what problems exist in ICO

[Aio.Community]

The problem with ICO is that when there is not enough promotion and the project didn't reach the soft cap, usually they tend to slow down the development and sometimes they disappear. This is just based on my experience as I have been a victim of some shady ICO's.

In our opinion, advertising is the driving force behind the fact that many of them are victims of fraudsters. scammers buy the most expensive consultants who lead investors. investing from $ 5,000, any scammer buys investor confidence through consultants.

[Aio.Community]

I think the main problem for crypto ICO is?.the  most severe problem would be SCAM project, that doesn't just making all the investors to to leave and avoid any project with (ICO)and they want' us to hellp fro them.

I completely agree. therefore, our community decided to start a fight with such projects. we started, others will see results and join us. our website: aio.community

[Daliloz]

It seems to me that the most important problem of ico of projects is their uselessness and impracticality for today. It if to tell in general for all existing ico projects for today.
Many projects just don't solve those problems which the cryptocurrency and a blockchain technology in general has to solve.
New coins are created only to raise money from investors and to disappear with them. The ideas repeat each other or those which exist for a long time and work very well. On it I consider this reason most important, but it is of course not only.

[Aio.Community]

Great reviews of the problems in ICO. With the enormous development of blockchain and crypto, many project also jumped into the bandwagon. And most of these project has really no practical and feasible product to start with and just hoping that the hype will just move their ICOs on top. But I think people are getting smart right now that they become picky with what there are investing.

Yes, this is a very positive trend. when the concept of lost profits ends, another stage in the development of the ICO market will begin.

[Aio.Community]

ICOs currently have many problems. Everyone should be careful in their ICO investments. At this moment the money cycle is very little so the ICO processes are failing.

What do you mean by speaking about  money cycle

[ryker6688]

ICO is very difficult to say. I appreciate your article, it is really helpful to me. thank you. Good luck!!

[Aio.Community]

Digest AIO.Community

 

Today, the market of the crypto currency is in the development stage and therefore many questions for its normal development are not sufficiently studied and considered.

The team of the AIO.Community project considers it right to put these issues for discussion and propose its own way of solving them. This will give the market a new positive impulse and create conditions for the transition to a new level of development. It will make it more transparent for participants. With the possibility of obtaining financial protection for the project participant and ensuring a unified approaches to holding crowdfunding.

AIO.Community is an intelligent platform for ICO projects, with the possibility of obtaining financial protection for the project participant and ensuring a unified approach to holding crowdfunding.

When creating the project, we identified the issues that will be solved after implementing the platform in a global sense.

1.                About the ICO.

We all know that the list of coins on the market is constantly growing, but for a potential investor the issue of buying a specific coin that will bring him a profit, requires studying the main questions about the project, namely: the goal of creating a project (the product being created) and the team that is working on it. This gives an understanding for the investor as far as his participation in the ICO for him can be profitable and safe.

Creation of the team takes quite a long time. Ensuring the creation of an effective team before the sale of coins is very difficult, so the leaders of the new project either form an inefficient team that consists of enthusiasts who are ready to work without payment, or the team is published only for information and does not match to reality.

What are the outstanding problems of this issue?

- Effectiveness of this team for the investor is not clear;

- Main functions of individual team members are not described and not regulated;

- Final product is not discussed by the community;

- Financial reporting for expenditure is rare, and non-targeted use is not stopped;

- The rules of the team, evaluation of effectiveness, compliance with deadlines, the system for assessing the performance of individual structures in the team is often created from scratch or not at all.

All this, we call structural problems, which often lead to unprofitability of the project, and the creation of the final product is delayed or does not happen at all.

AIO - completely solves these and other issues, we offer:

Creation of a platform where a team of specialists consists of:

- Financial experts who assess the costs of the project keep records and report to the community on the targeted and rational expenditure of funds. Prepare all the upcoming spending items in advance so that unnecessary funds are not uselessly accumulated in project accounts, while at the same time; it was understandable for the community to create the final product.

These specialists have sufficient skills to optimize and reduce the costs of the project.

This avoids attracting investors from unclaimed investments and reduces the amount of coin emission to the required limits.

- Legal specialists whose work is aimed at creating the correct legal form of the project, selection of appropriate jurisdiction for the registration of a future company, registration of intellectual and copyright. The consolidation of legal relations between investors and the ICO project with the subsequent transition to the status of shareholders, full support and protection of the interests of the project and investors.

- Marketers who study the economic model of the project development, advice on the choice of the optimal way of development, introduce clear and showed the highest conversion tools for the monetization of a future product created with the investors' funds.

- Technical personnel who accompany or fully assume the issues of safety, project development, design, infrastructure, and so on.

- Administrative staff, who fully accompanies the project from the initial idea stage, organizes the ICO, manages the creation of the project, represents the interests of the project, and accompanies the access to the relevant exchanges for subsequent trades.

- A security group that fully checks the ICO project, its creators, verifies them for participation in other projects, monitors information on various sources and databases in order to identify signs of unreliability for investors.

