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

[wrxbuzz]

OP, how is the legal thing going? Will you have ico on time? I hope no more postpone.   

[1714245484]

1714245484

[Sergey_Inchain]

OP, how is the legal thing going? Will you have ico on time? I hope no more postpone.   

Legal things almost finished. So many features we must concern. And so few real cases and legal professionals who know about crypto economy well))
We plan to publish updates tomorrow or the day after tomorrow.

[ttg43]

Any hangouts before ICO?

[Sergey_Inchain]

Any hangouts before ICO?

Yes. Friday or Monday.

Interesting interview about Inchain: http://www.smithandcrown.com/dao-delivered-insurance-crypto-holdings-interview-inchain/

[someone111]

Let's say I have altcoins (for example XMR) worth 1 BTC on an exchange. As I understand, you don't insure XMR directly. But could I just insure the equivalent value in BTC and this be considered alright?

I guess yes. But if the exchange is hacked and all BTC gone, I would keep my XMR and get "bonus" BTC. On the other hand if all XMR is stolen from the exchange and BTC is save, I would get nothing. Right?

[ttg43]

Let's say I have altcoins (for example XMR) worth 1 BTC on an exchange. As I understand, you don't insure XMR directly. But could I just insure the equivalent value in BTC and this be considered alright?

I guess yes. But if the exchange is hacked and all BTC gone, I would keep my XMR and get "bonus" BTC. On the other hand if all XMR is stolen from the exchange and BTC is save, I would get nothing. Right?

yep

[Sergey_Inchain]

Let's say I have altcoins (for example XMR) worth 1 BTC on an exchange. As I understand, you don't insure XMR directly. But could I just insure the equivalent value in BTC and this be considered alright?

I guess yes. But if the exchange is hacked and all BTC gone, I would keep my XMR and get "bonus" BTC. On the other hand if all XMR is stolen from the exchange and BTC is save, I would get nothing. Right?

Yes, the most important thing follows: if you pay insurance premium then Inchain insures your cryptocurrency value on the exchange. You can have nothing on the exchange, but if you pay for insurance then Inchain insures it.

[someone111]

Let's say I have altcoins (for example XMR) worth 1 BTC on an exchange. As I understand, you don't insure XMR directly. But could I just insure the equivalent value in BTC and this be considered alright?

I guess yes. But if the exchange is hacked and all BTC gone, I would keep my XMR and get "bonus" BTC. On the other hand if all XMR is stolen from the exchange and BTC is save, I would get nothing. Right?

Yes, the most important thing follows: if you pay insurance premium then Inchain insures your cryptocurrency value on the exchange. You can have nothing on the exchange, but if you pay for insurance then Inchain insures it.

That's actually quite cool. And I will quote you on that one! Please do not call it ever insurance fraud if that amount of money is not in the exchange. That gives me as customer a lot more peace of mind. I want to be flexible. Sometimes have my coins in the exchange, sometimes elsewhere.

[luxuryvilla]

Do you have the link of last hangout? I remember you said you would record the second hangout and post it on youtube.

[ttg43]

Do you have the link of last hangout? I remember you said you would record the second hangout and post it on youtube.

Several moments of the meeting - https://www.youtube.com/watch?v=arYVrqo-ICI

[Sergey_Inchain]

Hi there,

As you may be aware, we’ve been busy figuring out the best possible legal structure for our platform. Obviously, our top priorities are safety of the investments, deep involvement of the stakeholders and legitimacy of the business.

Ultimately, we realized that due to the absence of the industry best practices and because our platform is very innovative, we have to be pioneers in many areas. However, we did manage to come to a conclusion of what we should change in our concept to make the project doable.

We will publish an article describing these changes in details in the next couple of days. As for now, we can name the most important changes.

1) We are selling new value coins rather than DAO tokens during our ICO
2) These new altcoins can be spent as follows:
- To invest in the DAO. The DAO is not a legal entity.
- To purchase insurance policies
- To buy insurance-linked bonds
3) We create a legal entity, which will be servicing the platform

More information is coming soon.
You can contact us in Inchain Slack: http://slack.inchain.io
We will be hosting a google hangouts call next Tuesday, the link will be published soon. Feel free to join.

Questions are welcomed as usual.

[mobilestrike]

Hi there,

As you may be aware, we’ve been busy figuring out the best possible legal structure for our platform. Obviously, our top priorities are safety of the investments, deep involvement of the stakeholders and legitimacy of the business.

Ultimately, we realized that due to the absence of the industry best practices and because our platform is very innovative, we have to be pioneers in many areas. However, we did manage to come to a conclusion of what we should change in our concept to make the project doable.

We will publish an article describing these changes in details in the next couple of days. As for now, we can name the most important changes.

