Don’t miss out on an ICO because your KYC takes too long
“Any startup that can ICO will ICO”
If you’re launching a cryptocurrency venture, those words by “crypto capitalist” David Sacks likely resonate. Over the past year, Initial Coin Offerings (ICOs) have skyrocketed to become the bread and butter for crypto-based startups looking to raise funds from investors.
And while ICOs provide a number of benefits — streamlined fundraising, geographic non-reliance, and potential for profit, to name a few — their unregulated nature carries a certain level of risk.
For instance, a hacker made off with over $7 million in ethereum during exchange platform Coindash’s ICO last July. And while such theft isn’t necessarily the norm, it does highlight the exploitability of unprotected ICOs.
KYCs: The first line of defense for ICO security
Know Your Customer (KYC) processes have arisen to mitigate the uncertainty of ICOs; they analyze and verify prospective clients, effectively reducing the dangerous anonymity of ICO transactions.
Slowly but surely, KYCs are growing from optional safeguard to required procedure for ICO investment. They’re starting to be enforced by both the U.S. Securities and Exchange Commission (SEC) and various cryptocurrency exchange services — and for good reason. After all, KYCs put a globally recognized “stamp of legitimacy” on ICOs that they wouldn’t have otherwise.
Despite providing such integral benefits, KYCs do come with their own notable asterisks.
The fatal flaws of KYCs
Traditional KYCs have been criticized for their extensive baggage, such as spiraling costs and questions around data privacy.
And, most prominently, major delays in processing.
The essence of ICOs is time-sensitive: Minor setbacks can prevent a user from purchasing tokens before the price rises or cause them to miss the token sale altogether. And given the extreme market fluctuations inherent in the cryptocurrency game, users need the ability to buy and sell instantly.
The bottom line: You don’t want to miss out on an ICO because your KYC takes too long.
With Clears, you won’t have to
We view the flaws of existent KYCs not as a roadblock, but as a door to groundbreaking improvement. Thus, Clears aims to revolutionize the ICO market by providing a convenient KYC service that is simultaneously fast, cost-effective, and secure.
As it stands, the cryptocurrency world tends to necessitate a “trade-off between security and efficiency.” Clears is designed to make sure you never have to make that sacrifice.
And ultimately, you won’t have to fear losing any more potential ICOs.
