Is this end of the ICO projects, or at least the ones we know today? Crypto market and ICO projects get first certified regulation. Certificates for standardized regulation of ICO projects were presented.

A non-profit and independent institution established by renowned academics and experts, the Preon Institute, has developed an innovative platform for the standardization of ICO projects. The platform is based on a unique and standardized process for the credible certification of ICO projects.

PREON, the Institute for Crypto Community Legislation Development, Research and Certification, issues unbiased, credible and trustworthy evaluations of individual ICO projects.

The evaluation is presented in the form of two different unique certificates: CTC (Community Trust Certificate™) and TBBGC (Token Buy Back Guarantee Certificate™).

These certificates are issued in collaboration with academics and experts in different fields such as bank risk management, project development and industrial technologies, technology evaluation, blockchain technology development, cryptocurrency market and legislation development.

A procedure of ICO evaluation and issuing all certificates is the same. Every expert evaluates project with score from 1 to 5 for the following factors of a project: Legal and Domicile; ICO Team’s past experience and knowledge in the industry; Potential Regulatory Compliance; Suitability of the Industry and Products for an ICO; Reason for ICO financing vs. traditional funding; The project’s “Big idea”; Ability of the Issuer’s Technology to Reflect Changes in Capitalization; Project Funding and Security; Smart Contract Design and BlockChain Network Used; Token Specification; ICO Details; Third-party Products/Solutions used to support offering; ICO Communications; Company Website/ ICO Website; Funding Security.

After the evaluation, all five experts log into an internal form and release their decision. An average value of all five evaluations is calculated to make a final score, for example: 4 + 3 + 5 + 5 + 4 = sum score 21/5 members = average score 4.2. The final score is presented in the form of stars (in this case * * * *) and a clearly written final score (4.2) on each certificate.

 

The meaning of the certificate’s scores from 1 to 5

ICO Grade 5: Strong fundamentals – Very high level of attractiveness. High probability of investment return, low sensitivity to market conditions; ICO Grade 4: Above-average fundamentals – High level of attractiveness. Medium-to-high probability of investment return, considerable sensitivity to market environment; ICO Grade 3: Average fundamentals – Satisfactory level of attractiveness. Considerable risk exposure, high sensitivity to market conditions; ICO Grade 2: Below-average fundamentals – Low development potential, highly speculative project; ICO Grade 1: Poor fundamentals – High default risk The project is not trustworthy. There is no foundation for the successful future development of the project. High default risk in the short term.

The purpose of certificates is to give a clearer picture to potential investors. Therefore, investors will have the opportunity to choose more credible projects and be more protected by experts evaluating the program. 

 

Issuing two certificates – CTC and TBBGC

Both certificates evaluate projects. The first one (CTCgolden or silver) is more designed for projects that are issued to have a long-term impact on the token price but do not have any own profitable services or products.

The second one (TBBGC) is designed for long-term and predictable projects. It presents their long-term profit accumulation and shows the more trustworthy background in the industry. This one is more complex and will be issued for “real sector” projects only (because they have to make a real profit to buy their tokens back from the investors).

Therefore, the PREON INSTITUTE by CCIC™ issues Community Trust Certificate™ in hard copy form, with PREON INSTITUTE original holographic confirmation stripe.

This certificate can be ordered by and delivered only to the founder of the project. The evaluation score is recommended for an adaptation period for 10 days in which the founder or his members of the team can correct some minor mistakes that CCIC™ indicated. After 10 days, the CCIC Council™ closes all decisions and locks the final score number, which can no longer be changed. The results will be published on PREON INSTITUTE’s site. Founder of the project receives one hard copy of the Community Trust Certificate™ and approval for Community Trust Certificate™ badge to be placed where project’s founder wants it (media, blogs, website, etc.).

 

Community Trust Certificate™ – silver

A short-term CTC-silver certificate is acquired by a project that wants to inform the public, potential investors, and business partners that their idea is legitimate, realistic, and carefully prepared. It lasts for two months – in the time of implementation of the ICO – or no later than one month after the end of the ICO.

If the contracting authority wishes to extend it, it can do so if it meets the required conditions. In this case, the certificate is ready for the transformation into the gold version.

 

Below: CTC – silver “hard copy”, size A5+ – certificate specimen

 

Community Trust Certificate™ – golden 

The CTC Gold Certificate includes everything that Silver offers. So the ICO project verification and certification, and in addition, a three-fold revision. This is done in the following periods:

  • One to three months after the end of the ICO: reviewing the execution of the procedures and the execution of promises and commitments made by the ICO in the White Paper.
  • Six months after the completion of the ICO: the processes with which the project took over the business form – the concept of the collective, the start of the processes, the stabilization of operations, the allocation of financial resources, etc., are checked.
  • Twelve months after the end of the ICO: in addition to verifying the processes from the previous point, the achievement of the promised objectives or results are also verified.

 

With the audits of the Preon Institute, the planning and implementation of the project is guided by the guidelines as presented in the White Paper. The public report informs investors, business partners and interested public about the real business of the company, or about the realization of the presented idea and the achievement of the promised goals.

 

Below: CTC – golden “hard copy”, size A5+ – certificate specimen

 

Token Buy Back Guarantee Certificate™ – golden

This TBBGC can be ordered and delivered only to the founder of the project, which is profitable, realistic in “real sector”, and in connection with the industry (means it can accumulate profit on its products or services, and will be obligated to return the part of its profit to the Investors, in the form of Token Buy Back obligation). The evaluation score is recommended for adaption period for 10 days, when founder or his members of the team can adapt some minor mistakes which CCIC™ points at. After 15 days CCIC™ closes all decisions and locks the final score number, which can’t be changed any more. The results will be published on PREON INSTITUTE’s site. Founder of the project receives 1 hard copy of the certificate and approval for Token Buy Back Guarantee Certificate™ badge to be placed where project’s founder wants it (media, blogs, web site, etc.).

The CCIC Council™ issues Token Buy Back Guarantee Certificate™ approval to ICO founders upon executed Smart Contract based on Block Chain Technology while ICO founders are obligated to: Use Crypto Community Investors fundraised investment (in any fiat or crypto currency) by specific and detailed upfront reported business program (White Paper) with check points (Project’s Development Stages) in ICO project’s development phases seen by all project’s investors (combined with scheduled step by step take-done system).

Institute issues Token Buy Back Guarantee Certificate™ with obligation to the founder to Buy Back ICO Project’s Tokens (Put Option Scheme, and more for “Private Sale”).

 

Below: TBBGC – golden “hard copy”, size A5+ – certificate specimen