A Piece of mind in an unregulated market: DESICO ICO (August 20th-November 1st)
Today I'm going to take a look at a really interesting upcoming project called Decentralized Ecosystem for Security ICOs (DESICO).
The platform will give investors a safer way to invest early in cryptocurrency projects offering security tokens.
What the DESICO Platform will offer?
Vetting of Projects
Most importantly any project wanting to list on the DESICO platform will have to undergo a stringent vetting process which includes meeting the DESICO compliance team in person to have their business model assessed. The assessment will include know your customer (KYC)and anti-money laundering (AML) checks. Precautions like these should prevent any scams being listed on the platform therefore giving investors more confidence.
Key components of the DESICO Ecosystem
Crowdfunding Platform
DESICO will operate a global EU-based platform offering a fully compliant way for businesses to issue ICOs, and for token buyers to acquire and trade these tokens.
Built-in Exchange
DESICO will operate a fully regulated exchange. It will provide security tokens with immediate liquidity after the successful completion of an ICO on the DESICO platform.
E-Money Accounts
DESICO users will be able to manage both crypto and fiat holdings within the platform. They will also have the opportunity to exchange their cryptocurrencies into fiat currencies within the DESICO exchange.
See video below for more details:
Value of DESI Token
- Payment method within the DESICO Ecosystem
ICOs wishing to issue security tokens via DESICO will have to contribute a certain amount of DESI tokens to the platform as platform fees. Investors will be able to acquire these newly-issued security tokens by paying in DESI tokens. External experts and community members will receive DESI tokens in exchange for their services. - Privileges when acquiring security tokens
DESI token holders will be given exclusive rights on the DESICO platform. These will include early bird access and whale-like bonuses when acquiring security tokens, and being exempt from trading fees on the DESICO exchange.
Why security tokens?
If a crypto token gains its value from an external, tradable asset, it is classified as a security token and falls under securities regulations. If a startup meets all its regulatory obligations, the security token classification creates the potential for a wide variety of applications like the ability to issue tokens that represent shares of company stock. This is extremely important as most utility ICO’s offer no such assurance.
Utility tokens, represent future access to a company’s product or service. The defining characteristic of utility tokens is that they are not designed as investments; if properly structured, this feature exempts utility tokens them from federal laws governing securities. By creating utility tokens, a startup can sell “digital coupons” for the platform it is developing.
This is an excerpt taken from a recent ICO which is typical for any ICO offering utility tokens:
Token usage: No Ownership, Revenue or Governance Rights: In particular, XXXX do not represent or constitute any ownership right or stake, share or security or equivalent rights nor any right to receive future revenues, shares or any other form of participation or governance right in or relating to the XXXX Project.
Token sale details and token metrics
The token sale takes place between August 20th-November 1st
Recognition and ratings
DESICO has gone about networking in the best possible fashion. The project has been recognised by major players both within the cryptocurrency community and from official government ministries.
The ICO ratings also look pretty good!
Community activity
Another good indication of how an ICO’s team is its willingness to engage with the community. So far, I can confirm DESICO have been excellent, their Telegram channel always has team members on hand to answer questions, the team also delivers regular updates on YouTube and of course here on Medium.
Will I be investing?
The short answer is Yes! I've been really impressed with the team and the project is gaining more publicity every day. Governments and big institutions will love the idea of a fully compliant security token platform for ICO’s. The roadmap would suggest that this is a long-term hold with most of the big developments coming in 2019, so, one for the patient investor.
As always DYOR and let me know what you think below…