ICO CONSTRUCTOR
What is an ICO An ICO, Initial coin offering, is a form of attracting investments by selling to investors a fixed number of new cryptocurrency units obtained through onetime or accelerated issue. There is a form called an "Initial Token Offering." In addition, the term "ICO" is often replaced by the word "crowdsale."
History The first ICO in history was the placement of tokens for the Mastercoin project in 2013, which collected USD 5 million. Since then, there have been great changes: if 2014 was marked by the launch of 11 ICO projects, in 2017 this number rose to nearly 200. Statistics in early 2018 indicate that this figure is continuing to grow. Many people mention the fact that, for many teams, the launch of Ethereum not only did serve as an example and new benchmark, but also made this process more accessible by providing a platform to start such projects. As a tool to attract investments, ICOs are actively developed not only by IT companies, but also by the "real sector" in April 2017, Kolionovo, an agricultural farm, launched an ICO, which raised 401 bitcoins or the equivalent of more than USD 500,000. ZrCoin tokens issued by a Russian manufacturer of zirconium dioxide are circulating on Waves, another cryptoplatform. By the way, for many people, such platforms as Waves and KickIco are the guides to raising crypto investments. In this case, Waves provides full support for project launch by addressing the issue in a comprehensive way and provides not only the required smart contract and legal support for the project, but also arranges initial contacts with potential investors. However, these services are not for everyone as they are very expensive. The services of KickIco are cheaper, but they have other drawbacks ICO is not launched automatically, and the launch terms and process are not transparent (as the launch requires communication with the KickIco team).
Solvable Problem Every company that decides to launch an ICO project faces at least three main tasks: Legal arrangements for the project Marketing Creating a smart contract The main issues associated with legal arrangements for the project are the search for an appropriate jurisdiction to launch an ICO and the legal status of tokens sold as part of the ICO (including the type of tokens (utility/security), legal registration of rights and guarantees of investors expressed in digital form, etc.) The marketing campaign depends primarily on the types of investors (institutional, non-professional), ways of communicating with target audience, geography of campaign, etc. These tasks are unique for each individual project because the currently low level of legal regulation (which, in some jurisdictions, is even totally absent) requires to approach them individually. Often, the schemes of legal arrangements proposed by legal consultants are based on different interpretations of similar legal norms applicable in similar areas and depend, among other things, on the vision of legal arrangement mechanism shared by the author of the ICO project. There is no less variety in marketing campaigns for ICO projects, which are also implemented in an individual way.
As for the technical side, a smart contract is designed to address an unlimited range of problems unique to each project. The smart contract defines the rules of interaction, the rights of investors, and the ways to implement the rights obtained with the acquisition of tokens. Each project designs a smart contract individually for its needs in accordance with the parameters of its business model.
Despite the diversity of ICO projects, all tokens issued within a single ICO can be categorized and grouped according to their main features, such as: CROWDINVESTING CROWDFUNDING Type of emission Limited Unlimited Limited Unlimited Fixed price of token set in ethers (ETH) Number of tokens known in advance *Maximum number of tokens is limited No *Number of tokens is unlimited *Maximum number of tokens is limited No * Number of tokens is unlimited Ability to apply discounts by dates within the stage. Discounts apply only to dates, but not to the number of tokens. The ICO may include one or multiple stages. A stage has a start date and end date. If a stage is not completed but all the tokens are sold out, then any attempt to buy tokens results in the money (hereinafter, the "cryptocurrency") being returned to investor. * Not all the tokens may be sold; tokens are generated upon request for purchase * Not all the tokens may be sold; tokens are generated upon request for purchase ** The last stage may not have an end date (i.e. tokens may be issued during the Project life The stage may have a soft cap or minimum amount to be raised. If the soft cap is not achieved, the funds are returned to investors * If the soft cap for the stage is less than 100%, then the profit distributed by the Project per token is recalculated based on actually raised funds (For example, if only 20% of tokens have been sold, and this is more than the soft cap, then 100% of profit will be distributed among these 20% of tokens) Redemption and distribution of dividends cannot begin before all the ICO stages have been completed The analysis of the above table leads to conclusion that it is possible to automate the creation of the entire variety of tokens based on their common characteristics.
Solution Based on the above classification of tokens issued as part of ICO projects, ITD LLC developed a smart contract that is a "factory" generating random smart contracts in accordance with the required characteristics. The built-in functionality of the ICO Constructor platform makes it possible to generate smart contracts of projects with the following characteristics: Crowdinvesting is a type of ICO, in which the Project promises to pay token holders a specified portion of the Project's profit. The profit is distributed among the holders in proportion to the number of tokens held. The Project sends a specified percentage of its profit in ethers (ETH) to the smart contract, and then this amount is distributed among the investors. Types of issues: Limited or unlimited. Crowdfunding is a type of ICO, in which the Project promises to a good or service in exchange for its tokens. To receive goods or services, investors send their tokens to the Project's smart contract. Types of issues: Limited or unlimited. Platform The platform allows Projects to create smart contracts with specified parameters for their ICOs. The platform offers a solution for all the technical issues related to the implementation and operation of ICOs.
