Topic: New ICO & IEO investment model. What do you think about it? (Read 291 times)

whatever you say, we appreciate it and we don't know the next story in this market or maybe like the advice you mentioned above. in my opinion there is no perfect way to get rid of scamers in this industry, scamers are increasingly rampant and scamers come when you are careless or like you are feeding crocodiles.

If this is true, then my model is even more relevant because my model is able to prevent scams. Also, it does not have a conflict of interest in the current conditions.



Sorry, but you're wrong here. Decentralization is good, but it does not solve all problems. We see this in the example of cryptocurrency fraud projects. Decentralized cryptoinvestors do not distinguish good projects from bad ones, therefore they lose money. In addition, not everything that is centralized is corrupt. In my model, the venture capital fund that leads the project necessarily invests its own money. The venture capital fund will also lose money in the event of failure or fraud. Therefore, honesty and decency are not the issues in this case. This is a matter of common sense.



As I wrote above, I know how to motivate such people to come to the cryptocurrency market. Please let me solve this task.

Seems like a complete waste to me. So basically I'd choose to have someone else buy into an IEO or group of IEOs for me? I mean, why can't people do that for themselves directly and bypass the middleman? If it's a scam, they'd get burnt either way, just doubly so by using the investment model proposed.

What could work, but is outside of the realm of random posters here, are investment vehicles into crypto related industries that otherwise would be difficult to buy into directly. Think a Crypto ETF -- but instead of coins, it'd be investments into exchanges, blockchain companies, hardware companies and so on. For all I know such a thing already exists... but I am thinking more of companies that have gone private and is difficult to buy into unless super rich.

you are wrong. IEO not only didn't reduce scams but also it increased it. it may not look like it now because overall fundraising schemes are not as many as before. for example if we saw 10 new tokens every week in 2017 we are seeing 1 or 2 every month. that doesn't mean scam is reduced that means the overall number is reduced. scams are still ongoing and exchanges that have taken control are being bribed to let the scams go unnoticed.

it is not better, it is worse.
anything centralized that one authority has the power is going to be corrupted sooner or later because they won't be able to make enough money in this manipulated market. so they will end up receiving bribes to help the scammers. exactly what ICO benchmarks/advisers or whatever they called themselves ended up doing. and exactly what exchanges are doing now.

i disagree on two things. first investing in cryptocurrencies and projects is not risky at all. investing in shitcoins and altcoins with no reason is risky because you are investing in pump and dumps.
as for "experts" you named, such people won't waste their time on this manipulated market that according to you has high risks....

Yes, it is possible. In fact, I'm talking about this.



P.S. I want to decide on my own where I will invest. Why should I give this decision to the venture capital fund? - You decide whether to invest in a specific project or not. No one takes this right from you. The venture capital fund offers a number of projects that have passed the audit. If you like project ideas, you invest in them. If you don't like them, you don't invest. You always make the final decision.

It is a novel idea but I think most of these concerns have been addressed already through Top exchange IEOs yet it doesn't necessarily stop the scam, or project bankruptcy which sown the line and ultimately makes members of the community loose funds. Furthermore, leaving investment decision making to a few venture capitalists will spell control which wouldn't go down well will everyone and crypto as regards decentralization

this has already been discussed on the forum. guaranteed 100 percent nothing is honest. there are IEO projects that SCAM. I watched them myself. take for example the project VeraExchange-pure Scam.

Sounds great, at least on paper, but the better question is what is the cost of such action? I mean, even if there would be such an opportunity, there would several thousands free tokens for sell among regular users which will cause the same situation that happened on first Binance IEO.

I answer the discussion questions and discuss the benefits of each idea:


1. IEO has already stopped the scam. Why do I need a venture capital fund? - IEO reduced the number of scam projects but did not completely stop them. In addition, the cryptocurrency exchange does not provide investors with a full-fledged legal structure. A venture fund provides expertise from investment professionals and can perform this task better.


2. Why is a venture fund better performing this task? - A venture fund has more resources and experience than a cryptocurrency exchange or private crypto investor. The venture fund invests its own money in the project, so there is more interest project's success. A cryptocurrency exchange is just an intermediary between the investor and the project. A venture capital fund invests with you and shares your interests.


