What's the Point of ICO Escrow?

[ignitiondefect]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

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[MirkoIta]

ICO Escrow is just pointless, same as pointless are ICOs without escrow. ICO's are plan useless.

[ignitiondefect]

I mean, isn't it more important to have transparency regarding how the BTC that is raised is spent? For instance, access to bank statements, etc.?

[freebutcaged]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

Escrow holds the funds until development is done and the promised product(shitcoins) hit exchanges and available for public, means the coins now are openly accessible so those with bags of coins can sell at will because when listed in exchanges it has value and funds are released because the equal value of funds are in hands of investors.

[ignitiondefect]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

Escrow holds the funds until development is done and the promised product(shitcoins) hit exchanges and available for public, means the coins now are openly accessible so those with bags of coins can sell at will because when listed in exchanges it has value and funds are released because the equal value of funds are in hands of investors.

I understand now. Thanks!

[ignitiondefect]

What's the most reputable escrow service for this?

[sunsilk]

What's the most reputable escrow service for this?

There are a lot of reputable escrow here in forum and you can just choose some of them in this link. https://bitcointalk.org/index.php?topic=855778.0

That is the list of bitcointalk escrows and you can see those escrows that are ready to help you with alt coins.

Because some of them are just escrowing bitcoin transactions.

[ignitiondefect]

Thanks. But isn't there a danger that the escrow could just steal the bitcoins?

[shinratensei_]

Escrow will hold all of the funds and never will be releasing them until the dev will have distributed the coin.

Some day, there is ICO A and B was feeling interesting with it and gonna invest some of his amounts. and D will be the escrow for ICO A. And the amounts of B has held by D and anytime if the escrow will be failing or scam escrow still securing the investor's money.

Thanks. But isn't there a danger that the escrow could just steal the bitcoins?

Yes is there, that's why we are need choosing the recommended escrow. Master-p is an evidence for the shit escrow.

[LoyceV]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

You call it "steal", but it's just what an ICO (or IPO in general) is meant to do: raise money for the old owners/creators. Don't make the mistake thinking they do it for you.

[ignitiondefect]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

You call it "steal", but it's just what an ICO (or IPO in general) is meant to do: raise money for the old owners/creators. Don't make the mistake thinking they do it for you.

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

[MirkoIta]

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

That's how any ICO/crowdfunding should work, developers set milestones to reach, agreed in advance with the escrow and whoever is interested in the project. Funds should be locked and released only at those milestones so the devs won't run with the money after releasing a simple wallet clone.

[LoyceV]

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

In that case it's likely they use the money to increase the "value" of their pre-mined coins. One way or another, they do it for themselves.
Don't get me wrong, that isn't necessarily a bad thing, although it would be better if they're open about that goal. In reality, they - for example - make up all sorts of possible future uses for the coin. Most likely, this will never be accomplished. That's why we have hundreds (maybe thousands?) of altcoins, and that's why they're also called "shitcoins".

[Actualiteit]

ICO's are worthless. If you have such an amazing concept it shouldn't be hard to find actual investors and not some suckers who can put in $2 each from their last rupees.

[MirkoIta]

ICO's are worthless. If you have such an amazing concept it shouldn't be hard to find actual investors and not some suckers who can put in $2 each from their last rupees.

Finally somebody with a brain I totally agree with you ICO's are worthless and most of them just scams.

[Bigbrowndingleberry]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

You call it "steal", but it's just what an ICO (or IPO in general) is meant to do: raise money for the old owners/creators. Don't make the mistake thinking they do it for you.

What if the owners/creators/developers take none of the proceeds and its all used to further the altcoin in ways that don't involve paying salaries, etc?

So they would work for free and out of the warmness of their heart? OK. How are you going to live without being paid? You work full time for free haha

[exscudo]

This is just a psychological way to comfort your users. Like, a popular person says that he trusts this project/dev team. This is like engaging a popular singer for advertisement. In fact, it does not give you any guarantee. But still, in any ICO, people look on the escrow agents. And if the project has no escrow, it is often marked as questionable.

[Pursuer]

it creates a false sense of security for the users so that they think that coin is a safe investment and they can give they money to the person asking for it.
in my opinion ICO is meaningless is cryptocurrency world, when everything is copy paste and open source and is done with the help of the community and more like a peer review kind of thing. and as long as developers are seeing altcoins as their cash cow to milk, ICO scam and other scams will continue.

[Warkop]

I think it should be there for the escrow that makes the project ico, because escrow helping to secure a developer so as not to deceive and attract large investors entered in peroyek you make.

[amacar2]

I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

Actually in most of the ICO who will have escrow in middle have certain terms that will prevent devs from just running away scamming after ICO period. They need to deliver what they have promised in start to be able to get 100% of ICO investment and payments are made in parts to devs so that they will not run away and keep delivering updates and what is in their whitepaper.