What's the Point of ICO Escrow? - page 3.

rafajunior99

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Quote from: olushakes on January 11, 2017, 01:39:10 AM

I have actually learn from this thread in understanding how this escrow of ICOs work but the issue of release of funds is what I am yet to understand

1. What if the developer approached the escrow that " I need 1btc to pay for marketing won't he still provide"?

2. Also I think more should still be done by the escrow in the sense that the funds should still be held and released in batches if the coin is gradually leaving up to expectation. This will reduce drastically the issue of developers getting the fund then abandon the project and move to another shit coin.

it seems you need to know and see how it works and whether he is responsible for his work, the most important of escrow is whether he is honest about handling your project.

olushakes

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I have actually learn from this thread in understanding how this escrow of ICOs work but the issue of release of funds is what I am yet to understand

1. What if the developer approached the escrow that " I need 1btc to pay for marketing won't he still provide"?

2. Also I think more should still be done by the escrow in the sense that the funds should still be held and released in batches if the coin is gradually leaving up to expectation. This will reduce drastically the issue of developers getting the fund then abandon the project and move to another shit coin.

MoveCrypto

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Quote from: MirkoIta on January 10, 2017, 03:52:28 AM

Quote from: ignitiondefect on January 10, 2017, 03:42:56 AM

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

That's how any ICO/crowdfunding should work, developers set milestones to reach, agreed in advance with the escrow and whoever is interested in the project. Funds should be locked and released only at those milestones so the devs won't run with the money after releasing a simple wallet clone.

I think we will start to see release of the ico money in stages becoming more common. Komodo was lucky to already have a reputable escrow on the team, so they accepted ico money directly into their 2-of-3 multisignature and can continue using the same 2-of-3 setup indefinitely if they want to.

Iconomi ico crypto is all still sitting in the escrow accounts. I'm not sure why. Maybe they don't want to officially take ownership of it until the platform is launched.

Quote from: exscudo on January 10, 2017, 07:05:41 AM

This is just a psychological way to comfort your users. Like, a popular person says that he trusts this project/dev team. This is like engaging a popular singer for advertisement. In fact, it does not give you any guarantee. But still, in any ICO, people look on the escrow agents. And if the project has no escrow, it is often marked as questionable.

This was the purpose of the escrows for projects like Lisk. The escrows didn't offer any protection to the investors other than the fact that they gave the project their stamp of approval. If an escrow puts their name on a outright scam where the people disappear, then they probably won't get any more escrow jobs after that.

ignitiondefect

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How many milestones are ideal? I guess being listed on exchanges is important.

Bitcoinsummoner

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Quote from: ignitiondefect on January 10, 2017, 02:41:36 AM

Thanks. But isn't there a danger that the escrow could just steal the bitcoins?

I think much better to choose the big 3 if you seen 3 above monbux is one of the reputative here in forum and i think they do not do what you are thinking because they already dealing with high amount of bitcoin if you can check his trust feedback maybe it can help you to have idea what you will use as your escrow..

thepo1m

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YOu appreciate Escrow when the developers end up been a scam and try to run away with your Bitcoin, Two good example is Opair and Decloud, Opair investors were able to get their fund but Decloud not becuase Opair used a credible Escrow

amacar2

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Quote from: ignitiondefect on January 10, 2017, 02:06:35 AM

I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

Actually in most of the ICO who will have escrow in middle have certain terms that will prevent devs from just running away scamming after ICO period. They need to deliver what they have promised in start to be able to get 100% of ICO investment and payments are made in parts to devs so that they will not run away and keep delivering updates and what is in their whitepaper.

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I think it should be there for the escrow that makes the project ico, because escrow helping to secure a developer so as not to deceive and attract large investors entered in peroyek you make.

