Estimated reading time: 4 minutes, 35 seconds
Who has the hottest ? In this episode of ICO or NO, Jeremy talks about KICK ICO, debuting August 29th.
Jeremy goes over how KICK ICO plans to challenge the existing crowdfunding and ICO models. It’s like a version of Kickstarter!
What is KICK & what problem are they trying to solve?
KICK describes themselves as a protocol built on Ethereum that’s going to provide for more transparent crowdfunding, and even ICOs.
The problem KICK has identified is that there are still many risks in fundraising in . This is mainly due to insufficient regulation and poor protection of investors against fraud committed by dishonest founders. These problems have led those with less than pure intentions to crowdfund for some great cause, only for the funds specified for a wholesome project to go to some other horrible cause they investors didn’t really want to support.
In order to prevent this fraud, KICK has implemented two requirements that must be followed by these campaigns in order for the campaign to receive the additional KICK ICO along with the investments. The two requirements are:
- They must provide KICK with photo ID, and proof of address in the form of a utility bill or bank statement (as when verifying with a payment system), so they’ll know they are real and who they are.
- The campaign must raise at least $10,000. Smaller campaigns are too risky, because they may become targets for a recursion attack, in which someone creates a campaign, pays his own money (through dummy backer accounts), receiving his own money, AND KickCoins.
The only problem I have with the second requirement is that someone can still run a recursion attack on a larger scale, and I’m not sure if there is anything protecting against that. KICK ICO might want to implement something like a required number of donors across a certain amount of money in order to fight recursion.
Something unique and innovative about KICK is that it’s not just for crowdfunding. No; KICK ICO will actually allow you to start your own ICEA. KICK ICO supports three kinds of fundraising campaigns:
- crowdinvesting, and
Some people are okay with current crowdfunding models: altruistically donating to a project that they care about. However, some people are more investment-minded, and they want to see a return if the project they fund finds future success. KICK ICO has both of these kinds of people covered.
Now everything that we’ve talked about makes up something called the KICKONOMY. It is basically a functioning marketplace within the platform. The KICKONOMY is made up of:
- Projects- ICO, crowdfunding, and cowdinvesting companies
- Investors- People who support crowdfunding projects
- Founder- Crowdfunding projects creators
- KickCoins- Domestic currency as a basis of KICKONOMY
What are the market conditions facing KICK ICO?
Current use cases on the Internet have shown that crowdfunding models and projects are actually sustainable. People are really enjoying being able to invest or donate to good causes or causes they believe in. Along with this, I see us getting to a proven model. However, there is a lot of money behind them as well.
Marrying the concept is a really good idea, I think. It makes KICK ICO unique, and will help it stand out in the future.
KICK ICO has identified weak points in existing crowdfunding models. Mainly, this is surrounding how the funds are paid out. Traditional platforms charge a 5-10% commission fee for the placement, not to mention another 5% given to the payment system, and 10-30% paid by creators as fiat money taxes. KICK ICO is combating this problem by using cryptocurrency. Funds on KICK ICO are transferred to campaign creators practically in their entirety, as cryptocurrency. The platform charges 4% for ICO campaigns and 4% for crowdfunding campaigns. This fee is taken when the project has successfully finished fundraising.
And now, the best for last on question number two. KICK ICO has a completed platform. Most ICOs being released are really just ideas without the tech framework behind them, and are raising money in order to fund the construction of these projects. KICK ICO is different. Instead of a technological roadmap for the future, they already have the technology completed!
Since the platform is already fully operational. You can submit your project at kickico.com and start accepting payments right now.
Who is the team behind the project?
The project is headed by three individuals (Anti A. Danilevski, Alexander Petrov, and Andrew Perepelitsa), along with a team of developers. The team is fairly young, however they do have a pretty vast technical expertise.
What are the details of the ICO?
The ICO will start August 29, 2017 ,and run through September 29, 2017, unless a cap of 200,000 ETH is reached, or roughly $60 million (as of the press time of this video).
They will accept ether or bitcoin, and there are various bonuses the earlier you invest.
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*Patent Maybe Pending