Technical description of smart contract In technical terms, ICO Constructor is a specialized software designed to create new smart contracts based on user-defined parameters. The process of setting the parameters for a new ICO is conducted on the site. The user-friendly and intuitive interface allows to set both the main and additional parameters of the contract (type of issue, number of issued tokens, stage dates, etc.) After confirming all the parameters, the user pays for the platform services, after which the site will automatically publish a user-created contract on Ethereum blockchain. In this case, the wallet used to pay for the platform services will be designated as the owner of the new contract. After successfully creating the contract, the user can use the contract in the same way as he would use a contract designed independently or received from other platforms i.e. to monitor the number of tokens sold, withdraw funds collected by the contract to his wallet, and pay profit from the project. The advantage of ICO Constructor is its complete automation users do not need to contact the platform and spend time waiting for answers, and they can create a contract in just 5 minutes. All the created contracts have passed a security audit and are not exposed to any attacks known as of early 2018. CUSTOMER Smart contract parameters ETH Smart contract factory SMART CONTRACT 1: CROWDINVESTING LIMITED SMART CONTRACT 2: CROWDINVESTING UNLIMITED SMART CONTRACT 3: CROWDFUNDING LIMITED SMART CONTRACT 4: CROWDFUNDING UNLIMITED
Future vision of ICO projects The development of legal regulations, increasing popularity of blockchain technology, and use of cryptocurrencies allow us to assume that the number of ICO projects will grow and there will be demand for services to create smart contracts. The use of an automated service for creating smart contracts offered by the ICO Constructor platform will significantly reduce the technical costs of issuing tokens/smart contracts within ICO projects, and significantly improve their quality and security due to the massive scale of product offerings. In the foreseeable future and with the emergence of appropriate legal regulations, the legal arrangements are also likely to become a standard task, which will be reflected, among other things, in the cost of these services. Such factors, as a low entry threshold for launching ICO projects and necessary legal regulation, will significantly increase the number of companies that decide to make use of this method to attract investments and sell their goods and services. The customers of ICO Constructor will include companies of all sizes and from diverse economic sectors. The area for using tokens generated by the platform can be limited only by the imagination of company's management and applicable laws. This may include a system of discounts for retail chains, digital income shares of startups and companies seeking investments, digital rights to mined resources, vouchers for coffee and desserts in cafés and restaurants, or payment systems for taxis and car rental services.
Business model of ICO Constructor A smart contract of ICO Constructor that generates random smart contracts in accordance with customer requests provides for various monetization models. The existing functionality enables the platform to generate revenue in the following forms: 1. Sale of a generated smart contract. 2. ETH-denominated commission fee collected from the Customer as part of the ICOs conducted on the platform. 3. Token-denominated commission fees from ICOs conducted on the platform. The profitability of ICO Constructor may be ensured not only by actual sales of ICO-generated smart contracts to the Customers, but also can be tied to the success of projects implemented on the ICO platform. The functionality of ICO Constructor makes it possible to redefine commission fees (or their absence) in project tokens, as well as with regard to collected funds, without modifying the primary generating smart contract.
Another important feature of the ICO Constructor platform is its ability to sell smart contracts for any cryptocurrency or fiat currency. Currently, ICO smart contracts launched on the platform only permit investments and payments in the currency Ethereum. However, the embedded functionality makes it possible to accept investments in any currency (including any fiat currency), but it is currently unavailable to the Customers because there is no appropriate regulatory framework. INVESTOR Investments Project tokens SMART CONTRACT OF THE PROJECT (CUSTOMER) Funds collected for the project as part of ICO CUSTOMER Commission fee from collected funds Commission fee in project tokens ICO CONSTRUCTOR SITE
Additional services of ICO Constructor For greater ease of use, the platform makes it possible not only to create smart contracts with the characteristics required, but it also automatically posts information on the created ICO project in its directory. For most small companies, there is no need to create their own web site for the ICO. The ability to automatically create a project page will greatly simplify their task. At the same time, all features related to monitoring the progress of the ICO, storing and exchanging tokens of the project, accessing and disposing collected funds remain equally user-friendly. For companies that want to have their own custom web site, as well as additional technical capabilities, ICO Constructor provides an automatically generated White Label for accepting investments and full access to the smart contract through ABI of the project contract generated by the platform. Also, to ensure that the service is user-friendly for investors, we are working on the possibility to integrate existing ICO project rating systems into the ICO Constructor platform. This will ensure greater convenience in navigating through potential investment projects as well as sorting and selecting them.
Current status and work plan November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 Developing project architecture 8 Connecting an acquiring bank to the web site 2 Developing smart contract 9 Connecting a cryptocurrency acquirer to the web site 3 Testing smart contract 10 Overall final testing 4 Conducting security audit of smart contract 11 Registering a legal entity 5 Designing web site 12 Opening a bank account and connecting the acquiring system 6 Web development (including blockchain integration) 13 Collaborating with partners and investors 7 Tech launch of icoconstructor.com 14 Launching icoconstructor.com Currently, the project is at the stage of development completion and preparation for production stage (launching the platform for customers). We have tested a smart contract and audited its security, and we are completing the overall testing of the web site. After the testing, we will connect to the bank and cryptocurrency acquiring systems 1, which will make it possible to pay both in fiat and cryptocurrencies for creating ICO smart contracts. 1 Cryptocurrency conversion is provided by a partner who exchanges cryptocurrency for fiat currency and sends it to the platform's settlement account.
The platform is owned by a Russian legal entity authorized to sell computer software (in accordance with the Civil Code of the Russian Federation). According to the plans, all cryptocurrency revenues of the platform will be converted to fiat currency and credited to the settlement account of ITD LLC, along with the payment of applicable taxes and charges. The choice of a Russian legal entity was made largely for the need to legally register the rights of potential partners/investors. The immediate task of the team is to find partners/investors to launch the platform and attract users. A potential area for collaboration with partners could be an ICO of the ICO Constructor platform. This ICO can be arranged as an issue of tokens of the platform, the profitability of which will be generated by cryptocurrency revenues (including both revenues from the sale of computer software (smart contracts) and revenues provided by the fees from projects launched on the platform (see business model of ICO Constructor), the distribution of which will be transparently guaranteed by the smart contract. Thank you for your attention. Sincerely, the ICO Constructor team. icoconstructor.com Info@icoconstructor.com +79192886979 ICO CONSTRUCTOR