PRISMCHAIN in final lap of ICO (but buyer beware) - Smith + Crown
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PRISMCHAIN in final lap of ICO (but buyer beware)

PRISMCHAIN is currently running a crowdsale. The vision of PRISM is to make programming decentralized apps easy by using javascript. There is a lot of media, including a white paper, but there are also some big areas for concern.

PRISMCHAIN is currently running an ICO between mid March to April 11th.

PRISM is a javascript-based blockchain programming environment designed to make developing decentralized applications (DAPPS) more user-friendly. PRISM uses javascript in a couple ways that they say are critical to supporting decentralized computing.

  • More user-friendly, because many people know how to code in javascript. The current system of legal contracting relies on a group of technical experts (lawyers); PRISM hopes to avoid making specialized developers the new necessary technical experts.
  • Better support for objections and permissions. In a blockchain supporting DAPPS, users are sharing and running programs, which themselves might need to reference others’ programs. Their javascript language gives users control over who can reference their code and under what circumstances.

The team also say that they will implement three blockchains. The first is dedicated to transactions. The second is dedicated to apps, data storage, and data transfer. The third provides a customised nameregistrar system, url redirecting to DAPPS addresses and other web layer functionalities. Their existing white paper does not explain the purpose or structure of these, but it does say the next white paper will do it.

Crowdsale Details

This crowdsale is not for the actual currency of the PRISM network (XPRM) but for a token (PRM) which guarantees right of claim for the future release of XPRM. The team claims that PRISM will be ready in May 2016.

  • 5 M PRM tokens: as initial crowdsale supply for public investment
  • Price per 1000 PRM: 0.0175 BTC (approximately $.75 per 1000 PRM at current BTC price)
  • Total Crowdsale Goal: approximately 500 BTC (approximately $210,000)
  • Crowdsale fund destination: 75% Development, 10% Marketing and Community Support, 5% Developers funding for initial network sustain and processes, 10% Legal Contingency Fund

The conversion of PRM to XPRM has not yet been specified.

Some Areas for Concern

There are few details about the founding team other than names and brief bios. The Bitcointalk forum announcement gives no further details, and this omission was a topic of much debate in the forum.

Overall, the bitcointalk forum became toxic quickly, with many members screaming scam and PRISM team members accusing negative posters of being LISK-paid trolls. The forum was shut down On April 1st after 365 comments and discussion (supposedly) moved over to forum.

Another area of controversy so far is the use of escrow in this crowdsale. Escrow services are important because they help prevent developers from simply pocketing investment coins once they’ve been donated. The crowdsale terms reference a third-party escrow but don’t specify it. It appears questions about the escrow’s identity went unanswered in the forums. Read through the bitcointalk postings about ‘escrow’ here.

The unspecified conversion of PRM to XPRM is also a concern. The sale gives an initial valuation of the project at 500 BTC. When XPRM are created, will they issue

The timing of the release is also strange. They close the crowdsale for PRM tokens in early April 2016 but say the product will launch in May 2016, presumably with XPRM. Why are the pre-launch tokens needed if the product is so close to being ready?

Our personal take? If it’s a scam, the founders should have invested less time in the white paper and website, and more time in building out the history/capabilities of the founding team and justifying the sale terms. If it’s not a scam, founders should have spent more time building out the history/capabilities of the founding team and justifying the sale terms.

As with all our ICO announcements, do not take our comments as investment advice. We do not know PRISM and in this case, did not reach out for comment.

Happy hunting for those cryptocurrencies!