3. Even without a scam, the project may fail. Can a venture fund protect against this? - No, it cannot. Cryptocurrency projects are risky investments in any case. But the venture fund team consists of entrepreneurs, analysts, financiers and lawyers who use their collective expertise to find and work with quality startups that have a high probability of success. They communicate with each project's team personally. They have an understanding of what they are investing in.


4. What is the main advantage for me as a crypto investor? - You will invest alongside professionals. You will know with certainty that the sharks of the market have entered this project, and you will significantly increase your chances of success.


5. Is it possible to implement such a model? Will venture funds be interested in the model? - Implementing such a model is difficult. But it is possible, and I know how to do it. It requires a lot of resources and time. So first, I would want to make sure that you are interested, and after that, we could proceed to work on an implementation of the concept.


If you're interested, write "This is a cool model" in the comments. If you have questions, then ask them. I'll answer.

This is a brilliant idea but you should also know that IEOs were introduced into crypto space just to provide your suggested solutions. IEOs are meant to check and eliminate scam projects by the exchange platform running the IEO. But I also think investors should also spend their own time researching about projects before even thinking of investing into them.  

IEO is a good way to collect funds, BUT if it is only done on a well reputed exchange. There are lots of exchange that promotes IEO with fake numbers this is just for the sake of business. With IEO it is really important if you want to invest to it is when it is listed on good and huge exchanges that already established their reputation.

I agree, the project will be known as a scam at the final stage after the sale period ends, while projects that have been listed on the exchanger even though the price falls far below the sales price cannot be categorized as a scam. In this case IEO might be safer even though the risk is the initial price at the exchanger is below the IEO price but at least the token listing in the market.
But there are also many good ICOs that can achieve sales targets even though the market conditions are not good and this is usually because they have partnerships with various companies or do have products.

Actually we need to find the scam ones not non scams. Even so we will know about a few of them among hundreds of ICOs/IEOs which all of them not scam. We need to find the ones that are scam so we can find the potential ones among non scam ones. Because ICO/IEOs it finds will make a giant market tiny. Besides you can easily join IEOs in the big exchanges because they are more serious in this matter.

Yes, we are willing to pay for the project analysis team service. but the team must ensure the knowledge of team analysis and the idea of the project must ensure and can ensure litigation always when there is a problem between the CEO and investors.
The service side must work very professionally in order to gain the confidence of investors, because the investors themselves also have their knowledge and experience in project analysis.

Sounds very ideal but i don't think that the entry of any venture capital fund into a project would guarantee a no risk scenario taken by cryptoinvestors!

I saw many promising projects even with fully functional platforms that haven't shown any significant returns to its investors since the market is the one dictating the token price and there is nothing investors can do to avoid it. For example, some projects even with funds from private investors offered an ICO price of $0.10 per token but when it was listed on an exchange, the current price did not go above its ICO price, and in fact nose dived as a result from early investors dumping their tokens. It may protect against fraud but their will always be a risk associated in any of our investments.

In my opinion, it is currently difficult to distinguish between ICO and IEO investments without a scam. because the ICO and IEO scam or not we only know when a project ends. we must be careful in investing in ICO or IEO. one thing we must do before investing is we must be able to analyze as much detail as possible.

Yes, if IEO made in a good or well-known exchange is indeed a potential for a little scam, but if IEO is made in a new exchange or an unfeasible exchange, then the potential for a scam is also large, so now even though there are options in IEO, which however, further analysis of the project is also needed, so as not to get caught up in the scam IEO project.

It depends on the exchange that runs the IEO, not all of them are legit. Let's take a look at Idex for example, they have scammed a few companies before https://bitcointalksearch.org/topic/idaxpro-scammed-another-company-5160753. Because of this accident even a legit project forced to close their business because of this, they need to sustain everything while they do not have initial funding. Do not believe any IEO 100% because nobody can guarantee you anything, always do your own research. If some unknown exchange is doing an IEO on their platform, it is best for you to not participate in it. The probability for you to get scam is high

How about those venture capitals that are also connected with the project they are selecting? It could be do some insider if that will do.
We can also consider that as IEO or something like ICO.

