[ANN] [ICO CLOSED] Inchain - insurance for the crypto economy

[SpacemanOne]

Looks interesting, what kind of profit you can anticipate with an investment of 1 BTC?

One year after the project launch (planned launch date is 28.04.17) the profit for 1 BTC according to my calculations will be around 0.12 BTC + change of the token price.

[Inchain.io]

1)   You compare a fund with an insurance platform pointing out only advantages of the fund and disadvantages of the platform. For example, I assume that the fund managers will be trading at some cryptoexchanges, so why don’t you add a risk that these exchanges may be compromised and the fund loses its money? Same story with the Ethereum network if the fund invests in ETH. I also would not say that there is no legal risk.

Not correct. The risks of compromised exchanges exist for the insurance platform too. Or you won't use any exchanges to purchase the crypto assets?
Or you mean the fund managers will store their funds at the exchanges? No, they won't. They will use the exchanges to buy and sell assets only, not to store them.
You also don't understand the Ethereum network risk. I mean your system is built on top of Ethereum and uses Ethereum smart contracts. If there are Ethereum network problems your system will have problems too. We all know about the hard forks.
http://forklog.net/ambisafe-urges-ethereum-to-revise-hardfork-conditions/
And yes, legal risks always exist for all legal structures.

We do understand the Ethereum network risks. The point I was trying to make is that every investor in ETH is quite sensitive to such risks as well.

[Inchain.io]

2)   Sorry, I can’t understand what you mean here. What is the connection between our fundraising and dividends?

Will be less than 10% if the ICO will have more than $1.75M.

Very simple. Anticipated income according to my analysis is $208 000.
1. ICO result - $1.75M. ROI for ICO investor = 208/1750 = 11.8%
2. ICO result - $3M. ROI for ICO investor = 208/3000 = 6.9%

That's interesting. How was the performance of the fund calculated? A few posts earlier you said that 50%-100% was not a problem for the industry.

[Inchain.io]

3)   Same risks as above.

What same risks? Can you enumerate them, please?

- Fund management
- Exchanges
- Legal
- Networks

[Inchain.io]

Waiting for next questions

Where will you take the funds to support the operational expenses of InChain (your team) after the project launch?
Will you use the ICO funds? Or InChain DAO will decide? What will be the approximate size of that expenses for the first year?

Salaries of the developers, soft and hardware. We will form the budget and ask the investors to approve or amend it.
The use of the ICO funds as stated before:
- $750K pre-launch expenses
- $1M the Insurance fund

[SpacemanOne]

2)   Sorry, I can’t understand what you mean here. What is the connection between our fundraising and dividends?

Will be less than 10% if the ICO will have more than $1.75M.

Very simple. Anticipated income according to my analysis is $208 000.
1. ICO result - $1.75M. ROI for ICO investor = 208/1750 = 11.8%
2. ICO result - $3M. ROI for ICO investor = 208/3000 = 6.9%

That's interesting. How was the performance of the fund calculated? A few posts earlier you said that 50%-100% was not a problem for the industry.

You can check my previous posts. I took the number 10% from your financial plan.
https://bitcointalk.org/index.php?topic=1623519.msg16631252#msg16631252

[SpacemanOne]

1)   You compare a fund with an insurance platform pointing out only advantages of the fund and disadvantages of the platform. For example, I assume that the fund managers will be trading at some cryptoexchanges, so why don’t you add a risk that these exchanges may be compromised and the fund loses its money? Same story with the Ethereum network if the fund invests in ETH. I also would not say that there is no legal risk.

Not correct. The risks of compromised exchanges exist for the insurance platform too. Or you won't use any exchanges to purchase the crypto assets?
Or you mean the fund managers will store their funds at the exchanges? No, they won't. They will use the exchanges to buy and sell assets only, not to store them.
You also don't understand the Ethereum network risk. I mean your system is built on top of Ethereum and uses Ethereum smart contracts. If there are Ethereum network problems your system will have problems too. We all know about the hard forks.
http://forklog.net/ambisafe-urges-ethereum-to-revise-hardfork-conditions/
And yes, legal risks always exist for all legal structures.

We do understand the Ethereum network risks. The point I was trying to make is that every investor in ETH is quite sensitive to such risks as well.

I understand your point but insurance fund and investment fund may not have ETH in their portfolio (in theory) but your system is still built on top of Ethereum and has the above risks. So the risk of ETH price volatility and the risk of the platform functioning problems are absolutely different risks.
Moreover, the risks of ETH volatility are absolutely the same for all the funds with the same structure so they may be omitted in the comparison.

[SpacemanOne]

3)   Same risks as above.

What same risks? Can you enumerate them, please?

- Fund management
- Exchanges
- Legal
- Networks

- Exchanges - same for all options, not important for the comparison
- Legal - doesn't exist for a single person acting as an individual. He just performs transactions in the blockchains, mostly anonymously. If the money are not criminal there should be no problems. Even if there is some legal risk it has absolutely different nature.
- Networks - don't understand. Do all another options have this risk?

[SpacemanOne]

Waiting for next questions

Where will you take the funds to support the operational expenses of InChain (your team) after the project launch?
Will you use the ICO funds? Or InChain DAO will decide? What will be the approximate size of that expenses for the first year?

Salaries of the developers, soft and hardware. We will form the budget and ask the investors to approve or amend it.
The use of the ICO funds as stated before:
- $750K pre-launch expenses
- $1M the Insurance fund

What about support team, managers, CEO's, secretaries, PR, etc? Office rental?
So the above expenses should be excluded from the project income to get the profits numbers.

