Why is YINC doing an ICO?
YINC’s project is directly beneficial to the general public, making it simple and advantageous to find and hire vendors online. There’s no problem finding an audience for something so many people already wish they had. What’s more, YINC is getting started with a long list of influential partners that will be making YINC’s platform available to millions of people from the get-go.
So why even do an ICO? Aren’t ICOs for new companies with experimental products that struggle to draw in investors? With the advantage of such great partners and a global audience, why not just get traditional VC funding?
It’s a question that ICOs get all the time. And most tend to answer that it’s all about the community building and the technical needs of their tokens and those are both extremely important and valid reasons. But for YINC, there’s another important reason that has to do with the type of business and the integrity of the platform that they are trying to build.
In order for YINC to stay honest and transparent, everyone’s incentives must be aligned. The problem with the traditional model is that there are two main groups of participants and they both have competing interests. You have the company and its investors, and then you have the consumers.
For one, while the company and its investors care about their product, they’re more concerned with the bottom line: how much money can they make? And this can mean frequently changing their revenue models by lowering employee salaries or charging customers more which can jeopardize the entire experience for their customers.
On the other hand, the consumers want the exact opposite. They want the best customer service at the best possible prices. So they actually want the employees to work as hard as possible for as little as possible which means the investors in the company make less profit.
So these two interests are fundamentally conflicting. But with YINC’s ICO model, everyone’s incentives become aligned. The investors are investing in the token and the value of the token itself is simple a reflection of how well the platform works for the consumers. So now everybody is working towards a system that is as honest, transparent and efficient as possible.
YINC doesn’t only want to bring a good product to the masses, it wants to ensure that that product solves real-world problems instead of merely creating a cash flow to investors. YINC is not only a technologically innovative business model, it’s a socially innovative one as well.
