Research

ICONOMI Raises Over $10 Million in ICO

ICONOMI, a decentralized crypto-fund platform, has raised just over $10 million in its ICO (crowdsale), giving away 85% of the total token supply to investors in the ICO. ICONOMI is a token on top of Ethereum, that is slated to pay weekly dividends based on the demand and performance of its flagship funds, as well as a future fund management platform planned for next year. In the ICO, ICONOMI raised money via Bitcoin (BTC), Ethereum (ETH), Lisk (LSK), US dollar (USD), and Euro (EUR).

The ICO ran for 5 weeks, from August 25th 2016 to September 26th 2016. However, fiat deposits that were sent before the deadline (USD and EUR deposits) but reached ICONOMI after the deadline were also considered. At the end of the ICO, the company raised:

  • 6,901.2770 BTC, around 4,210,883 USD
  • 199,205.8296 ETH, around 2,557,802USD
  • 3,995,992.5646 LSK, around 895,897 USD
  • 2,329,478.91 EUR, around 2,599,018 USD
  • 131,454.20 USD

The ICO was for 100 million ICN tokens. There is no inflation planned for these tokens. 85 million (85%) of these are to be distributed to the ICO participants based on their contribution, along with a bonus for early investors. The bonus structure was –

  • 15% in the first week
  • 10% in the second week
  • 5% in the third week

There was no bonus after the end of third week. Of the remaining 15 million, 2 million (2%) was reserved for advisers, 8 million (8%) for the team, 3 million (3%) for future team, and 2 million (2%) for bounties. Bounties consisted of Social media bounties (Twitter and Facebook), Bitcointalk bounties (Signature and Translation), and Marketing bounties (External blog posts).

ICONOMI is a decentralized crypto-fund platform. It is geared to launch with 2 flagship funds – ICONOMI.INDEX and ICONOMI.PERFORMANCE. The former is similar to an index fund in cryptocurrencies, and the latter is similar to a hedge fund that trades cryptocurrencies. Investors in ICN profit from the asset management fees and performance fees charged by these two funds. The profits are distributed are planned to be distributed on a weekly basis in Ethereum to all the holding wallets (this is accomplished via a smart contract). Dividends will be in ETH.

Since the ICO raised over 10,000 BTC, the excess Bitcoin will be invested on behalf of the ICN tokenholders into the ICONOMI.PERFORMANCE fund. Therefore, that fund will start with an initial assets under management (AUM) of around 7,050 BTC. The ICO investors will be eligible to further invest in the ICONOMI.PERFORMANCE fund. Note that the ICN tokenholders are different from the investors, although there may be a considerable overlap, especially in the initial days after launch.

ICONOMI ICO is the second most successful ICO in 2016, trailing WAVES when measured in terms of number of Bitcoin raised. However, it is important to remember that a part of the ICO funds for ICONOMI are being diverted to the PERFORMANCE fund, which indirectly benefits the ICN holders, and therefore the amount raised in excess of 10,000 BTC is not purely dilutive to the ICO investors.

After the launch of these 2 flagship funds, ICONOMI roadmap has the creation of a fund management platform where other investors and traders can create their own crypto-funds and sell tokens to investors, with ICONOMI (and thus the ICN holders) getting a small cut of the assets. This platform is scheduled to be launched sometime in 2017.

Leave a Reply

Your email address will not be published. Required fields are marked *