Initial Coin Offering Token (ICOT) White Paper V 1.4 Buy, Stake, Profit! http://icotokenfund.com
1 Table of Contents Page 2.) Mission Statement & Intro Page 3 & 4.) How the Platform Works Page 5 & 6.) Slow Burn & Value Sourcing Page 7.) ICO Token For Project Funding Page 8.) ICOT Incubator Program Page 8.) Staking ICOT Page 9.) ICO Acquisition Strategy & Whale Liquidity Control Page 10.) Conclusion Mission Statement & Introduction
2 ICOT is a decentralized ICO Investment Platform. In a Marketplace where the average ICO in 2017 has paid a return of over 2,000%, it is safe to say we are experiencing an ICO gold rush! As an inexperienced investor, the dreams of an easy profit usually end in a nightmare of lost earnings due to lack of capital, choosing the wrong projects, investing late or simply not hearing about the ICO all together. The Initial Coin Offering Token was created to fix those problems and add a few new systems to the crypto world. The ICOT Token, our native currency and fuel to our platform, is an ERC-20 Token created and managed by the ICOT Foundation. With a combined trading experience of 20+ years the foundation has created the investment platform to answer the prayers of our token holders. Taking our decades of market experience, relationships, and know how in picking highly profitable ICO's we can distribute those profits back to token holders. Consider ICOT a crypto hedge fund with very limited supply. Simply put - our expert traders pick out the ICO investments and you share in the profits. For the first time ever in the cryptocurrency market profiting from up to 10 Different ICO's is as easy as Buying ICOT, Staking ICOT in your wallet and collecting your share of profits.
3 How The Platform Works Step One: Leveraged Arbitrage To ensure profits for our ICOTtoken holders we created Leveraged Arbitrage. Leveraging our Investment fund's liquidity, coupled with the ever growing need for project financing, the ICOT Foundation will negotiate a special agreement with each and every ICO investment we take a financial position in. We will ONLY invest into ICO Start up projects where we acquire tokens at 40-50% off what the expected market rate will be. By doing so we create an arbitrage type scenario where our profit margins will be subsequently larger than that of a traditional investor purchasing tokens. Simply Put - we buy our ICO tokens at a special discount that isn't available to anyone else thanks to having a large amount of capital to invest with. Step Two: Distribution of Profits The ICOT Foundation will routinely look over ICO Projects. Once we find an ICO worth looking into we will stay in constant contact with their development teams and be intimately involved in the research and day to day operations of their project. After we select and are able to negotiate a stake in each ICO, we will wait for the correct time to begin selling tokens. Whenever we generate a profit it will be broken down as follows: 50% - ICOT Stakers 30% - Burned 20% - ICOT Foundation for future Investments Any funds collected by the ICOT Foundation will be used to pay for ongoing system maintenance/upgrades, paying salaries, organizing ICOT events around the world, ongoing social media advertising, as well as maintaining the liquidity of the ICOT Token. The ICOT Foundation can decide to burn any percentage of its earnings to control the liquidity of the ICOT token. ---- Put simply whenever the ICOT Foundation earns profit from an ICO acquisition or crypto trade the profit from that will be divided as stated above. Look to pages 5 and 6 to see how we add value to our token when paying our investors what they are owed. NO NEW COINS ARE GENERATED AND EVERYTHING IS PAID WITH ICOT TOKENS
4 The return you see is calculated by using the formula below: Profit Generated (PG) - Total Profit Personal Earnings (PE) - Your profit Entire Network Stake (ENS) - Total Coins Being Staked Personal Holdings (PH) - How Many Coins You have Staking P E = P G.50 P H ENS For Example: $50 of ICOT= $1,000,000 1000.50 10,000,000 In this example our investor received a $50 return from the ICOT Foundation's $1,000,000 profit. We came to that return by taking our total profit multiplied by 50 percent. Once we get our number from that equation we can figure out how much each investor will receive, in this example our total to be divided between our Investors is $500,000. Depending on how many coins you are personally staking compared to the total number of coins being staked will determine how much of that $500,000 you receive. In the above example we have 1,000 ICOT Staking out of a total of 10,000,000 ICOT being staked, which is an overall stake of.0001% : $500,000 in profit x.0001 = $50 of ICOT paid to you
