Many people are comparing today’s blockchain adoption to that of the internet boom. The technology has opened the floodgates to new businesses and technologies across all industries, such as finance, data, cybersecurity, health, real estate, and more. For those that believe in the technology there are many opportunities to invest through the form of an ICO, which for the blockchain community is a form of crowdfunding through the purchase of a cryptocurrency. In many ways ICO’s are a great opportunity for entrepreneurs with revolutionary ideas to get funding without the need for connections. Just like Kickstarter and Indiegogo have created a platform for all kinds of innovations to crowdfund their project, ICO’s were intended to fund blockchain innovators through the crypto community.
In the past few months though, the reputation of ICO’s has been tarnished with bad eggs and exit scams. In order to continue the exploration of blockchain technology and its application, the blockchain community will need to take some self-regulatory measures. As the community of crypto enthusiasts begin to recognize the threat of government regulation, entrepreneurs are taking matters into their own hands.
Enter ICO HeadStart: ICO HeadStart is a fundraising platform which curates the most promising ICOs for it’s community of investors. The platform operates with the help of compliance officers that have expertise in selecting, screening and certifying ICO projects before they are allowed to join the platform. Through this in-depth course of action, ICO HeadStart offers its community access to what they consider the best ICO proposals, while also providing a high level of risk management in the ecosystem. The key standard used they call the “ICO HeadStart Seal of Approval”, essentially symbolizing what they believe are the best and most promising ICOs on the market.
ICO HeadStart launched its platform in response to the many ICO’s that turned out to be fraudulent or scams. The platform lets backers and project creators both benefit from the crypto revolution, not just with the help of industry insiders, but rather with the help of any user – the Wisdom of the Crowd.
ICO HeadStart offers a unique profit sharing model. In total, 80% of the profits made on the exchange and through contracts with the project creators on the ICO HeadStart platform will be used to buy back MOAT from token holders. MOAT tokens are the cryptocurrency used within the ICO HeadStart platform, and have connection to fiat currency. By doing so, the company contributes to an increase of the value of MOAT and thus returns their profits to the community. ICO Headstart plans to use the remaining 20% of MOAT tokens for newly listed projects on the platform, therefore giving them a “head start” in the funding process. ICO HeadStart opened its crowdsale to the public on February 26th, 2018.
The platform supports the success of its projects by providing them with everything needed to succeed. ICO HeadStart demands quality ICO practices, and thus offers third-party legitimacy by certifying projects with the ICO HeadStart Seal of Approval. They offer access to their community of investors, know-how on smart contracts, legal advice, as well as marketing and technical support. Everything necessary to ensure quality investments are being made into blockchain powered businesses.
Blockchain pioneers must take actions to build their own reliable infrastructure or else the development could lose its momentum. It is the responsibility of the crypto community and companies like ICO HeadStart to self-regulate and offer services that make quality blockchain proposals stronger, and truly weed out the bad eggs. It’s a really great idea in theory, but in practice is it possible for one small company to eliminate all the scammers of the blockchain? Is there really a way to determine whether a company is just in it to fund and ditch? Consumers themselves should continue to be cautious. As with any investment, consumers should do their own due diligence and put all of their eggs in one basket. You never know when the next Bernie Madoff fraud will take place, and it’s no different with crypto investments. Nevertheless, it is promising that the blockchain community is taking control of the situation by asserting self-regulation. It will be interesting to see where regulation goes from here.