Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.
The purpose of the GIIS program is to compensate the investors of unprofitable projects for the funds spent.
The ICO boom that took place on the crypto market in 2017-2019 is remembered by many. At that time, a huge number of token sales were held, which eventually became unprofitable for the investors. Many promising projects at the token sale stage are not developing today, others are developing too slowly. According to statistics from 2021, 95% of 2015-2020 ICO tokens lost 80-98% in value compared to the initial mark. Investors dream of returning at least part of the funds invested in projects and … such an opportunity just appeared.
Just the other day, the Global ICO Insurance System (GIIS) compensation program was launched based on the multi-financial broker LH Crypto. The purpose of the program is to compensate the investors of unprofitable projects for the funds spent. Compensation is not possible for all projects, but only for those that meet the certain criteria. There are also criteria for the program participants themselves.
For those who meet the GIIS criteria, it calculates the compensation value for each token and offers two options to follow:
- Base. The compensation is equal to 100% of the calculated one. Reimbursement period – up to 1 month. The transfer of tokens to the broker is not required.
- Eco. The compensation can be over 100%. The term is 12 months. A transfer of tokens to the broker is required.
Both options require passing a KYC process with LH Crypto.
The main requirement that GIIS makes to the issuer and the token holder is that neither of the two should be under the jurisdiction of the United States. A coin holder wishing to receive compensation will have to confirm their place of residence during the KYC. One also has to confirm that he/she has invested at least 250 euros in the project.
The project must also confirm that at the time of the completion of the ICO, its capitalization was at least 1,000,000 euros. In addition, the token must be listed on at least one crypto exchange. The factoring department of LH Crypto conducts its own expertise for each issuer and decides on the compensation for holders of certain tokens.
At the moment, GIIS is working with several projects: for tokens
For REcoin, LUST and CNK the compensation amounts have already been determined, the EBZ token is under consideration.
Participation in the program is free and both the coin holders and the project owners can apply. For the latter, it is a good chance to reduce their reputational losses, as well as to support their project despite the initial difficulties.
GIIS is the program that the holders of “junk” coins have been waiting for a long time. The evolving DeFi market today offers dozens of different risk insurance tools that weren’t available a few years ago. The ability to offset costs give new life to once-promising projects with good ideas, and supports token holders and coin creators can breathe new life into the already forgotten ICO market today. At the same time, only those whose projects are really interesting and worthy will be compensated for the cost of coins. And in order to calculate the amount of potential compensation in the factoring department of LH Crypto, they developed a formula that takes into account both the current exchange value of the asset and its price at the time of the public sale.
The amount of reimbursement to the holder is calculated according to the formula: (IP-CP) * T, where IP is the ICO token price, CP is the current exchange value of the asset, T is the number of tokens held by the holder.
- For example, at the time of the ICO, the token cost 0.10 EUR.
- Now its value on an exchange is 0.05 EUR.
- The token holder possesses 1000 of these tokens.
- The renumeration will be (0.10-0.05) * 1000 = 50 EUR, which in this case is 50% of the funds initially spent.
However, GIIS provides users with the opportunity to get more – this is precisely why two programs are being implemented: Base and Eco.
By default, the basic program of GIIS Base is applied to each user. It implies a 100% guarantee of refunds immediately after identification of the token holder, which takes about a month.
However, if there are many applications from users for a specific project (in total for a million euros or more), then the GIIS Eco program is initiated – it implies the transfer and freezing of user’s tokens for 12 months, but as a result, the compensation received can be significantly higher than with the basic program. This is due to the fact that a full-fledged ecosystem for this particular token is created in GIIS Eco, along with the listing, implementation of payment instruments and other time-consuming processes.
The token holder independently chooses under which program he/she wants to receive the compensation; this choice must be made within a month after identification. Large investors (with a deposit of 1000 EUR) could receive individual advice from GIIS specialists.
LH Crypto’s Global ICO Insurance System is a fresh and promising solution that can reduce risks for both token issuers and their investors. Two compensation programs allow one to choose between the speed of obtaining the “insurance” and the amount of profit made. As for the advantages for the projects themselves, such a system will provide significant assistance in preserving the reputation and implementing plans for further development. The WIN-WIN-WIN principle provides a win-win situation for all three parties – the issuer, the token holder and the insurer.