Investors of Russian ICOs will be able to decide whether to give out money to developers

Investors of Russian ICOs will be able to decide whether to give out money to developers

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The Vnesheconombank’s subsidiary Globex, the Russian Association of Cryptocurrency and Blockchain (RACIB) and the CrowdHub Internet site, developed by the participants of the RACIB, intend to create an investment protection system in the ICO or the so-called ICO-hub. This is reported by Izvestia.

It is assumed that start-ups will be encouraged to attract RACIB to attract financing under the new scheme. Those wishing to register on the site CrowdHub.io, open on it a purse and an escrow account in the bank Globex.

“Investors wishing to invest money in the project are also registered on the CrowdHub website in their personal account: from there, the funds will go to the escrow account of the startup company in Globex. Cryptocurrency investors transfer money to an electronic wallet – CrowdHub will be responsible for their distribution,” Izvestia explains.

All this is necessary so that investors themselves can control the development of projects. If the developers justify their expectations, they decide by way of voting to issue the next part of the funds for further implementation of the tasks. If more than 51% vote against, the project will be liquidated, and the remaining funds will be returned to investors.

The project is scheduled for launch in March of this year. The test period will last at least 3 months. This time will be required to collect ICO statistics and initial system adaptation.

The opinions of experts on the proposal were divided. Some argue that in the absence of regulation of the ICO industry in Russia, such self-regulation may prove to be a viable idea. Others draw attention to the fact that there is no mechanism for protecting the rights of persons investing in the ICO, which means that the procedure for resolving disputes in this market has not yet been determined.

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