[Inchain.io]

2)   Sorry, I can’t understand what you mean here. What is the connection between our fundraising and dividends?

Will be less than 10% if the ICO will have more than $1.75M.

Very simple. Anticipated income according to my analysis is $208 000.
1. ICO result - $1.75M. ROI for ICO investor = 208/1750 = 11.8%
2. ICO result - $3M. ROI for ICO investor = 208/3000 = 6.9%

That's interesting. How was the performance of the fund calculated? A few posts earlier you said that 50%-100% was not a problem for the industry.

You can check my previous posts. I took the number 10% from your financial plan.
https://bitcointalk.org/index.php?topic=1623519.msg16631252#msg16631252

Understand. Our goal is earn more of course.

[Inchain.io]

1)   You compare a fund with an insurance platform pointing out only advantages of the fund and disadvantages of the platform. For example, I assume that the fund managers will be trading at some cryptoexchanges, so why don’t you add a risk that these exchanges may be compromised and the fund loses its money? Same story with the Ethereum network if the fund invests in ETH. I also would not say that there is no legal risk.

Not correct. The risks of compromised exchanges exist for the insurance platform too. Or you won't use any exchanges to purchase the crypto assets?
Or you mean the fund managers will store their funds at the exchanges? No, they won't. They will use the exchanges to buy and sell assets only, not to store them.
You also don't understand the Ethereum network risk. I mean your system is built on top of Ethereum and uses Ethereum smart contracts. If there are Ethereum network problems your system will have problems too. We all know about the hard forks.
http://forklog.net/ambisafe-urges-ethereum-to-revise-hardfork-conditions/
And yes, legal risks always exist for all legal structures.

We do understand the Ethereum network risks. The point I was trying to make is that every investor in ETH is quite sensitive to such risks as well.

I understand your point but insurance fund and investment fund may not have ETH in their portfolio (in theory) but your system is still built on top of Ethereum and has the above risks. So the risk of ETH price volatility and the risk of the platform functioning problems are absolutely different risks.
Moreover, the risks of ETH volatility are absolutely the same for all the funds with the same structure so they may be omitted in the comparison.

Agree. There is no alternatives yet.

[Inchain.io]

Waiting for next questions

Where will you take the funds to support the operational expenses of InChain (your team) after the project launch?
Will you use the ICO funds? Or InChain DAO will decide? What will be the approximate size of that expenses for the first year?

Salaries of the developers, soft and hardware. We will form the budget and ask the investors to approve or amend it.
The use of the ICO funds as stated before:
- $750K pre-launch expenses
- $1M the Insurance fund

What about support team, managers, CEO's, secretaries, PR, etc? Office rental?
So the above expenses should be excluded from the project income to get the profits numbers.

Having the expenses you listed would mean that the business is going well.
Would you purchase the insurance policy as a trader for yourself? 
Also interesting point about Coinbase, what would they do if they got hacked and they do not have enough funds to recover all their accountholders?

And just to sum up:
- Nothing prevents the Inchain fund to generate returns equal to any other crypto currency funds
- Inchain DAO investors may vote for distribution of the income and receive it it the form of dividends
- Insurance-linked bonds may be an interesting investment instrument for passive investment strategies or diversification of the portfolios
- Insurance is needed for the industry
Obviously, there are some risks which are inherent in the industry and associated with any new project.

[BringTheFiat]

ICO in 19 hours and counting!

[disconnectme]

Spacemanone is really doing a good job here, I not that knowledgable in Insurance business financial model which I think is the crux of the matter here, well done to Inchain team also for their professionalism in handling the matter, I believe they are doing well too. I just hope Spacemanone is not here to scare investors away but doing a good job to protect  our investment. At the end of this debate people will really put high weight on Spacemanone opinion. If he recommends the ICO people will invest more in the project but if he did not this could  impact the ICO.

[Hellcrypt]

ICO in 19 hours and counting!

Hurry up..

[electronicash]

Spacemanone is really doing a good job here, I not that knowledgable in Insurance business financial model which I think is the crux of the matter here, well done to Inchain team also for their professionalism in handling the matter, I believe they are doing well too. I just hope Spacemanone is not here to scare investors away but doing a good job to protect  our investment. At the end of this debate people will really put high weight on Spacemanone opinion. If he recommends the ICO people will invest more in the project but if he did not this could  impact the ICO.

educated me as well. he must be real knowledgeable about this. what i jsut keep in mind though its the guy int he stock market business where he mentioned "the best investment is the insurance market" that's just the basis why i get into inchain its like a security for a business so it should be good.

[Sergey_Inchain]

The countdown has begun

http://ico.inchain.io

[Sergey_Inchain]

The countdown has begun

http://ico.inchain.io

The bounty hunter or participant must register here Sir ??

yes

[icorating]

ICO of Inchain starts tomorrow. ICOrating team (icorating.com) is releasing a full review (business model, technical background, team, marketing) of this platform with the evaluation of its investment attractiveness and the review of its strengths and weaknesses.

 Links:  https://docs.google.com/document/d/1KfCUdV6p1kZBj6h4n-BHs-YOaNqC89Bq8h_oRJ7EPqs/edit?usp=sharing

[ttg43]

ICO of Inchain starts tomorrow. ICOrating team (icorating.com) is releasing a full review (business model, technical background, team, marketing) of this platform with the evaluation of its investment attractiveness and the review of its strengths and weaknesses.

 Links:  https://docs.google.com/document/d/1KfCUdV6p1kZBj6h4n-BHs-YOaNqC89Bq8h_oRJ7EPqs/edit?usp=sharing

Thank you, its really huge work.