The ICO market continues to gain traction, as this relatively new type of raising funds becomes more popular among blockchain startups. Despite the growing popularity of ICOs, there are some issues that put further development of the market at risk.
As far as ICO infrastructure, centralization remains the major concern for existing hosting providers, all of which are to certain degree centralized. Among the other issues is lack of regulation, what makes the market prone to low quality offerings and fraud.
In view of the growing amount of new offerings, it will soon become too challenging for investors to estimate all the investment risks. Besides, a large number of startups without professional teams and mature business models receive high volume of funds, what reduces credibility of the blockchain ecosystem.
In an effort to address these problems, a Chinese startup Aimwise has developed a new solution that will redefine the ICO system as a financing instrument.
The platform combines three modules: ICO hosting platform, portfolio management solution, and crowdsourced idea incubator. The ICO hosting platform will allow users to choose the best blockchain initiatives by using unique filtering mechanism. Although the system is centralized, the company is going to move to a completely decentralized platform.
The portfolio management solution will enable community members to build and manage investment portfolios based on their preferences, while the crowd incubation system offers functionality for market research and idea development.
Aimwise has already completed the initial beta testing and is now planning an ICO which is set to begin in September 2017. The holders of its AIM tokens will be entitled to get a share of the services fee charged by the platform.
Aimwise has developed a set of transparent ICO hosting procedures and high level disclosure requirements for applicants, allowing the community to fully control the selection of applying startups. In order to gather more information, the company introduced a flexible system of discounts on hosting fees, which is expected to encourage startups provide more data on their projects.
With assistance of a publicly elected third-party rating agency, the community reviews disclosed data on each project. Each user can conduct market surveys, post their ideas about the project, and analyze public sentiment. After discussing drawbacks as well as promising features of the applicants, the community members then choose by vote whether the project will be listed on the platform.
The company brings together a professional team of enthusiasts with extensive background in fintech, banking, corporate law, and finance sectors.
Overall, blockchain is becoming more popular in China, especially in the financial industry. Besides, the government is actively urging the development of fintech sector and innovative technologies like blockchain.
The country’s leading private conglomerate Fosun Group has recently invested in Shanghai Distributed Technologies, the company behind the Onchain blockchain project. The conglomerate will apply the technology across its businesses, including those in financial and pharmaceutical segments.