2.                About funds and budget AIO.Community

Considering a number of interesting projects, we see that many of them could be implemented, but the teams that conduct them often have a goal only to hold an ICO and raise investors' funds. After that the project is conducted in a low-flow mode, and the investor receives information only from public sources.

We believe that this situation can be corrected and the ICO market for startups is more transparent.

We propose the following model of financial relations between the investor and the ICO project, where the AIO.Community platform will act as a guarantor of these relations using the following tools:

- Creation of an insurance fund, in which at each ICO will be sent 5% of the collected funds for the safety of which the platform is responsible.

If the project fails and the investors' funds are threatened, the insurance fund will reimburse them in full.

- Creation of a stabilization fund, which also contributes 5% of the ICO. In order to create a reserve to maintain a stable course of released tokens of projects, work on which was carried out on the platform.

Maintaining a stable exchange rate of coins is the basis for maintaining demand for the purchase of coins, this fund will buy coins from projects on the market with a drop in demand and vice versa, to sell to reduce supply so as not to allow unjustified speculative growth in the value of coins.

- The rest of the funds will go to the ICO project fund.

The supervision will be carried out by the community and monitored by the platform in the following order:

a. The budget of any project will be calculated by the platform and for each phase of the project implementation, funds will be allocated sufficient for this stage in accordance with the project roadmap.

b. Based on the results of each stage, the platform generates an audit report and submits it to the community for consideration

c. Based on the results of the audit report, the community answers the question: has the team fulfilled its tasks assigned to it, have the investors' funds been rationally spent.

d. If the community response is positive, then the team automatically receives funds to implement the next stage.

If the community response is negative, the team is completely removed from the project and work on it is transferred to platform specialists whose task will be to organize the work to complete the project, transfer it to another team of specialists or finish the work independently.

Conclusion: Investors' funds will be under constant control of the community and the platform, any of the implemented projects will always be brought to the end product and in the event of an insured event, the investor will receive a payment from the insurance fund.

There is no organization to punish fake or weak projects. ICO gives too much freedom for teams, they do no need to pass any verifications and most of projects are too weak, you can get it right after reading WP, but, unfortunately, most of people do not get it.

There are special writers who write white paper for money, and there will be a hidden call for purchase. and  investor will buy. All this is done for money, plus the project buys an adviser who will create a HYIP around this project.

[Aio.Community]

I think the main problem for crypto ICO is?.the  most severe problem would be SCAM project, that doesn't just making all the investors to to leave and avoid any project with (ICO)and they want' us to hellp fro them.

Definitely this scam project creates a very bad impact on the investors. Most of them lose trust and avoid some good projects. People need a protection in ICO to avoid scammers if it done then assume it will become a big success.

I agree. the main thing is not to fall under regulation)))

[Komandor8957]

It seems to me that the investor begins to buy coins mainly when a “name” appears in the coin and the developers are actively working not on advertising the project but on its implementation.

[Aio.Community]

That is indeed true if ICO has many kind of potential, from the good and the bad.
The good would be it can give benefits for the project and the people who were investing in that project.
The bad news would be if the ICO is just a scam, it will makes many people suffer loss, and their trust toward cryptocurrency.

2017 came to an end like a hyip around. now investors and scammers have become smarter.

[Aio.Community]

Teams do not pass KYC. They may place any photos, write several pages about every team member, but it turns out that this person had never participated this ICO and have nothing in common with it. Idenity theft is one of the easiest crimes all over the world.

I agree, but KYC is a tool that unleashed hands of scammers. it's easy to get around, and  developers of this tool have guaranteed everyone that this is most reliable tool in fight against fraudsters.

[Aio.Community]

Absence of any punishment for teams behind the ICOs. It is the main problem and we could not hope that ICO market will recover untill it would be solved. People do not want to make any kind of unreliable investments and it is easy to understand them.

cryptocurrency sector is decentralized !!! how can you punish them? regulation ?

[Aio.Community]

After the investment, you loose any opportunity to track it or to make some impact and motivate the team to work faster. There were several times, when teams took long vacation right after the ICO ended, so investors shoudl wait for too long to get some info at all.

I agree. no transparency !!!! but we have a solution to this problem. written about it here aio.community

[Aio.Community]

A considerable part of the ICO is a niche project, and most people still don't believe in this ico cryptocurrency!
If the project is narrow, then many other investors will not understand, so its demand will be low.

This topic can be a long discussion. which project will bring money. which benefits the whole world of  crypt, etc.

[Aio.Community]

I think that the main problem of the ICO is that this year a lot of scam has appeared. Bench projects reduce investor confidence in ICO. Thus, normal projects to collect the necessary funds becomes more problematic.

problem is that projects inflate  importance and at  same time  amount they need.

[sergey1301]

Good article!! The main problem of ico projects is fraud. In 2018, a 90% ico is a Scam!

[bakermaker123]

That's a well done statement, I also see a problem that exist in some ICOs and this is they are not providing updates and they are not talking to their community. There is a saying, communication is the key, and without communication, there will be FUD to the investors and to the people in the community.