Sergey Besedin, the founder of Russian Blockchain Association has told Bitnovosti about his next initiative, project DEScrow, and how it will bring clarity and transparency to the ICO market.
Sergey: In the last years we witnessed a huge growth of the investments in crypto-economics, this year the volume of investments is going to be even higher. At the same time, many experts claim that only 10% of all blockchain-startups are able to develop their product. As the crypto-economy and the market grows, the demand for the reliable investing tool, such as DEScrow grows, as well.
DEScrow is the first-ever platform for secure ICO- investments with an inbuilt mechanism of decentralized escrow, which allows the backers to control the spending of the finances via voting.
Our project's mission is to make ICO the less risky way of investments and eliminate the excessive distrust of the potential backers to the new startups, giving a boost to the further ICO market growth.
BN: What problem does it solve?
Sergey: The market of blockchain startups is growing rapidly. Nonetheless, there is one crucial vulnerability lying at the heart of all ICO projects: smart-contracts cannot evaluate the success of the startups after the closure of the ICO.
DES will be first in the world decentralized solution for the transparent and fair use of funds, once the crowd sale is over.
BN: How does it work?
Sergey: After the closure of crowdsale, startups, using DEScrow functionality for their campaigns, receive the first tranche of financing and start to implement their roadmap. After the execution of the defined stages of works, they provide detailed reports based on their performance. The decision on the further financing of a campaign will be made by the investors' majority vote, based on the reports.
This procedure will allow eliminating the scam-projects, which aren't intended to develop a finished product and bring to light those, that are ready to follow their roadmap and complete their mission.
BN: What is DES token for?
Sergey: DES token is an essential part of DEScrow ecosystem which will serve as a unit of account and means of payment within the platform and provide a number of benefits for its holders, such as 30 % discount for the DEScrow services and more.
DEScrow project successfully closed its own pre-ICO campaign and now is preparing for the next public stage of fundraising. In the course of ICO campaign that will be launched on 22 of November DEScrow is planning to raise about $13 million for further development of the platform and expanding its services globally. With the help of this money, DES will establish an insurance fund for the investments of the first tranche, as the riskiest investments.
BN: What is your target audience?
Sergey: Descrow will represent a decentralized community of devoted participants, where backers are motivated by an opportunity to invest securely and startups are attracted by the possibility to raise larger funds during ICO, due to greater confidence from the side of the backers, which means the product will be in high demand at the market. Our potential users are both investors and startups from all over the world.
BN: Why will the company succeed?
Sergey: Our project completely eliminates the third-party (escrow agent) problem with the help of blockchain and smart-contracts. For the first time, investors can be insured against 100% losses and fraudulent ICO-projects. DES platform provides investors with the opportunity to participate in the life of the project they trusted their money.
You can find out more information on the project's website.