Ignite Ratings looks to differentiate itself from the other blockchain-based token funds projects emerging by integrating crowd opinion into their self-regulating investment platform.
Not only will Ignite handle assets, but it will also disrupt the way ICO’s are conducted, by combining their decentralized intelligence and mixing that with an investment index powered by the rating platform itself.
The software running the platform will automatically invest the capital into the highest rated assets, and than return 50% of profits generated by the index to qualified token holders. Ratings in traditional finance are usually incentivized by the issuers, which presents itself a conflict of interest. On top of this, the ratings are not based on real-time information, making the value to the trader or investor limited at best.
With Ignite’s Rating system, token holders will deploy the capital that they raise during this ICO, being motivated to appropriately rate assets in order to achieve the highest returns possible and therefore have profits returned.
Ignite’s Co-Founder, Christopher Cousins, says:
“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 collective user base, which Ignite Ratings calls the HIVE, uses a reputation system to ensure each member of the community has an appropriate weight. Members with a lesser reputation will have a lesser impact on the rating of an asset, and the opposite is also true with more esteemed members having more impact on the rating of assets. This system is believed to prevent members from trying to game the system, as well as to keep the platform resistant to collusion.
Ignite’s blockchain model records all interactions, ensuring that all user activity is transparent. It also makes the trail of assets and trades easily auditable, if such a need ever arises (for instance in the case of possible KYC or AML regulations).
Since all members are motivated by the common goal of profit, and given the above-mentioned mechanisms in place, the community should contribute honestly and rate assets accurately.
This means that according to swarm theory, Ignite Ratings are to provide returns that beat the market, as well as return a healthy margin to token holders, guaranteeing real-time rating information to the industry.
Ignite will only invest a maximum of 1% into any individual asset, making the Index an excellent diversification tool, providing maximum exposure for token holders. Ignite has already received over 4000 in Ethereum from big investors such as Overstock and SpeedRoute, but has also opened the possibility for anyone to participate in the sale.