SummaryWe believe UAICO can provide solutions to the many problems that ICOs face today.
Limitations of current ICOs
- Early stage projects are overfunded, and there are no possible ways of verifying the legitimacies of various projects.
- Generating revenues from getting listed on exchanges rather than from the actual business model ultimately creates a bubble that can harm the overall crypto-market.
- Businesses can fail at any time. But when those with their own cryptocurrency fail, the entire currency collapses and cause various damages.
Strengths of UAICO
- Because the majority of funds are safely stored within the smart contract, currency remains stable even when a business fails.
- Funds become the underlying assets of a currency and therefore reduce the risk of price fluctuation when supply increases from additional ICOs.
- Businesses can start small, gradually prove their worth, and provide additional issuance of their currency later on.
With the basis of its underlying asset, UAICO is more likely to have its price increase compared to that of the incumbent cryptocurrencies. Investors can also expect consistent growth in the price along with the growth of the crypto market.
https://i.imgur.com/8DigPuF.jpgHarbor team, a group of Korean developers who are working on creating a decentralized software market, proposed a new ICO model–UAICO (Underlying Asset ICO).
UAICO safely stores all the invested funds within the smart contract and utilizes them as the underlying asset of a newly issued cryptocurrency.
ICO had attracted numerous founders of small startups because it allowed them to raise tremendous amounts of funds only with a single whitepaper. Recently, however, there have been overwhelming numbers of ICO projects, and they have brought to light some crucial limitations of the current model.
1. Early stage projects (in their ideation stage) are overfunded, and there are no possible ways of legitimately verifying the ICO projects before one can invest on them.
In most cases, businesses usually start small with small amount of funds. They get invested as they gradually demonstrate their growth and prove their worth to the investors. ICO business, on the other hand, set their fundraising goals a lot higher to begin with. This is due to the fact that they require much more budget to get listed on exchanges and maintain price stability.
However, with the ICO booms came the ICO scammers, going for the funds of the naïve investors.
2. Generating revenues from getting listed on exchanges rather than from the actual business model ultimately creates a bubble that can harm the market.
Cryptocurrency is a digital log of transactions that creates value by building a network of anonymous trust. If a company succeeds in listing its currency on an exchange before it develops the core technical aspects or its business model, bubbles will begin to form. If the company fails to create any worth or value from their business, the network of trust eventually is shattered and many investors are leftempty-handed.
Vast majority of investors generally aim for the high volatility and fluctuation in theprice value of a currency in order to earn big profit. In the short term, ICO businesses and investors may benefit from the fast paced crypto-market, but in the long term, such behavior will result in more bubbles that will damage the economy.
3. Businesses can fail at any time. But when those with their own cryptocurrency fail, the entire currency collapses and cause various damages.
ICO was first created as a solution for startups that had pioneer technical values without solid revenue models. However, as ICO gained attention, it simply became a method for simple fundraising projects. Any company can succeed or fail. Even a great company with a great business model can fail to generate revenue and be eliminated from a competitive market. However, while a normal business failurecauses most harm to the business itself, a collapse in a cryptocurrency can affect everyone with the currency.
Hence, there must be an ICO model that focuses more on maximizing protection to the investors and minimizing the consequences of business failures.
We are thrilled to propose UAICO (Underlying Asset ICO) as a possible solution to the many problems stated above.
What the UAICO model can offer:
1. Any investor can refund his or her share with the stored funds within the smart contract. A newly issued currency is able to create value from the underlying asset, maintain price stability and minimize investment risks.
2. Compared to previous ICOs, UAICO businesses receive noticeably less profit and budget. Meanwhile, investors can anticipate more capital gain, due to its higher price stability by the continuous influx of underlying assets stemming from its additional ICO events.
3. UAICO is a great fundraising model for a business with a solid revenue model. It is a model that supports small companies that gradually demonstrate their growth and prove their worth. We believe this model can help alleviate the currently overheated crypto-market.
In conclusion, UAICO is a new cryptocurrency issuance model with plenty of technical and economical values. Among the many new ICO models proposed, we firmly believe that UAICO can help create a more price-stable and investor-friendly cryptocurrency market in the long term.
Project Site:
https://www.toharbor.comOnline meetup:
https://meetup.toharbor.com
