The ICO Fund Supervision Scheme is a transparent protocol to ensure ICO investments are properly and transparently allocated.
The ICO Fund Supervision Scheme is offered by ICO-Class-Action.org to those ICO issuers striving to showcase proper management of their ICO investors’ funds. The goals of the protocol are to prevent exit scams and to reduce information asymmetry between the parties.
The protocol consists of two key phases and their respective components:
-ICO phase: statement of deposits, Fiat conversion plan, bank accounts, expected monthly expenditures and investors’ data.
-Post-ICO ongoing phase: supervision of wallets and accounts, periodic auditing of the project development.
The ICO phase audit aims to give confidence to investors and assurance that a firm plan to manage and control funds has been set up.
The post-ICO phase will allow investors to keep track of the team’s expenditure and adherence to their plan, while ICO Class Action will hold investors’ contact details and provide updates on the ongoing audit reports.
Whilst the plan cannot entirely prevent the misappropriation of funds, it clearly represents a significant step towards clarity and safety.
We are proud to embark on a journey that will differentiate those issuers aiming to pursue legit entrepreneurial projects against those who will likely fall into misleading schemes such as exit scams, non-delivering ICOs, and improper use of funds in general.
With a new, reignited confidence in the ICO industry, we look forward to a new era of the Crypto Ecosystem.