State owned bank and crypto comunity unite to protect ICO investors in Russia

[randomhumster]

The subsidiary bank of the state corporation VEB Globex together with the Russian Association of Crypto and Blockchain (RACIB) and the CrowdHub Internet project are creating a system for protecting investments in Russian ICOs. The system will start working this year. 

Read more here: https://steemit.com/crypto/@cryptohumster/new-platform-to-offer-protection-of-crypto-investments-in-russia

To tell the strory short the platform will control funds collected on ICO. ICO team will receive funds in portions when they meet milestones. If a project fails all unspent funds are distributed back to investors. Groups of investors will decide if the team fullfils promises.

I personally think that introducing some regulation is a good idea. I also like that the project is driven by both comunity and state bank. But any idea has its cons and pros.

pros:
- Protection from scam projects. As the team doesn't get all the money at once they will need to have a good progress to get funds.
- Protection from fishing. Investment is done on the platform, scenarios with fishing mails like bee token story can't happen (or at least less likely)
- Investors get some control over the project
- Overall process becomes more transparent

cons:
- Crypto is about decentralisation, this platform looks centralised
- Funds will be controlled by platfrom so it can be hacked like an exchange
- It is not clearly explained how projevt reviewer will be elected and rotated. Corruption is a big problem in Russia
- The platform will give too much control for the state over ICO

So what do you guys think? Is it a good idea that can possibly be adopted all over the world or it will fail eventualy?

[limmousine]

I strongly support his system because it can protect investors from scam projects. But I do not agree if the funds are fully held by the platform, because it will only hinder the progress of the project.

We have not been able to ensure that this platform is suitable for use around the world. We see them, whether the platfom is successful or not.

[randomhumster]

I strongly support his system because it can protect investors from scam projects. But I do not agree if the funds are fully held by the platform, because it will only hinder the progress of the project.

I agree, the fact that funds collected on ICO are stored on the platform is not good. People will not like it. It would be better if they found a way to freeze money on your own wallet with some smart contract and send them in portions when comunity approves the progress. But I'm not sure if it is technically possible.

Anyway it is good that there is some movement and discussion on this. We will see how it goes.

[kramchers]

I strongly support his system because it can protect investors from scam projects. But I do not agree if the funds are fully held by the platform, because it will only hinder the progress of the project.

We have not been able to ensure that this platform is suitable for use around the world. We see them, whether the platfom is successful or not.

The plan they are doing is really great, and i admire the brain of this.
But i hope this is all about protection of the people and not controlling the project,
no price protection too! as cryptocurrencies price are based on the demand of the people and can not be dictated and hold by any government or banks.

[michael shikany]

It is true that Russia needs to regulate new ICO, requiring more regulation.
I have invested in a lot of ICO projects, but most of the ICO projects from Russia have fallen below the issue price, so I think the ICO system in Russia may need to be changed greatly.

[Fokl]

It would not have turned out as always: the idea is great, the performers are conscientious, but something always prevents to create the system so that no one was hurt in the future. I'm just afraid of the possibility of state control and regulation in cryptography, ICO.

[amitrovich]

Good governance is something a state owned bank (that nearly got bankrupt) and a poor platform know nothing about. I don't see much clarity in how the fund distribution is going to be governed. Token holders should be voting, not some "investors". Voting mechanism must be on smart contracts for each token. This initiative is yet another example of trying to apply old approaches to a completely new field. Crypto must be about decentralizing!!!

[waorana]

I think it's an excellent system of protection, Russia is confirming one of the few countries that supports the cryptocurrency sector

[cryptotsunami]

I think it is better to have a regulation regarding ICO, besides they will only regulate it during ICO and once the distribution is done it is not already regulated to make sure there is no scam that will happen on the investors. With or without regulation it is still prone to hacking, i believe they already assume it that i could happen an they will provide a better security feature on their platform.

[randomhumster]

It is true that Russia needs to regulate new ICO, requiring more regulation.
I have invested in a lot of ICO projects, but most of the ICO projects from Russia have fallen below the issue price, so I think the ICO system in Russia may need to be changed greatly.