1) We are selling new value coins rather than DAO tokens during our ICO
2) These new altcoins can be spent as follows:
- To invest in the DAO. The DAO is not a legal entity.
- To purchase insurance policies
- To buy insurance-linked bonds
3) We create a legal entity, which will be servicing the platform

More information is coming soon.
You can contact us in Inchain Slack: http://slack.inchain.io
We will be hosting a google hangouts call next Tuesday, the link will be published soon. Feel free to join.

Questions are welcomed as usual.

Do you provide that coin only for insurance? will it not have any other purpose? A successful coin often comes as that which will have all the purposes as a normal currency has which bitcoin is going to adopt.

[Sergey_Inchain]

Hi there,

As you may be aware, we’ve been busy figuring out the best possible legal structure for our platform. Obviously, our top priorities are safety of the investments, deep involvement of the stakeholders and legitimacy of the business.

Ultimately, we realized that due to the absence of the industry best practices and because our platform is very innovative, we have to be pioneers in many areas. However, we did manage to come to a conclusion of what we should change in our concept to make the project doable.

We will publish an article describing these changes in details in the next couple of days. As for now, we can name the most important changes.

1) We are selling new value coins rather than DAO tokens during our ICO
2) These new altcoins can be spent as follows:
- To invest in the DAO. The DAO is not a legal entity.
- To purchase insurance policies
- To buy insurance-linked bonds
3) We create a legal entity, which will be servicing the platform

More information is coming soon.
You can contact us in Inchain Slack: http://slack.inchain.io
We will be hosting a google hangouts call next Tuesday, the link will be published soon. Feel free to join.

Questions are welcomed as usual.

Do you provide that coin only for insurance? will it not have any other purpose? A successful coin often comes as that which will have all the purposes as a normal currency has which bitcoin is going to adopt.

In additional as described above, this coin can be used as any other altcoin. Directly after ICO it will be listed on exchanges.

We intend to evolve Inchain and include new risks in Inchain insurance portfolio. So, we expect that Inchain coin will have a good capitalisation and liquidity.

[mobilestrike]

Hi there,

As you may be aware, we’ve been busy figuring out the best possible legal structure for our platform. Obviously, our top priorities are safety of the investments, deep involvement of the stakeholders and legitimacy of the business.

Ultimately, we realized that due to the absence of the industry best practices and because our platform is very innovative, we have to be pioneers in many areas. However, we did manage to come to a conclusion of what we should change in our concept to make the project doable.

We will publish an article describing these changes in details in the next couple of days. As for now, we can name the most important changes.

1) We are selling new value coins rather than DAO tokens during our ICO
2) These new altcoins can be spent as follows:
- To invest in the DAO. The DAO is not a legal entity.
- To purchase insurance policies
- To buy insurance-linked bonds
3) We create a legal entity, which will be servicing the platform

More information is coming soon.
You can contact us in Inchain Slack: http://slack.inchain.io
We will be hosting a google hangouts call next Tuesday, the link will be published soon. Feel free to join.

Questions are welcomed as usual.

Do you provide that coin only for insurance? will it not have any other purpose? A successful coin often comes as that which will have all the purposes as a normal currency has which bitcoin is going to adopt.

In additional as described above, this coin can be used as any other altcoin. Directly after ICO it will be listed on exchanges.

We intend to evolve Inchain and include new risks in Inchain insurance portfolio. So, we expect that Inchain coin will have a good capitalisation and liquidity.

That is a good decision . People like any altcoin which are listed on exchange . So they feel themselves as secure while it have on exchange. and the traders also like coins for them on exchange. Try to add it to bigger exchange to get a good value for your coin.

[Sergey_Inchain]

Hi there,

As you may be aware, we’ve been busy figuring out the best possible legal structure for our platform. Obviously, our top priorities are safety of the investments, deep involvement of the stakeholders and legitimacy of the business.

Ultimately, we realized that due to the absence of the industry best practices and because our platform is very innovative, we have to be pioneers in many areas. However, we did manage to come to a conclusion of what we should change in our concept to make the project doable.

We will publish an article describing these changes in details in the next couple of days. As for now, we can name the most important changes.

1) We are selling new value coins rather than DAO tokens during our ICO
2) These new altcoins can be spent as follows:
- To invest in the DAO. The DAO is not a legal entity.
- To purchase insurance policies
- To buy insurance-linked bonds
3) We create a legal entity, which will be servicing the platform

More information is coming soon.
You can contact us in Inchain Slack: http://slack.inchain.io
We will be hosting a google hangouts call next Tuesday, the link will be published soon. Feel free to join.

Questions are welcomed as usual.

Do you provide that coin only for insurance? will it not have any other purpose? A successful coin often comes as that which will have all the purposes as a normal currency has which bitcoin is going to adopt.

In additional as described above, this coin can be used as any other altcoin. Directly after ICO it will be listed on exchanges.

