Gaining 4,800% for the last 3 years, the market for initial coin offerings is now a large industry reaching $100 billion of estimated capitalization.
Considering the manifold of issues that emerged along its development, the market requires a new infrastructure to condition its future sustainability and growth.
Сentralization of crowdfunding platforms, lack of industry-wide standards, and increasing risks are some of the problems that the community should tackle.
Downsides of the growing industry
The majority of the existing crowdfunding platforms accumulate the capital raised over featured projects’ campaigns in their own accounts and transfer the funds to startups only once the investment round is complete. Therefore, both the startups and their investors have to rely upon honesty of the platform administration.
As a relatively young funding model, ICO is yet to become subject to governmental regulations. Until then, this model has the benefit of freedom from bureaucracy and restrictions, such as strict licensing and disclosure policies seen in the “classic” capital markets.
However, such freedom gives room to potentially malicious activities and makes it harder for inexperienced investors to assess coin offerings properly.
Presently, investors have to conduct independent research for every individual project they find interesting in order to make an investment decision. With ICOs gaining popularity, the pool of information to process is expanding rapidly, and is likely to become overwhelming for an individual investor quite soon.
Community sentiment is a valuable parameter to consider before making investments. Yet, the absence of reliable solutions to accumulate, watch, and analyze this sentiment impairs its accessibility and potential for positive output.
Aimwise Project to Introduce its Three-fold Solution
Aimwise project, the sponsor of this article, has a compound solution to aforementioned complications — a dynamic synergy of community wisdom, technology, and in-depth analytics. The team behind Aimwise project is an international ensemble of enthusiasts with considerable backgrounds in fintech, corporate law and finance, banking and blockchain initiatives, as well as PhD candidates holding academic experience in blockchain-related research.
As described by Leo Leu, co-founder and project manager at Aimwise:
“Aimwise creates a comprehensive and dynamic framework for collective wisdom maximization and community engagement in value creation. We strive to build an open and competitive environment that allows the detection of the most promising and investable Blockchain applications complementing the further adoption of Blockchain technology.”
The initiative suggests a combination of three main modules: ICO hosting platform, crowd-incubation framework and assisted portfolio management system.
ICO hosting platform
Aimwise introduces a decentralized ICO hosting platform with an alternative approach to disclosure standards, distribution of funds, and project selection.
Unlike the most of existing platforms that usually tend to list promising projects alongside with shady ventures and scam, Aimwise intends to employ a transparent and decentralised data-driven hosting mechanism based on high compliance standards and community feedback.
A startup, willing to get to the platform, should submit an application package — prospectus — covering numerous operational details about the business and the desired ICO, such as media coverage, potential user base or market opportunity. As an incentive for startups to provide more information, Aimwise offers a discount on the commission fees, depending on the percentage of aspects disclosed.
All received applications have to pass the independent due diligence conducted by an Oracle, an independent rating agency chosen among the nominees by the AIM token holders for each rotation period.
After a project gets the third-party approval, registered Aimwise users can submit questions to its developers, forming a public history of queries and answers.
The next procedure startups pass before getting listed is the community discussion and assessment. During this stage users generate and discuss ideas regarding the project in question. Subsequently the AIM token holders elect a group of delegates, board members, who will decide whether the project is going to be accepted and why.
At the final stage the whole Aimwise community votes for the rationality of board members’ decision.
Aimwise incubation system is designed to organize and employ the collective wisdom. It is a tree-structured environment for online discussions, generation of ideas, crowdsourced market research and team formation.
The system allows any registered user to submit ideas and topics for discussion, initiate surveys, and post proposals to form or join an existing team gathered around the discussed idea.
Thanks to the sophisticated idea-mapping technology, the community output is refined into its most accessible and useful form and utilized to benefit all of its members.
Aimwise portfolio management is an investment tool aiming to facilitate efficient and transparent fund allocation. The technology allows investors to predefine composition of the desired portfolio by a wide range of parameters including industry, capitalization, time horizon, and token price.
Integration with the ICO hosting platform gives access to valuable big data on featured projects, while also mitigating the risk of using inadequate input parameters, since all of the data is validated during the application procedure.
The team behind Aimwise project is an international ensemble of enthusiasts with considerable backgrounds in fintech, corporate law and finance, banking and blockchain initiatives, as well as PhD candidates holding academic experience in blockchain-related research.
Transition and Milestones
Aimwise has already passed through initial beta testing and facilitated its first ICO as a hosting platform. Now the developers are preparing the project’s native coin offering scheduled for September 2017 and have already initiated private presale procedures.
Decentralized blockchain solutions, just like the “classic” database applications, may require 5 to 10 years of adoption and adaptation to the consumer needs, in order to become a reliable solution entailing no risks of unexpected losses for the investors.
While any software solution will benefit greatly from the traditional testing, the means of sustaining a fair and transparent ecosystem with internal community-driven economy are perfected only by practical use within the living market.
Considering these conditions and highly sensitive matters addressed, it would be unreasonable for Aimwise to launch as a purely decentralized application, especially since the decentralization in blockchain restricts the means of bug fixing and updating. Therefore the developers decided to reach the ultimate goal of making Aimwise fully decentralized community-driven application in 3 stages.
Aimwise starts as a server-based platform, able to react to unexpected situations and prevent possible negative consequences. Over the first to stages more and more features will be distributed. Eventually the whole ecosystem will get to the third stage and become completely decentralized.
Hopefully, Aimwise will reach its ultimate goal before the addressed issues become too severe.
This is a sponsored article. It is not investment or trading advice, always do your own independent research.