Decentralised Escrow Service, Safer ICOs all the way
In the cryptocurrency world over the past few years we have witnessed the exponential growth of investments that are being made and current estimates of these investments run into billions of dollars. So as the market matures there is a real need for more reliable tools for investment tracking and protection. Large institutional investors and hedge funds have shown interest in investing in cryptocurrency as they seen the huge potential it has and huge returns they stand to gain, however issues of trust and confidence are of extreme importance to these investors than any others.
Decentralised Escrow is a tool that can be directly integrated with the processes of startup fundraising, funds storage and the distribution of the raised funds. The problem that the tool seeks to solve are those doggy projects/ICOs that run as soon as they raise the required investments leaving investors out to dry. Some companies fail to meet their laid out goals or find out that the costs of project implementation are more than anticipated and when such hiccups arise they tend to just lie low and let the project die a natural death.
Currently there is no clearly laid out regulations in the cryptocurrency industry neither from the governments or the crypto-community therefore scammers have also taken an interest in ICO. Honestly investors are at the mercy of startups and their initiators, but only until now. DES — Decentralised Escrow Service, the first ever decentralised escrow platform on the blockchain plans to bring confidence into the crypto world and give investors a voice in how projects are executed.
How does DES works — DES offers escrow services, that is to say, a multi signature wallet as a perfect way to insure the safety of the collection, storage and usage of the funds raised during an ICO. It helps to define the rationality of further financing an ongoing project via general voting of investors at different stages of project implementation thereby giving investors control over their invested funds and a voice in the process.
I have noticed that most projects being initiated in the crypto world these days end up straying away from their laid out roadmaps but when using DES, compliance to the roadmap can be enforced through a stage by stage management and financing model. The Descrow platform will spilt up the startup’s projected financial needs into stages thereby allowing for a systematic distribution of funds from one stage to the next.
DES can be used as a yardstick to check the real intentions of startups and their teams thus protecting investors from the risk of doing business with the wrong people. Through the voting system that I have alluded to above funding to the project can be stopped whenever the startup’s team’s intentions are not clear or if they fail to follow the roadmap. Maximum safety of invested funds is ensured by using the DES platform and it also allows the full return of the reserved funds to the investors in cases of non-compliance with the project’s laid our guidelines.
The team at DES also plan to establish an insurance fund for assets invested during the first stages of an ICO as these are more prone to the risk of theft and embezzlement. Affected parties will get compensatory payments of up to 70% of the lost investment from the fund upon occurrence of a theft. This offer will be a huge confidence booster to investors as they will feel insulated from loss of hard earned cash. Currently the rule in cryptocurrency has always been, ‘’Do not invest more that you are willing to loose,’’ and scam artists have been taking advantage of this.
Also by investing less than what they were willing to loose investors were not excessing their full financial muscle thereby starving off the cryptocurrency industry of the much needed financial injections in the process. With the introduction of the DES platform I see all this coming to a halt and better investments coming in to aid good projects to explore their full potential.
From what I have talked about DES above once gets the sense that DES is only here to protect investors and put unnecessary pressure on startups to perform and deliver, this is far off from the truth. Startups are the main beneficiaries of the Decentralised Escrow Service. For those that have tried to do an ICO in the past they can attest to the observation that investor confidence is very difficult to attain especially in the blockchain ecosystem.
Risk is very high in the cryptocurrency industry due to the existence of many doggy characters who hide behind keyboards and IP addresses everyday lurking around trying to take hard-earned cash from prospective investors. There the DES platform will considerably reinforce the reputation projects and teams who are willing to go through the process. Integration with the DES platform will be a good sign that the team has nothing to hide and intends to adhere to their laid out roadmap. The partial insurance that will be offered by DES is most likely to make projects more appealing to investors thereby making the job to convince investors to part with their funds easier.
The Decentralised Escrow service will come with the DES token which according to their website is not a stock item and they do not guarantee that one will earn a return by simply buying it. What the token will do is that it will give its holders a right to get a 30% discount as they pay for the platform’s services and other fees.
Will it change the crypto world? It is difficult to predict the future but from what I gather from their whitepaper DES is going to revitalise the market of capital fund raising both in the cryptocurrency industry and also into the sphere of crowd funding. Doggy projects that has been preying on the financially illiterate and those with a poor aptitude of blockchain technology. In sort DES will restore confidence in the cryptocurrency world and when the confidence level is raised, investors are prone to go well beyond the set softcaps and hardcaps thereby benefit everyone.
More important information about Descrow
For more on DES please go to https://descrow.com/
Follow the DES profile on Twitter: https://twitter.com/Descrow3
The announcement on bitcointalk: https://bitcointalk.org/index.php?topic=2089578.0
My Bitcointalk profile: https://bitcointalk.org/index.php?action=profile;u=1251246