exchanges.
If you follow Bittrex slack, you will see that Bittrex wanted to list ICN, but ICN devs told them they didn't want to be listed on additional exchanges yet.