According to statistics on Rissian projects in 2017:
25% of all projects didn't make it to ICO stage
67% didn't raised softcap
5% raised money on ICO but then the project was put on hold
3% Fulfilled promises

So yes, I agree with you. The quality of ICO projects must be improved.

[limmousine]

I agree, the fact that funds collected on ICO are stored on the platform is not good. People will not like it. It would be better if they found a way to freeze money on your own wallet with some smart contract and send them in portions when comunity approves the progress. But I'm not sure if it is technically possible.

Anyway it is good that there is some movement and discussion on this. We will see how it goes.

we know that the bureaucracy in government is like what, any matter is always difficult, even deliberately they make it difficult. may have to be considered again and must find a solution so that funds are not stored by the platform.

The plan they are doing is really great, and i admire the brain of this.
But i hope this is all about protection of the people and not controlling the project,
no price protection too! as cryptocurrencies price are based on the demand of the people and can not be dictated and hold by any government or banks.

we appreciate the steps taken by the government and we always support it, but they must also listen to the aspirations of its citizens.

[randomhumster]

Good governance is something a state owned bank (that nearly got bankrupt) and a poor platform know nothing about. I don't see much clarity in how the fund distribution is going to be governed. Token holders should be voting, not some "investors". Voting mechanism must be on smart contracts for each token. This initiative is yet another example of trying to apply old approaches to a completely new field. Crypto must be about decentralizing!!!

The thing I like is that smth is happening at all. If the idea will fail, russian crypto comunity will get experience. It will also boost the descussion of crypto world in russian society.

As for participants, I personally have some trust in Russian Association of Crypto and Blockchain (RACIB). These guys play a role of devil's advocate for cryptocurrency in all governmental discussions.

[unusualfacts30]

The subsidiary bank of the state corporation VEB Globex together with the Russian Association of Crypto and Blockchain (RACIB) and the CrowdHub Internet project are creating a system for protecting investments in Russian ICOs. The system will start working this year. 

Read more here: https://steemit.com/crypto/@cryptohumster/new-platform-to-offer-protection-of-crypto-investments-in-russia

To tell the strory short the platform will control funds collected on ICO. ICO team will receive funds in portions when they meet milestones. If a project fails all unspent funds are distributed back to investors. Groups of investors will decide if the team fullfils promises.

I personally think that introducing some regulation is a good idea. I also like that the project is driven by both comunity and state bank. But any idea has its cons and pros.

pros:
- Protection from scam projects. As the team doesn't get all the money at once they will need to have a good progress to get funds.
- Protection from fishing. Investment is done on the platform, scenarios with fishing mails like bee token story can't happen (or at least less likely)
- Investors get some control over the project
- Overall process becomes more transparent

cons:
- Crypto is about decentralisation, this platform looks centralised
- Funds will be controlled by platfrom so it can be hacked like an exchange
- It is not clearly explained how projevt reviewer will be elected and rotated. Corruption is a big problem in Russia
- The platform will give too much control for the state over ICO

So what do you guys think? Is it a good idea that can possibly be adopted all over the world or it will fail eventualy?

Who are these group of investors who'll decide whether it's a fail or not? who is to say project reviewer won't push for his own favorite ico? It's a good process to some regulation in but I don't see how this is going to be a success in long term. However, I think some countries will start following their footsteps if this become a success.

[luongdk]

I think it's a beautiful idea, because of protecting from scam every day rise more and more, and we need such, but the other side this project is staying opposite the idea of decentralised cryptocurrency, and while we will be protected from scam somebody will count our money and also will be able to hack us inside this system if something will seem unlawfully. And gov may use it not in our poles, you understand it?

[dumplingsandsushi]

I agree with you on the pros and cons.

I see regulation of crypto as inevitable.
On a philosophical level, I believe the world has become too globalized to ever allow any fully decentralized powerhouse to exist.