5 Slow Burn & Value Sourcing Another mechanism to ensure our token gains value over time, is something we call Slow Burn. It is very important that we fully explain this aspect of our token. Over the first calendar year, The ICOT Foundation will systematically "Slow Burn" 70 Percent of the total coin supply at a rate of 191,780.822 ICOT per day. We will send the tokens to a newly generated (by Smart Contract) Ether address with no private key stored every day making those coins inaccessible for LIFE. These wallet addresses will remain publicly available for the community to see adding another layer of total accountability for the ICOT Foundation. The mechanism of slow burn is truly maximized when you take into account Something we call "Value Sourcing". By Q3 Of 2018, the entire circulating available supply of ICOT will be 30 Million tokens out of the 100 Million tokens we are starting with. That is excluding any burned coins from the ICO, The 30 Percent Burn rate of all profits and any coins the ICOT Foundation decides to burn. For example if the ICOT Foundation sells an ICO position and owes investors 1 Million Dollars USD in value, the ICOT Foundation has to now take the earnings (which would all be in Bitcoin) and go out into the marketplace and do two very important things: 1. In The above Example we would have to put 1 Million Dollars in Real Value into the ICOT token, raising the cost of each ICOT token in the process. 2. Depending on the exchange site liquidity of the ICOT token, the ICOT Foundation has NO CHOICE (Because of the laws of supply and demand) but to pay an ever increasing amount per ICOT in the live markets. To better explain what we mean, if we have to put 1 Million Dollars in real value (profit generated from the ICO positions being sold off) into ICOT Tokens and the available supply on exchanges is only 1 Million ICOT, the ICOT Foundation would have NO CHOICE but to now increase what we are willing to pay per ICOT to fulfill the payout to investors. The amount we pay per ICOT will be determined by the following formula: Amount Per ICOT (API) - What we pay Liquid Supply of ICOT (LS) - Total Coins Available For Purchase Amount Owed (AO) - How Much $ is owed to stakers A P I = LS AO 4
6 In the above formula and the example of 1 Million Dollars Being Owed to investors. Instead of trying to purchase the 1 million ICOT That is for sale on exchange sites for $1 each. The ICOT Foundation would instead pay 4x the amount. In doing so we don't need to try and purchase an entire exchange site worth of coins and The value of the ICOT Token will rise each time this goes on. When you take into account the frequency in which we will have to "Value Source" and the rate in which we will Burn coins, it is safe to say our token has the potential to be increasingly valuable over time. Remember to really see profits maximized this token is a 6 Month to 1 Year HOLD. It is NOT a Get Rich Quick Scheme like most ICO Projects. You have to give the platform time to start burning coins and to initiate value sourcing before the token will begin gaining it's true value.
7 ICOT Token for Project Funding Another Major problem being solved with our token is the issue of low volatility tokens that developers can use for ICO Funding. A commonly overlooked dilemma that major ICO's in the past and major ICO's in the future will continue to face is the volatility of cryptocurrency and its effects on project funding. Traditionally ICO Projects would raise 100 Percent of their funds in either Bitcoin, Litecoin or Ethereum. Whenever these currencies experience market corrections of 10, 20, 30 Percent - you can't forget that ICO Funds disappear for development teams. If a team raises 5 Million Dollars and Bitcoin drops even 10 Percent, that is a $500,000 LOSS that the development would face, while still having to deliver on their promises to Investors! ICOT TOKEN TO THE RESCUE Our token, because of its diversified nature, is perfectly equipped to be the GO TO currency for global project financing. As a project developer it only makes sense to raise funds in a currency whose value is attached to the success of 10 different coins, Not just one. If we have 4/10 ICO holdings drop in value the overall integrity of the ICOT is still maintained. Now as a project developer, you can rest assured that all your eggs are not in one basket. With ICOT, your money is safe from the volatility of the cryptocurrency world.
