Up until recently, crypto entrepreneurs seeking to launch ICOs often straddle two sides of a stark regulatory divide. On one side, there are countries like China which banned ICOs in early September, and on the other a relative wild west in which regulators have been silent on the legal status of cryptocurrencies. In recent years, major law firms like Cooley, Debevoise & Plimpton, Perkins Coie, and Steptoe & Johnson have launched specialized blockchain practices to help businesses navigate these uncertain waters. However, these firms generally operate using traditional processes and business models that may not suit the needs of crypto entrepreneurs. Patrick Salm, a former advisor for the TaaS token sale, founded SmartOne with the goal of offering regulatory compliance services to crypto entrepreneurs using smart contract technology.
At launch, SmartOne will function like an ICO platform. Member clients will have access to legal advice and a library of smart contracts for managing ICOs of ERC20 tokens. These smart contracts will define the structure of the ICO and the design parameters of the token itself. The first public test of these contracts will be the SmartOne ICO. The SmartOne sale will be structured as a capped sale with a parcel limit per participant. These limits will be enforced using an SMS-based KYC procedure automated using smart contracts. In the future, SmartOne will add smart contracts to support different sale structures and token designs.
At least initially, SmartOne will be competing with a sizeable library of open source ICO smart contracts, a collection of development outfits that produce custom token sale contracts, and other paid services like EtherParty. Many past ICO projects have their smart contract code available on Github. For example, the Firstblood crowdsale smart contract alone has been forked dozens of times. However, more than once, open source smart contracts have proven to have serious security problems. In July, a hacker exploited a bug in a widely used Parity multi-sig smart contract. They managed to steal 30 million USD worth of ETH. Several high profile ICO projects were affected, including Aeternity, which lost 18 million USD.
In the short term SmartOne will operate like a digital consulting firm, offering bespoke services to clients launching ICOs. Through early personal engagements with clients, SmartOne hopes to develop a set of automated compliance and legal services that they can offer using a SaaS model. SmartOne’s library of smart contracts is currently undergoing three parallel security audits. The results of these audits will be made public once they are completed. Smart One also plans on building a p2p marketplace for legal services. SKUANI, an existing consulting marketplace, will serve as the primary service provider for SmartOne’s p2p marketplace for legal services.
The SmartOne team’s consulting expertise is concentrated in financial analysis, risk management, and business law. Christian Klay, an attorney admitted by the Swiss Bar, acts as the team’s primary certified legal expert, although several teams members hold degrees or have experience in legal fields. Christian is the founder of LegalOne, a Swiss based digital law firm that specializes in offering automated legal services. LegalOne will be an early partner of the SmartOne platform and will provide the bulk of the legal services offered on the network.
What is the token being sold?
The LEGAL token is a tiered membership token. Users can access different levels of membership based on the amount of tokens they hold in their wallet. At the lowest level, members will be able to access SmartOne products and services for a discount. At higher levels, members have the right to free legal advice, discounts on future token sales carried out by SmartOne, and access to other premium services to be offered in the future.
Given that SmartOne is foregoing membership fees with this model, it will rely on three other primary revenue streams: fees for consulting services, payment processing fees for transactions on the consulting marketplace, and the increase in value of LEGAL tokens retained by SmartOne.
20 million tokens will be created in the token sale, 13 million of which will be distributed in the public token sale. The token contract is designed to automatically increase the total supply by 1% per annum to accommodate additional members as the platform grows. These tokens will awarded to users who contribute content to the SmartOne consulting marketplace.
Who is the team behind the project?
SmartOne was founded by four members with experience in the blockchain industry and wide range of professional consulting backgrounds including law, finance, and accounting.
- The foundation president is Prof. Thomas Fischer, a lawyer and board member of SKUANI, a consultancy marketplace.
- Patrick Salm is co-founder of Kepler Technologies, a cryptocurrency portfolio management technology firm.
- Klause D. Stark is a licensed Lichtenstein trustee and the co-founder of the lichtenstein blockchain meet-up.
- Reto Stiffler is a Swiss licensed financial analyst and asset manager. He is the editor of a website dedicated to reporting blockchain analysis.
|Incorporation status||SmartOne Foundation, Liechtenstein, 2017|
|Team openness||Fully transparent|
|Technical Lead||Marco Oesch|
|Technical White Paper||High level overview only|
|Available Project Code||Not available|
|Role of token||Membership Rights|
|Token supply||20 million|
|Distributed in ICO||13 million|
|Emission rate||1% per annum|
|Consensus method||Proof of Work|
|Sale period||October 30th, 2017 to November 15th, 2017|
|First price||0.004 ETH|
|Investment Round||First public offering|
|Token distribution date||Q4 2017|
|Min investment goal||None|
|Max investment cap||15 million USD|
|How are funds held||Third party Escrow|
|Minimal Viable Product||Q2 2018|
|Bonus schedule||10% bonus for whitelisted investors|