Crypto Community Intelligence Council™ or CCIC is a highly moral and ethically obligated international group founded and represented by non-profit PREON INSTITUTE with aim to recommend Crypto Community Investors a potential risk, scams, frauds or positive advantages in connection to an ICO or ITO (Initial Coin/Token Offerings) fundraising.
Smart collaboration between Artificial Intelligence Evaluation Banking Program and a Group of academics, entrepreneurs, scientists, professional bank risk experts, and technology developers, gives Crypto Community Investors an evaluation rating of ICO project’s Potential Community Trust.
New unique certification process with approval for Community Trust Certificate™ or Token Buy Back Guarantee Certificate™, the ICO or ITO (Initial Coin Offering or ITO – Initial Token Offerings) fundraising process will be more filtrated, secure and more understandable for the community. Introducing new tools with the minimum set of criteria determined by the CCIC, the ICO founders will have a unique opportunity to improve their projects, as well.
PREON INSTITUTE will issue certification upon CCIC decision only when all outstanding requirements are accomplished by applying companies (founders). The standards for ICO certification will continually evolve based on the stewardship of the Crypto Community Intelligence Council™ (CCIC).
ICO or ITO Certification process will examine tens of important points across key categories. After the evaluation process is finished, the PREON INSTITUTE will issue the ICO project’s Community Trust evaluation score from 1 to 5.
FORMATION OF CCIC - CRYPTO COMMUNITY INTELLIGENCE COUNCIL™
We are pleased to announce the formation of the Crypto Community Intelligence Council™ or CCIC, which consist of a group of industry and technology experts, blockchain technology and crypto currency market experts, bank risk and audit experts and “real sector” entrepreneurs who will help drive the certification standards and protocols (members).
The certification process is limited to the assessment of ICO or the Initial Coin Offering projects and the issuer being in line with the minimum set of criteria determined by the CCIC, some of which may be mandatory for certification approval. CCIC Council will issue certification only when all outstanding requirements have been met by companies (founders) that apply for PREON INSTITUTE’s certification. The standards for ICO certification will continually evolve based on the stewardship of the ICO Certification Committee (CCIC Council).
ICO Certification process will examine tens of important points across key categories including the following:
- 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
- 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
The CCIC Council does not endorse or condone any ICO’s as part of PREON INSTITUTE’s ICO certification process. The certification process only establishes a minimum baseline of criteria that CCIC Council determines that ICO's must meet to obtain certification and must not be construed as an indication of suitability or recommendation.
ICO FILTERING DILEMMA
Finding an ICO that will eventually turn into a highly successful business can be very difficult even for the most experienced investors (just as with traditional investing into startups) even when a product looks truly promising and is backed by a genuine business plan, existing product, and experienced management team. This challenge is multiplied further as many good ideas for use on blockchain technology platform are freshly emerging.
Investors and companies both face steep challenges and risks in order to have a chance to succeed. ICO’s are usually funded by investors that exchange crypto currencies (bought with fiat money) in return for digital tokens (or so called coins) from the ICO project issuer.
While digital assets such as crypto currencies are a form of smart contracts, and smart contracts may control or hold tokens, not all smart contracts or tokens have any inherent value on either public or private markets where crypto currency exchange and trading takes place.
Public blockchain networks such as Ethereum run on open-source code that lets anyone deploy their own smart contract – and modified code where tokens can be created out of thin air – and this is being used as a funding mechanism for ICO issuers to provide tokens to investors in return for their invested capital (comparable to issuing shares).
The Crypto Community Intelligence Council™ or CCIC supports the clear need for best practices to be established for ICO issuers. We will work on establishing a baseline of best practices and standards that every ICO issuer should demonstrate and as part of the ICO Certification process.
- Estimates the level of ICO Project’s Potential Community Trust (with 1 to 5 star recommendation) and issues the approval to ICO issuer that can publicly (web site, crypto community forums, blogs and other media providers) use accredited CTC - Community Trust Certificate™.
- Issues also TBBGC - Token Buy Back Guarantee Certificate™ approval to ICO issuers upon executed Smart Contract based on Block Chain Technology. That way ICO issuers are more obligated to the investors. This Certificate is more complicated and it is designed only for projects that accumulate enough profit to make this offer.
WHAT is ICO or ITO?
The term ICO (Initial Coin Offering) or ITO (Initial Token Offering) refers to a digital way of raising funds from the public using a virtual currency, also known as cryptocurrency. An ICO can also be known as ‘token sale’ or ‘coin sale’.
ICO/ITO issuers accept a cryptocurrency, like Bitcoin or Ether, in exchange for a proprietary ‘coin’ or ‘token’ that is related to a specific firm or project. ICOs vary widely in design. The digital token issued may represent a share in a firm, a prepayment voucher for future services or in some cases offer no discernible value at all. Often ICO projects are in a very early stage of development.
ICOs are very high-risk, speculative investments. You should be conscious of the risks involved (highlighted below) and fully research the specific project if you are thinking about buying digital tokens. You should only invest in an ICO project if you are an experienced investor, confident in the quality of the ICO project itself (e.g. business plan, technology, people involved) and prepared to lose your entire stake. (Source: FCA - Financial Conduct Authority, UK)
- Unregulated space: Most ICOS are not regulated by the FCA and many are based overseas.
- No investor protection: You are extremely unlikely to have access to UK regulatory protections like the Financial Services Compensation Scheme or the Financial Ombudsman Service.
- Price volatility: Like cryptocurrencies in general, the value of a token may be extremely volatile – vulnerable to dramatic changes.
- Potential for fraud:Some issuers might not have the intention to use the funds raised in the way set out when the project was marketed.
- Inadequate documentation: Instead of a regulated prospectus, ICOs usually only provide a ‘white paper’. An ICO white paper might be unbalanced, incomplete or misleading. A sophisticated technical understanding is needed to fully understand the tokens’ characteristics and risks.
- Early stage projects: Typically, ICO projects are in a very early stage of development and their business models are experimental. There is a good chance of losing your whole stake. (Source: FCA - Financial Conduct Authority, UK)