Project name: IGNITE - igniteratings.com
Investment stage: Pre-sale
Pre-sale/ICO: Nov-Dec
Headline: A decentralized rating system and Index for public offerings (IPO, ICO etc).
Description: Ignite adopts an innovative approach by combining a decentralized ratings platform with an investment index that is powered by the ratings platform itself. Ignite's software automatically deploys the index's capital by way of investment into the highest rated assets.
It works much like any other rating or review platform, whereby Ignite's users are the ones providing opinions and feedback on blockchain-based assets. Ignite refers to their users as the Ignite HIVE, which seems appropriate - all users work together, combining their unique skills, opinions and investment methodologies to generate a collective ratings score.
Another interesting feature of the Ignite solution, is its "Reputation Engine". All individual submissions are, themselves, subject to review and rating by the HIVE members, which acts to build a user's on-platform reputation – HIVE members with low reputation scores have less, or even no influence on the ratings process, while highly reputable HIVE members have more of an impact. In this sense, the community is also self-moderating and the platform resistant to collusion from those who would seek to "game" the system. Ignite records all interactions with its platform on the blockchain, ensuring that all users' activity is fully transparent.
In traditional finance, ratings agencies are incentivized by the issuers, which creates a de facto conflict of interest Ignite points out that this "ratings shop" approach directly led to the financial crisis in 2008. Additionally, traditional ratings are not based on real time information, but are usually written and distributed after the fact; thus value for a trader or investor is limited at best.
Ignite breaks away from the traditional incentive model as its users are actually deploying capital which they contributed during the Ignite ICO. Thus, the token holders are incentivized to rate assets appropriately, as funds are automatically deployed by way of investment into the platform's most highly-rated assets. The HIVE members are also encouraged to revisit and maintain the adequacy of their ratings as assets can be liquidated, or purchased instantly should the HIVE make a collective "decision". The Ignite Index will only invest a maximum of 1% of its current net asset value into any one asset, which makes the token itself an incredible diversification tool in its own right, as it provides token holders with exposure to the highest-rated ICOs.
The end result is a decentralised ratings agency which, according to swarm theory, should provide superior returns to token holders, while providing real time ratings information to the industry in general.
WHITE PAPER:
https://igniteratings.com/white-paper/Team: Both co-CEOs have a solid background, with law, finance and investments in this history, with the CTO having all it takes to lead this project with an impressive solid technical background. They are advised by a few very professional individuals from the financial sector, such as Joe Cammarata of Speedroute, Vikram Nagrani of Hassans, as well as an IBM security expert and others. The team will grow once funding will happen.
Caps: “Unlike most ICOs or crowdsales where 100% of the capital raised disappears into the operating accounts of the business, a minimum of 60% of Ignite ICO contributions will be securely set aside and used solely for the purpose of seeding the Ignite MASTER INDEX”. Until $25 million is reached, 60% goes to the MASTER INDEX, above that number, it goes all the way up to 90% going into the Master Index. Hard cap is 100 million USD. So yes, the cap is high, but most of it is going into creating a serious INDEX, which all token holders will gain from.
Token use:
These are the main features:
1. Access to the Ignite RATINGS platform and the HIVE knowledge store;
2. Ability to participate in the Ignite RATINGS process as a member of the Ignite HIVE (subject to eligibility and reputation).
3. Deployment of a minimum of 60% of all capital contributed via the Ignite MASTER INDEX.
4. A source of real-time income in the form of 50% of gains realised on "winning" trades of the Ignite MASTER INDEX.
5. A reinvestment of 30% of gains realised on "winning" trades of the Ignite MASTER INDEX.
6. Preferential early access pricing on third party pre-ICO and on all future Ignite INDEX IC.
SEC Regulation: Perfect score on their HOWEY test.
https://igniteratings.com/wp-content/uploads/2017/09/Ignite-RATINGS-Securities-Law-Framework-Checklist.pdf Conclusion: The Ignite system provides an interesting solution to public offering ratings, both in crypto ICOs and in the old world IPOs. Due to how things are going with ICOs, it is clear a real rating service, one that can be dependable upon for being authentic and updated, will be required, needed, and desired by many. The timing in my opinion, with regulations hitting us, is perfect. I find this project to be an incredibly solid opportunity with both short and medium term potential, but of course a great long term investment.
(Edited 29/10/17)
