Initial Coin Offerings or ICOs were all the rage in late 2017. They even allowed startups to access their capital which would generally have been out of their reach for quite some time. By early 2018, their credibility as an investment tool was dependably faltering. The projects began to fail. Scams and bad actors were seen prevalent. A new sort of financial had emerged – Wild West.
For the purpose of combating this trend effectively, Investx, the SME funding platform, announced its public sale for the INX utility tokens this week to be conducted as an ‘Ethical’ ICO.
Replicating a model that was first considered by Holo, which finished out an ethical ICO in April this year and raised $20 million to fund its distributed computing platform, Investx too is planning to raise $20 million for funding blockchain-based SME fundraising platform.
Abiding by the three ICO principles that the company articulates as ‘Ethical’, the Investx team believe that they will be able to lessen the risk for potential investors and enhance the long-term value of the company’s token. The features of ‘Ethical’ include the creation of a reserve fund by acting as a value floor and reducing volatility at the same time. Also, it involves implementing a sustainable token supply.
For supporting the new project, Investx has carried on the board with the Director of Holochain, David Atkinson, to assist and advise with the ICO –
“ICO investors are looking for something extra these days – honesty, openness, accountability and moderation. When we conceived the ethical ICO model for Holo, it was about giving investors assurances that we would keep to these principles. With Investx, we have evolved these ethical principles.”
With this announcement of its public sale ‘Ethical ICO’, the SME funding platform, Investx is sure to give a different edge to its customers in this domain.