In today’s challenging economic climate, it is estimated that over 80% of ICOs will likely fail. This can be down to poor execution of what may have been a good idea, or flawed business models and other problems. In addition, a lack of originality plagues the sector. Many new companies simply copying what others are doing – hardly a recipe for success.
For the fledgling cryptocurrency industry, this is a serious headache both for financial backers wary of involvement with crypto startups, and for genuine startups that struggle to secure the financial backing they require to grow and thrive.
Set to launch in a few months, CryptoProfile will create a platform where ICOs have an opportunity of pitching to contributors in a risk adverse environment.
According to publicity material, CryptoProfile exercises due diligence on behalf of participants to ensure that they participate only in the ICOs with the highest likelihood of success. But how does this system actually work? Before CryptoProfile accepts an ICO for listing, it gauges the viability of the business in terms of its ability to respond to known problems, as well as its place within a crowded market. A review of the startup’s development team is undertaken to confirm the members are genuine. The project’s technical integrity, the utility of the coin, and regulatory compliance are also looked at.
For an ICO project to be listed on the CryptoProfile platform, a payment of $100,000 must be paid to cover marketing costs. In return, the same value of CP tokens (CryptoProfile’s native cryptocurrency) will be allocated to the company. The tokens will be locked in an escrow account for six months, or until the startup’s native tokens are listed on an exchange. Following this, the startup must allocate 10% of its tokens to CryptoProfile.
CryptoProfile states that this 10% share of tokens will be distributed via an airdrop to CP token holders, thereby generating community interest in the project. In this way, CP token holders will be rewarded every time a new ICO startup is accepted by the platform, and can support it further if they choose to.
The brains behind CryptoProfile claim that the novel business model is superior to the system of trial and error that is currently standard. In addition, they say the due diligence and airdrop system provide a high level of quality control, meaning only the best ICOs get listed, thereby increasing security and lessening the risks for prospective backers.
At the same time, CryptoProfile is offering geniune crypto startups the chance to raise much-needed capital, as well as market their project to CP token holders. According to the team, CryptoProfile has been fully supported and funded by Exshell Exchange and MUXE, a blockchain-based real estate platform.
CryptoProfile’s presale runs from January 1st to 31st, with the token generation event beginning on February 1st. Early sign-ups will be offered discounts while the presale is on.
CryptoProfile is aiming to improve token sale contribution by making it safer for those looking to back a startup project, at the same time as providing legitimate startups with the opportunity to generate the funds they need to grow their projects. If it can succeed in its dual aims, CryptoProfile will not simply have carved out a niche for itself in what is a crowded and turbulent field, but also improved the cryptocurrency industry generally.
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