8 ICOT Incubator Program Leveraging our liquidity and corporate experience in launching and financing projects, we plan to create the ICOT Incubator Program. This Program will work internally in the day to day operations alongside a network of 3rd party project developers, in end to end financing and project execution. Consider us a one stop shop that will help assist developers from start to finish in creating and launching a successful token based project. Bring us your amazing ideas and we will help assist in making those ideas become a successful token on the live market! Staking ICOT An ICOT token is much more than just your typical ERC-20 Token. An ICOT token represents physical ownership of a piece of the ICOT Foundation's ICO Holdings. If Peter, for example, owns 5 Percent of all ICOT Tokens he would own 5 Percent of the fund. Peter can decide to trade, sit on, or stake his ICOT. Selling ICOT is pretty straight forward. Many of our investors are looking for an opportunity to move the ICOT tokens to exchange sites as early as possible and exchange them for Bitcoin, etc. and we promise to make that option available as early as possible. With the first round of ICO funds we plan on starting the application process with every worthwhile exchange on the market to get listed. Making that option available to investors is extremely important and a MAJOR priority for the ICOT Foundation. Staking ICOT is an opportunity for a brand new cryptocurrency trader to create true residual income. When we have the staking mechanism ready to be rolled out it will work as follows: An investor will be issued a unique Ethereum address by Smart Contract. This address will burn any ICOT sent to it and send back the residual profits to the ERC 20 Wallet that the tokens were originally sent from. The process will be very similar to how individuals participate in an ICO. Once you stake your coins you are in the fund for life. Payouts will be sent to your wallet in the form of ICOT tokens that the ICOT Foundation has purchased from the exchanges. -- In the hypothetical situation where for the life of the currency 1 Million ICOT are staking and of those 1 Million ICOT you were responsible for adding 1,000 ICOT. You would receive an ongoing residual or a "dividend" of 1 Percent of all funds ever paid to investors. But remember ALL COINS sent to staking addresses are BURNED.
9 ICO Acquisition Strategy In addition to Value Sourcing our ICO Acquisition Strategy combined with the Whale Liquidity Control Method have the potential to mathematically create a $100+ ICOT. If the ICOT Foundation sees a mismanaged/undervalued project, we will aggressively negotiate a leveraged buyout of the entire project. Using our strategy the foundation will determine a project's value, buy out the project, immediately burn 50% of the purchased coins and continue the ICO's funding exclusively in ICOT Tokens. In doing so we raise the value of the currency we are acquiring and we FORCE a value sourcing situation to occur. For example - if we acquired an ICO for $1,000,000 and the initial development goal was to raise $20,000,000. We would end the Bitcoin, Litecoin, Ethereum payment methods and we would than exclusively accept ICOT about 10% into the project's funding. In doing so from ONE single acquisition, we can redirect $18,000,000 worth of Funding into the ICOT currency. Whale Liquidity Control Understanding the core principles of Value Sourcing, the single most impactful thing on the price of ICOT is the available liquidity of the token on exchanges. To maximize the potential to reach a $100+ ICOT we will enact the Whale Liquidity Control Method. Simply put the "Whales" who will be holding large amounts of ICOT agree to control the liquid supply of ICOT on every exchange we are listed on. Our target goal is to keep the liquidity around 200,000 ICOT per exchange. Each time the amount of ICOT rises above 200,000 the whale group will immediately purchase the ICOT and add it to their personal holdings. In doing so each time we value source the liquidity will be low resulting in an increasing ICOT price. Using the above examples of us buying out an ICO and redirecting $18,000,000 into the currency : 18,000,000 (Amount being redirected) % 200,000 (Amount of liquid ICOT) X 4 = $360 ICOT Taking into account how frequently acquisitions and value sourcing will be taking place. It is safe to say that as long as liquidity can be controlled the price of ICOT will explode.
10 Conclusion The ICOT Foundation, The Development Team, and The ICOT token are here to help brand new cryptocurrency investors have the easiest, most profitable, introduction into this amazing Crypto world we all love. If you are considering investing with us let myself be the first to welcome you to the ICOT family! If you are on the fence follow us on Facebook, stay close to the community and make your decision down the line! Remember success is as easy as, "Buying ICOT, Staking ICOT, and Collecting Profits!"