Motivated by the necessity to bring the equality to the market, the team from CoinCrowd has been working on creating a technological infrastructure that would bring the new standard for sales and mark the beginning of a new generation of token sales called the DAICO. The development team has been working on the new solution for more than a year now. This is what they say about their solution: “The rapid and impressive growth of the ICO phenomenon in 2017 sent shockwaves across the financial markets. The world witnessed ICOs turning from what was once a groundbreaking model to raise capital – thanks to the innovations offered by cryptocurrency and blockchain – into a mere speculative tool. If we take into consideration the recent past we will see that there are several examples of well organized ICO scams which caused the participants to lose millions of dollars. The sheer amount of scam projects infecting the market has given a bad name to the very word “ICO”, yet many are still rushing to put their money in ICOs hoping for staggering returns on their token sale participation.
The CoinCrowd team has put its experience to good use, meeting the need to solve these problems in the most efficient way possible. Since the early months of the ICO uprise, we soon understood the need to make token sales more transparent and have some form of guarantee for the participants. Starting May 2017, we began developing a system to separate promising projects from unworthy and fraudulent ones. To give the participants of token sales some solid guarantees, we integrated a milestone control system in our model.
Our protocol is open-sourced so that it can be freely implemented by all kinds of communities, which can create their own platform thanks to an easy-to-use DAPP. The protocol allows them to hold batches of selections for the different projects submitted, and choose the ones who are worthy to enter the tokens stage phase with a vote on the blockchain. Selected projects can use the Automatic Smart Contract Generation feature to easily create customized contracts for the token, the token sale, and the milestone control system. Said milestone control system makes so that at the end of the token sale, the Ether stays locked in a smart contract and is progressively released at the completion of predefined milestones. If token sale participants believe a milestone is not achieved they can vote to block the Ether, and ultimately recover part of it. We have been working on this protocol since May 2017, and our model predates Vitalik Buterin’s famous article Explanation of DAICOs from January 2018, which did anything but prove us that we were on the right track.”
A DAICO is an improvement of the Token Sale model that incorporates some aspects of DAO. The idea was suggested by Vitalik Buterin, the co-founder of Ethereum. The goal of the CoinCrowd is to make the Token Sales more secure by adding contributors in the initial process of the development of the project.
The CoinCrowd protocol allows a DAICO to be launched with ease using a platform for token sales based on automatically generated smart contracts. A system for the control of milestones provides guarantees to the participants in the token sale and liberates the gathered funds only if the predefined milestones have been reached. At any given moment, the owners of tokens can vote to obtain a refund of the invested funds if they are not satisfied with the progress made by the developers behind the project.
The generate DAICOs using the CoinCrowd protocol are automatically included in the decentralized exchange created by CoinCrowd. The CoinCrowd decentralized exchange represents a safe place for the users to negotiate between themselves through the decentralization of the critical processes, such as the management of private keys and the liquidation of assets. At the same time, the platform allows instantaneous transactions to be made using order books outside the chain and pairing function.
This is what the official website of CoinCrowd says about the DAICO protocol: “CoinCrowd provides communities with a perfectly functioning technological infrastructure to select worthy projects and stage fair token sales. The protocol’s Automatic Smart Contract Generation allows project owners to easily generate customized smart contracts while the Milestone Control System offers unprecedented guarantees to all token sale participants.”
The exchange is integrated in a mobile/desktop wallet that guarantees the access to even more users on a global level. More details about the exchange are provided by CoinCrowd oni ts official website: “The CoinCrowd decentralized exchange works alongside the protocol with the purpose of making token sales and cryptocurrency more accessible and fairer. By decentralizing the most critical aspects of the exchange process – like private key management and assets settlement – the exchange never requires users to give up the ownership of their private keys or funds. The exchange is integrated into the CoinCrowd Wallet, allowing to trade Ether and all ERC20 tokens – and possibly other crypto in the future – within the CoinCrowd wallet app on your mobile, with an improved safety for the user.”
The CoinCrowd wallet is a unique tool used to administer all the different participation phases of a token sale and to manage cryptocurrencies as well. It allows the users to exchange multiple currencies with ease, to convert fiduciary money and join token sales and finalize the Know-Your-Client (KYC) processes inside the wallet.
The CoinCrowd wallet supports multiple accounts and it is compatible with ENS, the defined resolutions for Ethereum addresses. The wallet offer a high level of security in a combination with biometric identification and a pin code for access. Moreover, the users are the only owners of their private keys, according to the CoinCrowd official website: “The CoinCrowd Wallet completes the user experience by providing a single tool to manage all the different phases of token sale participation and cryptocurrency management: from buying Ether with fiat currency to finalizing KYC processes, from joining token sales to trading, all thanks to the integrated, decentralized exchange.
It supports multiple accounts, and is compatible with ENS defined resolutions for Ethereum addresses. It also prevents to execute possible failing transactions, saving extra expenses. The wallet is the best option in security, with a combination of biometric ID and user pin access, with users being the sole owners of their private keys.”
The token called CoinCrowd (XCC) functions as a fuel for the entire CoinCrowd infrastructure. While the protocol is open source in order to facilitate massive adoption by the users, the commissions generated during the exchange operations will be used to burn tokens. This way the growth of the adoption and the decrease of the supply create pression on the value of the remaining tokens, which compensates the owners of the tokens on a long-term basis, according to the CoinCrowd development team: “The CoinCrowd Token (XCC) works as the gas of the protocol itself, and therefore powers all the services provided by this protocol. Specifically, the entirety of the exchange’s fees – which amount to 0.2% – are used for token burning.”
The CoinCrowd team is composed of passionate developers that have been working in the blockchain ecosystem for some years now. After the launch of the wallet back in March this year, the company is now launching a prototype of the DAICO protocol, which will be implemented first during the following CoinCrowd token sale. That token sale will be one of the first DAICOs in the world and more details about it are provided by the company: “The token sale starts in June and will adopt the DAICO model. After the token sale, a smart contract will manage the Ether and release it progressively at the accomplishment of predefined milestones. The token price in the public sale will be set to € 0.43. The hard cap is € 15M and the total supply of the XCC tokens amounts to 78,750,709.”
The roadmap of the CoinCrowd platform looks like this:
- March 2018
Wallet: Release of the CoinCrowd Wallet on Google Play and App Store.
- April 2018
Whitelist: The registration to the whitelist opens. By signing up, users are able to take part in the token sale and receive exclusive airdrops.
- May 2018
MVP DAICO Contract: First implementation of the DAICO contract used in our token sale.
- June 2018
Token Sale: The token sale begins. Only registered users can participate.
- September 2018
Desktop Wallet: Release of the CoinCrowd Wallet app for desktop.
- November 2018
Wallet-Integrated DEX: Release of the beta version of our decentralized exchange. The exchange is integrated in the wallet.
ETH-For-Fiat Feature: The new feature will allow users to buy Ether with Fiat currency within the CoinCrowd wallet.
- February 2019
DAICO Protocol: Release of the protocol that allows users to create DAICO platforms.