What's the Point of ICO Escrow?

[thepo1m]

YOu appreciate Escrow when the developers end up been a scam and try to run away with your Bitcoin, Two good example is Opair and Decloud, Opair investors were able to get their fund but Decloud not becuase Opair used a credible Escrow

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[Bitcoinsummoner]

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

I think much better to choose the big 3 if you seen 3 above monbux is one of the reputative here in forum and i think they do not do what you are thinking because they already dealing with high amount of bitcoin if you can check his trust feedback maybe it can help you to have idea what you will use as your escrow..

[ignitiondefect]

How many milestones are ideal? I guess being listed on exchanges is important.

[MoveCrypto]

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.

I think we will start to see release of the ico money in stages becoming more common.  Komodo was lucky to already have a reputable escrow on the team, so they accepted ico money directly into their 2-of-3 multisignature and can continue using the same 2-of-3 setup indefinitely if they want to.

Iconomi ico crypto is all still sitting in the escrow accounts.  I'm not sure why.  Maybe they don't want to officially take ownership of it until the platform is launched.

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.

This was the purpose of the escrows for projects like Lisk.  The escrows didn't offer any protection to the investors other than the fact that they gave the project their stamp of approval.  If an escrow puts their name on a outright scam where the people disappear, then they probably won't get any more escrow jobs after that.

[olushakes]

I have actually learn from this thread in understanding how this escrow of ICOs work but the issue of release of funds is what I am yet to understand

1. What if the developer approached the escrow that " I need 1btc to pay for marketing won't he still provide"?

2. Also I think more should still be done by the escrow in the sense that the funds should still be held and released in batches if the coin is gradually leaving up to expectation. This will reduce drastically the issue of developers getting the fund then abandon the project and move to another shit coin.

[rafajunior99]

I have actually learn from this thread in understanding how this escrow of ICOs work but the issue of release of funds is what I am yet to understand

1. What if the developer approached the escrow that " I need 1btc to pay for marketing won't he still provide"?

2. Also I think more should still be done by the escrow in the sense that the funds should still be held and released in batches if the coin is gradually leaving up to expectation. This will reduce drastically the issue of developers getting the fund then abandon the project and move to another shit coin.

it seems you need to know and see how it works and whether he is responsible for his work, the most important of escrow is whether he is honest about handling your project.

[ICOGuru]

Coin has to be launched and distributed before devs get funds released.
So i think Escrow is great. At which point anyone cant vote or request the coin to be listed on an exchange.

[freebutcaged]

Moderated threads of announcements means that they don't want people post the truth and scare away their donating investors (if you invest in ICO with moderated thread you are practically donating your money).

Real ICO has any value when dev team are actually presenting an idea which will make money, otherwise escrow or no escrow they are literally selling absolute zero valued string of codes in the name of a token or coin like mass scam and egaas scam and other 99% of all ICOs.

An example of successful and real ICO with a legit money making idea behind it would be Iconomi, just study and research their project to see how it was a success for investors.

Escrows only care for their fees and just act as a trusted third party, they will then release the funds as soon as the dev team says so no matter if the project reached it's goals.

[Bemerand]

Simple. Protect the investors!

[CROYA86]

Simple. Protect the investors!

ico escrow is a third person who can be trusted or guarantor agara investors who will join it will believe, that this is not a scam

[temich322]

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.

Hahahaha last rupees haha

[kwaskoff]

What about DAO's escrow?

[Casatokuser]

So if I would like to Launch an ICO, does it make sense to use a reliable escrow service
or would you say it doesn't matter?

[bit-freedom]

So if I would like to Launch an ICO, does it make sense to use a reliable escrow service
or would you say it doesn't matter?

Frankly speaking, I will have more confidence if the ICO has a reliable escrow and funds are released to the development team when each milestones are made. This is usually what I look out for in the white paper.

[Zadicar]

So if I would like to Launch an ICO, does it make sense to use a reliable escrow service
or would you say it doesn't matter?

Frankly speaking, I will have more confidence if the ICO has a reliable escrow and funds are released to the development team when each milestones are made. This is usually what I look out for in the white paper.

Good point and these kind of indications which would really make you tell that the project is good and as you said i do have trust and confidence if the funds are being escrowed than on those project who arent using this kind of service since they can anytime ran off with the funds and this is the start on why there are some ICO's do become scam in the end because of such behavior stealing funds since its not being escrowed.

[Casatokuser]

OK, good to know.
Thank you for your opinions!
I am interested in crypto currencies for a while but never give
much interest in ICOs.
The runaway problem as an abuse of this basically good idea what an ICO is for
must indeed be solved to be trustworthy to any investors.
Which escrow services would you recommend for an ICO issuing ERC based tokens
and taking Bitcoin and Ether for this?

[igorsha]

Hi all,
did anyone see good example of ICO escrow?

[tsaroz]

So, the point is when actually escrowed, if the investor gets nothing on their investment, the issuer of token would also get nothing. It surely makes the issuer more serious about the project.

[allthebitandbobs]

wish i knew you could escrow a ICO  sigh sigh .Guessing my iCO would have be a success if i did .As the song goes nothing i can do about it now

[lunnatic]

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.

I thought it was just an intermediary only. Even though the escrow will give access to the funds of ICO. But it depends on escrow they use usually escrow secure the funds of ICO until they release the coins to investor so they feel secure getting their shares.