And what about that small person with having low funds or entity that want to invest in a particular project?
Because for sure if that will do, their limit each entity or person is something huge, especially in the minimum funds to be invested in the project and maybe there could be a maximum limit.
And lastly, there could be a huge share for sure from the project team and the venture capital that will manage their project.

I just agree with what you are talking about, but according to me only quality projects can avoid scammers, because many projects just want to profit alone.

I think that's completely unnecessary. Really, I don't see the point. Bear in mind that I'm not talking about ICO but IEO.  Some funds tried to achieve such but can you guessed how it turned out? You prolly guessed right, It went sour.




Exchanges already took the pain of finding out the projects to launch in their token launchpads.



Come Clean on this one, Don't make guarantees just to lure unsuspecting users to join in.  Everyone might not benefit. And I'm sure the venture funds will charge fees. What if the IEO or ICO doesn't perform well? What happens in such cases?

IEO is already a model where you don't have to worry about fraud or scams. Just saying. It also ensures that only good quality projects are offered, as far as anyone can tell with crypto projects.

Hi guys! I have an interesting idea. I think I know how we are able to stop scam in the ICO & IEO market and improve our investment opportunities.

***

What would you think about an ICO/IEO model where venture funds invest with you?

In this model you would not need to worry about fraud, nor poor quality projects. The venture fund will select projects and choose only the most promising. They will also provide a legal framework that will protect the funds of the cryptoinvestors.


The model works as follows:
1. The venture capital fund seeks a promising project.
2. The venture capital fund uses its own professional infrastructure to verify the feasibility of the project and the integrity of the founders.
3. The venture capital fund invests its own money in the project to confirm the quality of the work performed. The size of the fund’s investments is at least 10% of the required amount.
4. The rest of the ICO or IEO is invested in by private cryptoinvestors.
5. Private cryptoinvestors pay a commission to the fund for their services.


Thus, private cryptoinvestors receive:
1. Protection against fraud
2. Quality projects
3. Legal protection of rights
4. Access to the professional expertise of a venture fund


The venture capital fund will receive additional financial leverage and additional profit from the commission. Promising projects will receive money for development. Everyone will benefit. Everyone will be able to earn money.

What do you think about this? Would you agree to participate in such model?


Update.

I answer the discussion questions and discuss the benefits of each idea:


1. IEO has already stopped the scam. Why do I need a venture capital fund? - IEO reduced the number of scam projects but did not completely stop them. In addition, the cryptocurrency exchange does not provide investors with a full-fledged legal structure. A venture fund provides expertise from investment professionals and can perform this task better.


2. Why is a venture fund better performing this task? - A venture fund has more resources and experience than a cryptocurrency exchange or private crypto investor. The venture fund invests its own money in the project, so there is more interest project's success. A cryptocurrency exchange is just an intermediary between the investor and the project. A venture capital fund invests with you and shares your interests.


3. Even without a scam, the project may fail. Can a venture fund protect against this? - No, it cannot. Cryptocurrency projects are risky investments in any case. But the venture fund team consists of entrepreneurs, analysts, financiers and lawyers who use their collective expertise to find and work with quality startups that have a high probability of success. They communicate with each project's team personally. They have an understanding of what they are investing in.


4. What is the main advantage for me as a crypto investor? - You will invest alongside professionals. You will know with certainty that the sharks of the market have entered this project, and you will significantly increase your chances of success.


5. I want to decide on my own where I will invest. Why should I give this decision to the venture capital fund? - You decide whether to invest in a specific project or not. No one takes this right from you. The venture capital fund offers a number of projects that have passed the audit. If you like project ideas, you invest in them. If you don't like them, you don't invest. You always make the final decision.


6. Is it possible to implement such a model? Will venture funds be interested in the model? - Implementing such a model is difficult. But it is possible, and I know how to do it. It requires a lot of resources and time. So first, I would want to make sure that you are interested, and after that, we could proceed to work on an implementation of the concept.


If you're interested, write "This is a cool model" in the comments. If you have questions, then ask them. I'll answer.