New blog post. More things will be addressed in the following days.
https://medium.com/iconominet/iconomi-more-ambitious-goals-and-a-21-000-btc-cap-after-a-successful-ico-start-ccb06efff709#.r0ebqtb8bICONOMI: more ambitious goals and a 21,000 BTC cap after a successful ICO startDuring the first 24 hours of the ICO, ICONOMI raised almost a quarter of its minimum target capital of 2,000 BTC, and surpassed it only 5 days later. With the ICO threshold exceeded, there remains no doubt whether or not the ICONOMI Open Fund Management Platform will be created.
The ICO continues steadily — today, on September 2nd, the amount of capital raised surpassed $3 million. Understandably, there are a lot of questions regarding the use of the funds raised through the ICO. First, we have to emphasize once again that 2000 BTC is not the capital target of the ICONOMI ICO, but a threshold — minimum initial capital needed for the development of technical infrastructure, the start of the two ICONOMI funds, and the development of the ICONOMI platform.
ICONOMI’s mission is to provide an opportunity for investors looking for high profits, not possible in the old economy. With newly developed financial instruments, ICONOMI will drive new investors and fresh capital into the decentralised economy. In the first few months, ICONOMI will introduce the first two funds into the decentralised economy: ICONOMI.INDEX and ICONOMI.PERFORMANCE fund.
ICONOMI is the first fund management platform for the decentralised economy. The ICONOMI’s vision, coupled with the substantial amount of capital raised, will enable us to thoroughly disrupt the financial industry.
The amount of capital raised enhances the development of the ICONOMI platform in several key ways and further widens the gap between ICONOMI and potential competitors. Personal hardware devices will be offered for the generation of paper wallets, which will enable a very secure way for storing ICN tokens and all crypto assets supported by ICONOMI (starting with Ether, Lisk and Bitcoin); hiring additional manpower will shorten the time-to-market; due to the pioneering nature of ICONOMI, a portion of the capital raised will be reserved for potential legal & compliance requirements; strengthening of the ICONOMI brand will be possible with enhanced marketing automation and global public relations. The funds allocated for the completion of the project are set to 10,000 BTC.
Should the capital raised surpass 10,000 BTC, the excess will be invested in the invitation only actively managed ICONOMI.PERFORMANCE fund.
To avoid overfunding we have decided to set the upper limit (cap) for the ICONOMI ICO at 21,000 BTC. When this is achieved, the ICO will be closed. The limit is necessary because of the ICONOMI.PERFORMANCE fund policy and the fact that current investment opportunities are limited. If 21,000 BTC is collected, the assets collected during the ICO will represent 73.3% of the total ICONOMI.PERFORMANCE size — the first batch will be capped at 15,000 BTC. The rest — 4,000 BTC — would be available to invitees.
To reiterate — ICN token holders will receive ETH dividends. The concept of dividends is rather an exception in the current state of the new economy.
As a gesture of appreciation, all ICO participants will have the option to receive an exclusive, physical “ICONOMI founders club” debit card.
The decision for investment of capital raised above 10,000 BTC in the ICONOMI.PERFORMANCE fund needs additional clarification. ICONOMI’s ICO aim is to increase the value of ICO participants’ invested assets, which implies effective distribution of the raised capital. We believe it is in the best interests of current stakeholders to invest the potentially excessive part of the raised assets into the ICONOMI funds. By making this step, the value of ICONOMI is inherently increased, as the initial capital required for fund commitments will already be available, which makes funds operative and importantly, very attractive to future investors. Additional inflow of fresh assets into the ICONOMI funds will be much easier to secure. Please note that the inflow of capital into the funds is one of the most important factors in the fund management business model!
Another benefit of moving the potentially excessive part of the raised assets into the funds is a cheaper fund entry for the ICN token holders. As ICONOMI charges fees for its services and ICONOMI is owned by ICN token holders, they are indirectly charging and simultaneously collecting fees on their investment to themselves. This means their fund investment with the assets collected during the ICO is free of charge for ICN token holders.
This is the first news announcement related to the success of the ICONOMI ICO. There will be an FAQ update in the following days, which will include answers to questions of a more technical nature and details regarding fund management.
