EOSphere believe retail investor participation in funding start-ups is critical if the blockchain sector is to realise its full disruptive potential. We are pleased to announce we’re partnering with SignalX to bring their Trusted Token Offering (TTO) service to market to restore investor confidence in blockchain venture funding.
“If we want the sector to move forward, we must rebuild capital formation from the ground up. We believe the SignalX TTO model empowers projects globally to raise capital with trust at the core, allowing investors to better assess their risk and make more informed decisions on the projects they choose to support.” Jonathan Hooker - CEO - SignalX
Recent research from Ernst & Young found as many as 83% of ICOs are scams that have destroyed billions of dollars of investor capital. Not surprisingly, investors have retreated and as a result, legitimate innovative projects now struggle to access funds they need to commercialise their concepts.
To restore confidence and trust, the sector challenge is to resolve;
- Investors – Which projects can I trust?
- Projects – How do I prove legitimacy and trustworthiness to investors?
The SignalX TTO re-balances the risk between start-up founders and their investors, by placing investor protection at the core of the funding model. Project trustworthiness and legitimacy is established by making the founders accountable for their claims and performance.
In the SignalX TTO model a projects failure to perform as contracted, may result the in unspent funds held in the custody contracts being returned to investors. Projects establish funding contracts up-front that detail the basis of the eligibility of funds to be released to them through-out the lifecycle. Investors no longer need to trust the project founders to do the right thing they can place their trust the SignalX contracts and independent assurers to protect their interests.
We are excited to be working with SignalX, aspiring start-up projects and regulators to create the new standard for trustworthy capital formation in the blockchain sector. A standard that better serves all market participants and we believe can restore confidence and reinvigorate sector innovation.
The Old World Responds. Recently we have observed the emergence of the IEO (Initial Exchange Offering) concept as the solution to the ICO problem. SignalX believes this to be the traditional centralised market actors attempts to insert themselves into the decentralised ICO funding model. They believe this represents a continuation of the old rent seeking traditional markets model that is at odds with the blockchain sector’s open inclusive nature.
The SignalX TTO model is the first decentralised capital formation model built with transparency and accountability at the core that was missing from ICO v1.0.
If you’re an aspiring project seeking to raise funds, please join us in building a decentralised trusted start-up venture funding model by completing a brief survey.
EOSphere are a passionate group of EOS enthusiasts and data centre professionals currently Standby Block Producers providing services for the EOS Mainnet and Block Production services across multiple sister chains.
Based in Australia, EOSphere are focussed on supporting the EOS community and serving the entire EOSphere through provision of infrastructure, governance and community benefit initiatives.