By
Kofi Ansah
September 20th, 2022
Ratings become more reliable with Ignite Ratings and its Reputation Engine, where token holders receive reputation scores, depending on which they grow more or less influential in the decision making process.
Finding the most objective way of giving ratings is an extremely debatable topic on any platform. We simply cannot agree on a universal way of giving ratings to any entity, still it is a general consensus that the more number of ratings there are, the bigger the chances of it being a fair one. We have seen some of our favorite movies get poor ratings on Rotten Tomatoes and Metacritic, yet we enjoy them – so, assigning the right ratings is a difficult task indeed.
It is even more true in the case of investments, where you want to assign certain ratings to investors and their assets. Now, in conventional financing, the issuers are at the helm and thus, they assign ratings according to their discretion, creating a conflict of interest. Additionally, we also face the issue of static ratings that do not take into consideration the latest developments and actions of a person. So, even if completely subjective, their value for a trader is limited because of the above mentioned flaws.
Ignite Ratings, a new Investment Platform, breaks away from this status quo as token holders are now incentivized to give appropriate ratings on the platform. The funds from the crowdfunding campaign are automatically distributed into the top assets listed on the platform according to the ratings given by the users. Ignite Ratings is the world’s first self-regulating investment platform, which funding is achieved through a Token Generation Event (TGE) that is going to be held from January 15, 2018.
These funds will be directed to the top-rated assets on the platform. Normally, the financial issuers are in charge of giving the investment to the best performing assets, but since this is a decentralized system and the token holders are expected to be large in number, the ratings model has been adopted. Ignite refers to their users as HIVE since they are modelling their system around the closely knit fabric of an actual hive where information is updated and shared easily among members of the community.
Ensuring Fair Allocations
This is indeed a genuine question that pops up in our minds. Despite the token holders being stakeholders on the decentralized platform, how can one ensure that the best objectively performing assets get the funds? The Ignite Ratings platform has a Reputation Engine that takes care of the member interactions within the system. The token holders themselves are given the reputation scores and the ones with low scores and no concrete backing don’t have their vote counted significantly, while the highly reputable members are much more influential in the decision making process. In this way, the community self-moderates and resists people, who want to influence the market for their own material gains.
According to Ignite’s co-founder Ignite’s Christopher Cousins:
“If a user is capable of making an investment then they ought to be able to explain the reasons why they feel it will be a successful investment. I imagine we will have very interesting viewpoints from a wide demographic, with a variety of backgrounds and skill sets”
The ratings are also very dynamic in nature. The members are encouraged to revisit their ratings frequently with the common goal of more profits driving this interest. Also, Ignite will not invest more than 1% of its entire funding into one asset alone.
Token Generation Event Details
The main token generation will commence from January 15, 2018 onwards. Over 4000 ETH has already been raised from high-profile funders. The cutting edge technology has been developed using Overstock’s T-Zero and SpeedRoute contributions. The pre-sale is already live having started on December 15, 2017.
