Founded by Bitdepositary Ltd in 2018, Bitdepositary is a funding community for ICO projects. The goal of the Bitdepositary platform is to make it easier for investors to determine the feasibility and authenticity of new ICO projects. The project is a team effort between various companies, developers, programmers, and marketers.
With the Bitdepositary platform, prospective ICOs will be able to present their project in front of a panel of project managers who are experts in the field. The panel will analyze the project to determine if it a genuine project with real potential. The majority of ICOs out there can’t be trusted and for many newcomers, identifying scams can be challenging. Thus, the Bitdepositary platform solves a crucial problem that has plagued the ICO industry since its inception.
In addition, prospective ICOs will receive feedback from lawyers and tax consultants, which provides an even more in-depth analysis of the ICO. If the project receives a stamp of approval from the panel of project managers and the lawyers and tax consultants, users and community users will get to vote on the project and if the project receives enough votes, the project will receive funding from the community.
Details about the ICO
The ICO open-sale with 30% BDT Bonus has started and runs through September 19th. The open-sale with 20% BDT Bonus goes from the 19th until October 3rd. The ICO with 15% bonus goes from the 3rd until October 17th. The ICO with 10% bonus runs through October 31st. The ICO with 5% bonus goes through the end of the ICO, which ends on November 14th. The price of one token is 0.10 $ each. The soft-cap is $one million. The hard-cap is $50 million
The Problem
While the ICO industry has seen incredible growth over the past few years, scams remain a pressing concern for aspiring investors. When someone decides to help fund an ICO project, they put their trust in the team believing they are helping to fund a real project that has real utility. But when there are more ICOs that cannot be trusted than ICOs that can be trusted, it is difficult to figure out who you can trust. Dowlat and Hodapp, a pair of researchers who study security issues in ICOs, found that as many as 80% of ICOs are scams. There is already a lot of risks that go into investing in ICOs, but all fraudulent activity that goes into the industry compounds the problem. Moreover, recent increases in governmental regulation suggest that more regulation doesn’t necessarily mean fewer scams.
Bitdepositary aims to eliminate these problems. The platform allows users access to lawyers, tax specialists, and ICO experts. This levels the playing field. While experts in the ICO industry can often readily distinguish between an ICO that has the potential for success, an ICO that is bound to fail, and an ICO that is an outright scam, people with less experience are not equipped to make these determinations alone. The platform gives users the tools they need to make smarter ICO-funding decisions.
Scams aren’t the only problem amateurs face. Seeing the potential in an ICO is also a problem in itself. Even people with some financial experience struggle when they first start investing in ICOs because ICOs are an entirely different ballgame compared to more traditional investment options. The Bitdepositary platform also aims to make it easier for beginners to make good investments. The platform allows you to follow more experienced investors. Users are notified via email when one of the investors they follow makes a new investment. This transparency helps guide and inform amateur investors so they can learn as they go. Many investors decide not to fund a project that ends up being successful because they didn’t have the tools to analyze the project appropriately. Having a built-in support system that takes away some of the risk and uncertainty will make it easier for beginners to navigate the ICO industry.
The Method
When a new project is presented on the Bitdepositary platform, a panel of expert project managers inspects the project. They determine how trustworthy the ICO project is. The team that presents the prospective ICO will either receive a rejection notice or they will be approved to proceed to the next step of the process. For the second step, the prospective ICO is analyzed by lawyers and tax consultants and the project has to pass another round of examination. If the panel of project managers and the lawyers and tax consultants all determine that the ICO project is trustworthy, the ICO project is put to a community vote to determine to fund.
The voting system works as followed: Bitdepositary receives 10% of the voting points and the lawyers and tax consultants each receive 5% of the voting points. Community users can have up to 10 voting points, but it depends on their level of experience. Users can have up to 100 voting points. ( A user is a fully-registered and verified user who owns or has owned a minimum of 5000 BDT in the most recent 6-month period, while a community user is a fully-registered and verified user who does not meet the minimum BDT requirement.)
The project moves forward if it receives 55% or more of the overall votes. If it moves forward, money will be invested into the project. If the project does not receive enough votes, the money is refunded.
An important thing to note is that the number of votes that a user has is determined by the user’s investment returns, as well as their reputation and experience level. Since the goal is to weed out scams and fraudulent activity, it is important that the users who have more experience and have more analytical tools at their disposal have more influence in the turnout of the vote.