Pursuer

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it creates a false sense of security for the users so that they think that coin is a safe investment and they can give they money to the person asking for it.
in my opinion ICO is meaningless is cryptocurrency world, when everything is copy paste and open source and is done with the help of the community and more like a peer review kind of thing. and as long as developers are seeing altcoins as their cash cow to milk, ICO scam and other scams will continue.

exscudo

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This is just a psychological way to comfort your users. Like, a popular person says that he trusts this project/dev team. This is like engaging a popular singer for advertisement. In fact, it does not give you any guarantee. But still, in any ICO, people look on the escrow agents. And if the project has no escrow, it is often marked as questionable.

Bigbrowndingleberry

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Quote from: ignitiondefect on January 10, 2017, 03:42:56 AM

Quote from: LoyceV on January 10, 2017, 03:39:37 AM

Quote from: ignitiondefect on January 10, 2017, 02:06:35 AM

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

You call it "steal", but it's just what an ICO (or IPO in general) is meant to do: raise money for the old owners/creators. Don't make the mistake thinking they do it for you.

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

So they would work for free and out of the warmness of their heart? OK. How are you going to live without being paid? You work full time for free haha

MirkoIta

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Quote from: Actualiteit on January 10, 2017, 05:32:46 AM

ICO's are worthless. If you have such an amazing concept it shouldn't be hard to find actual investors and not some suckers who can put in $2 each from their last rupees.

Finally somebody with a brain I totally agree with you ICO's are worthless and most of them just scams.

Actualiteit

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ICO's are worthless. If you have such an amazing concept it shouldn't be hard to find actual investors and not some suckers who can put in $2 each from their last rupees.

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Quote from: ignitiondefect on January 10, 2017, 03:42:56 AM

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

In that case it's likely they use the money to increase the "value" of their pre-mined coins. One way or another, they do it for themselves.
Don't get me wrong, that isn't necessarily a bad thing, although it would be better if they're open about that goal. In reality, they - for example - make up all sorts of possible future uses for the coin. Most likely, this will never be accomplished. That's why we have hundreds (maybe thousands?) of altcoins, and that's why they're also called "shitcoins".

MirkoIta

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Quote from: ignitiondefect on January 10, 2017, 03:42:56 AM

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

That's how any ICO/crowdfunding should work, developers set milestones to reach, agreed in advance with the escrow and whoever is interested in the project. Funds should be locked and released only at those milestones so the devs won't run with the money after releasing a simple wallet clone.

ignitiondefect

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Quote from: LoyceV on January 10, 2017, 03:39:37 AM

Quote from: ignitiondefect on January 10, 2017, 02:06:35 AM

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

You call it "steal", but it's just what an ICO (or IPO in general) is meant to do: raise money for the old owners/creators. Don't make the mistake thinking they do it for you.

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

LoyceV

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Quote from: ignitiondefect on January 10, 2017, 02:06:35 AM

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

You call it "steal", but it's just what an ICO (or IPO in general) is meant to do: raise money for the old owners/creators. Don't make the mistake thinking they do it for you.

shinratensei_

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Escrow will hold all of the funds and never will be releasing them until the dev will have distributed the coin.

Some day, there is ICO A and B was feeling interesting with it and gonna invest some of his amounts. and D will be the escrow for ICO A. And the amounts of B has held by D and anytime if the escrow will be failing or scam escrow still securing the investor's money.

Quote from: ignitiondefect on January 10, 2017, 02:41:36 AM

Thanks. But isn't there a danger that the escrow could just steal the bitcoins?

Yes is there, that's why we are need choosing the recommended escrow. Master-p is an evidence for the shit escrow.

ignitiondefect

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Thanks. But isn't there a danger that the escrow could just steal the bitcoins?

sunsilk

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Quote from: ignitiondefect on January 10, 2017, 02:19:40 AM

What's the most reputable escrow service for this?

There are a lot of reputable escrow here in forum and you can just choose some of them in this link. https://bitcointalksearch.org/topic/bitcointalk-escrows-trade-safely-855778

That is the list of bitcointalk escrows and you can see those escrows that are ready to help you with alt coins.

Because some of them are just escrowing bitcoin transactions.

Topic: What's the Point of ICO Escrow? - page 3. (Read 6478 times)