A lot of ICOs that are scams, fail projects, or shitcoins seem to be from Russia (Or a russian team located in a different country).
So a means to protect investors is great.

however, one thing I want to add is how relevant will this be in the future if its only for ICOS?
This last year and this year is a complete ICO bubble that will eventually pop.
While ICOs won't disappear as smart contracts are an essential part of the crypto world now, this mad rush of ICOs and money won't last forever.
I suppose a lot of what they do for ICO investors can be applied to crypto as a whole though.

[Ceballos]

ICO investments are going in a really nice way. This will make crypto coin market more popular.
Scam projects are really hurting the market.

[randomhumster]

Who are these group of investors who'll decide whether it's a fail or not? who is to say project reviewer won't push for his own favorite ico? It's a good process to some regulation in but I don't see how this is going to be a success in long term. However, I think some countries will start following their footsteps if this become a success.

That's the right question! So far any side hasn't provided any paticular information. We know it will be users of the system i.e. people who invest in ICO. They aolso will be rotated, so the project is not reviewed by the same people all the time. But nothing mentioned how these people will be chosen.

Taking into account the fact we are talking about Russia I can make a guess. I believe that it would partly major investors, partly people connected to the platform owners and partly people chosen from comunity. I think we can expect some manipulation or curruption scenarios here.

If I would design such platform myself, I would form such team from well know experts from different fields. The team would need a blockchain developer who can check project comits on github, economist to check economic model, lawyer to check legal activities and etc. otherwise their decisions will be questionable. I also think that these people must be well rewarded and at the same time hold responsibility for their decision. Like in some blockchains with PoS nodes signing transaction reserve coins and lose them if it was incorect move to cheat the network.

[CaptainKid]

This is a very good step, on the part of the creators of such legal norms and rules for ICO projects. It is also very good that it is in Russia, as so many projects are being created in this country. I hope this can feel safe when investing in projects.

[lobo13hf]

The subsidiary bank of the state corporation VEB Globex together with the Russian Association of Crypto and Blockchain (RACIB) and the CrowdHub Internet project are creating a system for protecting investments in Russian ICOs. The system will start working this year. 

Read more here: https://steemit.com/crypto/@cryptohumster/new-platform-to-offer-protection-of-crypto-investments-in-russia

To tell the strory short the platform will control funds collected on ICO. ICO team will receive funds in portions when they meet milestones. If a project fails all unspent funds are distributed back to investors. Groups of investors will decide if the team fullfils promises.

I personally think that introducing some regulation is a good idea. I also like that the project is driven by both comunity and state bank. But any idea has its cons and pros.

pros:
- Protection from scam projects. As the team doesn't get all the money at once they will need to have a good progress to get funds.
- Protection from fishing. Investment is done on the platform, scenarios with fishing mails like bee token story can't happen (or at least less likely)
- Investors get some control over the project
- Overall process becomes more transparent

cons:
- Crypto is about decentralisation, this platform looks centralised
- Funds will be controlled by platfrom so it can be hacked like an exchange
- It is not clearly explained how projevt reviewer will be elected and rotated. Corruption is a big problem in Russia
- The platform will give too much control for the state over ICO

So what do you guys think? Is it a good idea that can possibly be adopted all over the world or it will fail eventualy?

Honestly that needs a simple and complex thing to secure investors from scammers in icos. The icos team must need to complete KYC verification before they will be doing an ico and then they must be registered all of their real personal data to the regulators. It's more than enough to protect investors. It's simple if they are making it so easy to do. But all system related to the bank looks centralized.

[randomhumster]

Honestly that needs a simple and complex thing to secure investors from scammers in icos. The icos team must need to complete KYC verification before they will be doing an ico and then they must be registered all of their real personal data to the regulators. It's more than enough to protect investors. It's simple if they are making it so easy to do. But all system related to the bank looks centralized.

Actually it is not that easy. The problem is that there are no laws so far. So if somebody stoles your ETH on scam ICO, you can't really go to police for help. Until the government step in to punish scamers the only thing that can be done is self regulation. I believe this platform represents attempt of comunity to regulate itself.