What is an Ethical ICO? Find out here.

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Explaining investments into Initial Coin Offerings to traditional Venture Capital investors is hard.

They have concerns like:

“What makes a ‘digital currency’ worth anything”

“What controls the value of it?”

“What if the price tanks?”

We should listen to investors; VC investment has been around a long time. Investx is answering these concerns with an ICO model taking inspiration from Holo.host called an Ethical ICO.

An Ethical ICO

An Ethical ICO is an ICO and tokenomics design structured to reduce risk for investors purchasing tokens in an ICO, and to retain value for when the tokens are spent later.

1. Fiat value of ICO proceeds is the initial purchasing power of the token holders.
2. Fiat money reserves set aside safely to provide liquidity for purchasing investments using the tokens.
3. The amount required to be raised meticulously forecast to be just what is needed, and the excess kept in a reserve to add further liquidity and backing.
4. A tokenomics design reducing volatility and creating a value floor without a value ceiling.
5. A tokenomics design creates a direct relationship between underlying business growth and increasing purchasing power of the token.
6. A dynamic and sustainable token supply and demand model which grows with the business.
7. Setting aside company shares to be purchased by the investment community.

Why doesn’t every ICO work this way?

· It increases financial risk for the company — it needs to maintain a fiat liquidity reserve to maintain purchasing power of the token holders.

· It forces a need for business success to drive token value upwards, rather than speculation driving a short-term demand.

· It means allocating most of the fundraise for fiat reserves — ICO founders don’t tend to want to do that.

· Offering equity in the company launching the ICO seems to be a last resort.

I’m from the traditional investment world. Where financial risk should be placed on the business, business success should be the focus rather than allowing cashing in on short term token price volatility, and investors should be incentivised by and rewarded through the growth of the business they risked their kids’ inheritance for.

Which world are you from?

Our pre-sale ICO launches on 1st November — download our Litepaper, Whitepaper and Currency paper.

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