Ignite 2020 Update:
Ignite was initially launched with the vision to disrupt traditional credit ratings. We started with Crypto ratings as it was an easy market to target and certainly was needed at the time we launched our ICO. While crypto markets have suffered over the last year, traditional markets have continued to thrive and continue to offer many opportunities.
New regulations across Europe have increased the cost of capital raising, especially for SME businesses. A solution which lowers the time and cost involved can have massive implications for capital markets. It was this solution we have focused our attention over the past few months while pausing our crypto ratings business.
I am pleased to announce the development of a new vertical within the Ignite ecosystem, which lowers the cost of traditional credit ratings by leveraging new technology including blockchain. In order to distinguish this vertical from Ignite, our crowdsourced product, a new company Cencio has been formed to service traditional markets, while Ignite will remain crypto-focused.
The re-launch is separated into two phases, with Cencio launching first followed by a revised Ignite crowdsourced product at a later date.
Background:
When a company wants to raise capital, they usually need a credit rating to attract larger investors. Ratings are issued by approved CRAs, a very niche industry which is largely dominated by Fitch, S&P and Moody’s. In Europe, this industry is regulated by ESMA (The European Securities and Markets Authority) in the USA they are registered with the SEC, however often the rating methodology is not transparent, leading to bad investments and unfair valuations, as we saw in the financial crisis.
Recently smaller companies with innovative solutions have entered the market as approved CRAs, yet many of these companies have not yet found their niche in the market place, servicing only about 10% of rating activity.
Cencio via a partnership with a regulated credit rating agency is able to issue ratings at an unprecedented speed and lower costs while offering transparency on the process and rating via blockchain distribution.
How does it work:
An issuer seeks to raise capital, Cencio collects all relevant data helping the issuer manage the process. Based on the size of the offering the issuer will pay a flat yearly subscription fee which covers the companies ongoing rating and distribution.
Step 1: Our Partner firm analyzes all data and issues a transparent public rating.
Step 2: Cencio places the company and rating summary on a publicly accessible blockchain.
Step 3: If desired, the issuer is then passed to another partner firm which can raise capital from a variety of institutional investors including traditional banks.
Step 4: Via a subscription service the rating is updated with all relevant data, available to the public via the Cencio platform.
SMEs across Europe, along with blockchain funded projects (Past ICOs) are our first targets. This market is traditionally overlooked by large rating firms. A pipeline of business is being developed as I write this update.
Phase Two:
Phase two of the project which will see Ignite Ratings coming back online but as second opinion / early alert system, non-regulated but reputation based. This project will use revamped Ignite software. In this case, the index functionality will also play a role to incentivize users. Phase two will only be launched when phase one has a degree of success and completion, with funding for the full implementation of the automated elements which were lacking in the original release.
It's our hope this system will eventually be approved to make a core component of the official asset rating process, providing more transparency and clarity for investors.
Does IGNT/IGNX have a role?:
New issuers will have to hold a minimum of IGNT. These tokens will be purchased off the open market with a % of fees charged for our rating issuance.
Our hope is a buyback will make for speculation on the token price, as buybacks will be random and result in increased trading activity.
We will see the token functionality return as the user-powered Ignite system is redeployed, continuing the original token use case.
As many of you are keen to point out, IGNX is currently illiquid. This situation is not acceptable to us or the token holders. We aim to correct this problem, listing on a reputable exchange and partnering with a leading market maker, however, this listing will require investment as funds are not available to finance this effort sustainably.
Equity-based Fundraising:
Naturally, any business requires capital, the initial Ignite ICO funds were forecasted to last for 18 months, which they did, however, that period is long gone. We had hoped to raise more funds by selling secondary tokens, however, it's clear that is not an option. Thus, the equity path is the only viable solution.
I am in discussions with investors who can provide capital, however, it's only fair that token holders also have an opportunity to invest, subject to KYC and nationality.
Should enough community support be provided a crowdfunding campaign will be launched on a popular UK platform. Interested parties should DM me for more details.
Telegram:@Ignitechris
Questions and Answers:
I know many of you have questions. I will make a telegram group so users can simply post questions they would like an answer to. After one week I will post a reply to each question in the form of a medium article. The group link will be pinned in the main Ignite chat.
Final Remarks:
We will have a separate press release announcing each partner involved. #
This message will be pinned until further updates become available, thank you for your patience while we are in this transitional period.
All the best,
Chris
