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Forwarded from Black Whale

Following our post from yesterday, we would like to share our vision and suggestions on how to improve the ICO space:

-Terms are coded into a smart contract. Each and every investor knows what the total supply of tokens is, total circulation supply, token price, bonuses given, beginning and the end of the sale, vesting schedule, etc. Tokens allocated to the team and advisors are also locked/vested in the smart contract.
-The funding rounds are open to a big number of community participants. We want to emphasize on public participants (preferably with whale protection in place), not private/seed round participants. This leads to a more balanced model and protects against price manipulation. We understand that ICOs avoid public sales for legal reasons and let’s be honest - it’s a hassle - KYC checks, whitelisting, individual caps, a ton of the same questions over and over. However, we believe this model fits and serves best the core idea behind the blockchain space - empowering the community.
-The project is open source with an active engagement of the community in its development. Essentially, a project can only survive and develop long-term if it has a big, active and supportive community.

What the current ICO space looks like:

-Terms are often unknown - number of funding rounds, bonuses, lock-up/vesting schedule etc, but more importantly - they are not coded into a smart contract, so the community relies exclusively on the good will and honesty of the ICO team.
-Most of the tokens are sold to VCs and private investors with unknown bonuses/discounts and lock-up/vesting periods. Either a small chunk of tokens is allocated to the public sale or there’s no public sale at all. At the end of the day, scarcity creates FOMO, especially when you have the marketing tools VCs and large influencers operate with.
-Change of terms without following SAFT agreements or previous statements made by the team. This, unfortunately, is also becoming a common practice amongst ICO projects with Quarkchain being the last example.
-Centralized exchanges “blackmailing” projects with huge listing fees as this is one of the main price moving events.
-The community is often built around telegram bots, moon-lambo fan boys and organized shills.
-The project is rarely open-source. Up until recently and even now we see funds being raised w/o the project having an official telegram channel, MVP, website or even a whitepaper. Let alone a lot of these ICOs are forks and/or recycled ideas of previously existing projects.

We believe, the current state of the ICO funding is no better than traditional funding, it is even worse. The community is not involved in the project in a valuable way. Most tokens are sold to the selected few.
Lack of regulations are exploited by ICO teams and sometimes other parties involved. The team has no obligations to anyone. Nobody is protecting the rights of the investors.
We believe we are due for a major change as the current ICO model is no longer sustainable. Retail investors and a large portion of the crypto community is already aware of what’s happening behind the scenes. We encourage the community to know and embrace its power as no project has a viable future w/o building a strong community.
Just remember -fool me once - shame on you. Fool me twice - shame on me.

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