We intend to evolve Inchain and include new risks in Inchain insurance portfolio. So, we expect that Inchain coin will have a good capitalisation and liquidity.

That is a good decision . People like any altcoin which are listed on exchange . So they feel themselves as secure while it have on exchange. and the traders also like coins for them on exchange. Try to add it to bigger exchange to get a good value for your coin.

We will) thank you

[pawel7777]

Haven't followed this thread lately - have you managed to provide any proof of identity of any of the dev team? Perhaps any video interview etc?
Have you decided on escrowing funds? If so, any details?

[Hhampuz]

Haven't followed this thread lately - have you managed to provide any proof of identity of any of the dev team? Perhaps any video interview etc?
Have you decided on escrowing funds? If so, any details?

You are a bit late to the show. Distribution is pretty much done, trading is live, partnerships are being made etc.

[pawel7777]

Haven't followed this thread lately - have you managed to provide any proof of identity of any of the dev team? Perhaps any video interview etc?
Have you decided on escrowing funds? If so, any details?

You are a bit late to the show. Distribution is pretty much done, trading is live, partnerships are being made etc.

Meanwhile on the website:

Inchain ICO starts on 12th 26th October 2016 and will last four weeks

That's 6 days from now.

Anyhow, the questions still stand

[Hhampuz]

Haven't followed this thread lately - have you managed to provide any proof of identity of any of the dev team? Perhaps any video interview etc?
Have you decided on escrowing funds? If so, any details?

You are a bit late to the show. Distribution is pretty much done, trading is live, partnerships are being made etc.

Meanwhile on the website:

Inchain ICO starts on 12th 26th October 2016 and will last four weeks

That's 6 days from now.

Anyhow, the questions still stand

Wrong thread haha. My bad, too late to browse BCT.

[SpacemanOne]

My calculations show that InChain profits are overestimated in their financial model.

'Total amount insured' is set to 150 000 BTC by the financial model author. This is a bit 'optimistic' estimation.
150 000 BTC is approximately 1% of the TOTAL BTC market cap (15,9M BTC according to http://coinmarketcap.com/). I think if InChain hits 1% of their potential market during the first year it will be a success. But the potential market is far less then the total BTC market cap.

I did my own market analysis (if you are interested I can post the detailed info at some blog later) and the numbers are the following:
- The total BTC amount stored at the exchanges is close to 4M BTC. I mean all the exchanges that exist on the market
- The total volume of BTC stored at web wallets is about 0.65M BTC

Final result: 4.65M BTC is the total potential market of InChain. Please pay attention to the word 'potential'.
InChain team limits its market very striclty.
We can roughly estimate the share of 12 exchanges/wallets offered by InChain.
Exchanges: Coinbase, Poloniex, Kraken, Yobit, Bittrex, BTC-e. No bitsquare here, the reason is in my next post.
My calculations show 860K BTC.
Wallets: Blockchain.info, jaxx, mycelium, electrum, coinomi.
Let's assume their total share is 20%. So their bitcoin market is 0.65*0.2 = 130K BTC.

The sum of the above two markets is 860+130 = 990K BTC that is almost 1M BTC.

The total amount of funds that can be potentially insured by InChain is 1M BTC.

What percent of 1M BTC will be insured during the first year? As I wrote at the top 1% is a success.

1% from 1M BTC is 10 000 BTC.

So in the financial model table you should put 10 000 BTC instead of 150 000 BTC.

Total income for the scenario 1 will be 330 BTC ($208 000).

If you think the amount insured will be more than 1%, you can do your own math, it's simple.

I assume $1 750 000 will be collected during the ICO. 

That is 208/1750 = 12% ROI for the ICO participants. It will be even less because operational and other expenses are not included. We also don't know how the profits will be distributed because the decision will be voted by the DAO.

If the ICO amount is bigger than 1.75M the ROI will be lower too.

12% yearly ROI for the crypto industry is incredibly low taking into account the enormous risks involved. This ROI is almost the same as the expected ROI for the InChain insurance fund. So why do we need all those insurances, bonds, etc. if we can just deposit money to the fund and share its profits?

It's worth mentioning the total InChain ROI depends heavily on the insurance fund performance. The insurance fund strategy will be defined by the DAO and is fully unpredictable. The financial model gives no information about the insurance fund policies and instruments. Crypto markets are risky, much more risky than the traditional economy ones.

There are more interesting questions about the financial model.

Who and why will purchase the bonds? If at least one exchange/wallet is hacked during a year, the investor loses almost all his profits (10-8.33=1.67%). Nice instrument for the traditional fiat economy but will the crypto world like it? Please remember the bonds are traded for BTC. Bitcoin volatility is high. Does it make sense to add the risks of losing the part of your BTC investment if just holding your funds in BTC makes a great profit in USD?