Transparency in the Blockchain Industry
What do ICO’s (Initial Coin Offerings), TGE’s (Token Generation Events) and Coin Sales all have in common? Unfortunately, they don’t currently have the regulatory oversight that many similar investment contracts would carry. On top of this, they also deliver an asset in an extremely volatile environment (which can have little to no value), unlike traditional crowdfunding methods which delivers a widget.
There’s billions of dollars flowing into this industry everyday. With the lack of oversight and the newness of the industry there’s a substantial amount of risk involved with all these invested dollars. Whenever there’s money to be made, there’s always those looking to take advantage of individuals who may not do proper due diligence or may not be aware of the risks involved in cryptocurrency investments. When we look to traditional startups, the individuals who are the primary investors are more often than not, high net worth individuals. These individuals have extensive resources at their disposal to ensure that the investments they make are sound and the teams and projects behind the veil are legitimate. Regardless of the abysmal success rates of startups in general, traditional venture capitalists have weathered countless storms and sustained countless losses in order to ensure they’re experts at poking where it hurts and sifting through the overbearing start-up space noise.
Unfortunately, due to the nature of cryptocurrencies, tokens and the revolutionary nature of blockchain technology — we have developed an investment methodology that allows simple and easily accessible crowdfunding on a global scale. Raising money for a new technology startup is no longer restricted to the boardrooms of Silicon Valley venture capitalists. The great unwashed can now participate in purchasing a little bit of their company right from the comfort of their own living room. This ease-of-use technology has led to a variety of failed projects, ponzi schemes (bitconnect) and blatant exit scams such as LoopX (4.5m) or Confido (375k).
Regardless, this hasn’t swayed investors opinions concerning ICO’s. With over 6.3 Billion invested in ICO’s in 2018 alone, this market clearly has no signs of slowing down. That being said, there is a greater duty of care placed in the hands of ICO/TGE issuers in 2018. Investors are getting smarter, the market is getting more competitive and regulators are taking a closer look. Businesses will no longer be able to receive millions of dollars in funding with a simple concept or whitepaper. The burden of proof will rest on a more thorough business plan, regulatory compliance, disclosure and transparency. As the TGE space is still (to some affect) self-policing, project transparency is of the utmost importance when investors are navigating the crowded ICO/TGE space.
Before we discuss what you should look for in an up and coming Blockchain company, let’s discuss transparency. Transparency, in a business or governance context, is honesty and openness concerning the actions of a specific organization. Transparency within an organization should be as such that all actions in which the organization undertakes must withstand public scrutiny and should showcase that actions undertaken by the business are in the best interest of the public, society and stakeholders. Transparency is closely related to ethics and honesty when it comes to good corporate governance and is valued in the highest regard by investors, customers and regulatory authorities.
Elysian sets the bar in terms of transparency and openness with their project, goals and abilities as a team and as a company. Transparency involves a variety of factors, however in the case of Blockchain and cryptocurrency startups, transparency usually involves setting out clear and deliverable business goals that you mean to live up to. Although it’s ok for you to have a 1,5 and 10 year plan. Highlighting what can be easily accomplished, what will provide the lifeblood for the business and what will come to fruition, only if you’re the next Facebook should be clearly outlined. The risks of cryptocurrency and investing should also be outline as this space is extremely volatile and many investors are uneducated in the risks involved.
A team should showcase who’s involved with the project, their credentials and their ability to bring this project to the point where they can truly deliver value to the investors who’ve supported them. The Elysian team realizes that in the wild west of Crypto and Blockchain the bare minimum just doesn’t cut it and this is why they go over and above the line of duty in ensuring that each and every single investor in their project understands their team, their purpose and their ability to deliver their product. Every single member of the Elysian team lists their extensive credentials which will hold up in any court of public opinion and the members themselves are some of the most transparent and open of any blockchain team in the space. The ability to reach out and personally ask the pressing questions about their project is what makes the Elysian team so remarkable. With access like this, it allows investors to feel comfortable in their decision to support such an innovative, disruptive project.
As part of an ongoing effort to ensure investor faith, confidence and operational transparency the Elysian team has always and will always invite all investors to openly participate in group discussions on their Telegram. They invite you to review their team and their qualifications as well as contact them with any and all questions and concerns. They also mandate that you review their website and whitepaper before investing anything in their project. It’s hard to find a team as open, honest and skilled as the Elysian team. It’s even harder to find a team that’s making a proactive effort to better the space — starting at home. Although the space may not be perfect, let’s look to Elysian as an example of what to do right as this space continues to evolve and mature.
