Dear colleagues, investors, crypto-enthusiasts and everyone who has been supporting and will support our project, dear friends!
We have not collected the necessary amount of funds for the project development.
As you remember we launched our project in the middle of 2017, when we clearly realized that the cryptocurrency became an integral part of our reality. Opportunities associated with distributed registries, the potential of smart contracts impressed our imagination. This idea has shown the prospect of a world with a new exclusively revolutionary approach to real deals financing, which we now call people’s or global factoring!
We made a decision to test attitude, the community would have towards our idea, and performed a pre-ICO.
The experiment had a very positive response: we were receiving enthusiastic letters, the community supported our idea, valued it as a “brilliant” one.
And very much due to that response we decided to go for the ICO and afford to launch crowdfunding.
After the pre-ICO we updated and modernized the design of the project and the site, refined the concept, performed a great amount of work with developers and the promotion team. But in this sphere also, not all tasks were completed quite smoothly; for example, our institutional investors were criticizing our bounty and bonus programs and regarded them as a barrier to investments in our project.
Thus, despite the fact that our idea was highly valued by investors and its potential was considered to be global, venture capital investors required us to reorganize the project and we decided to suspend it for the reorganization of our performance.
Together with VC and our new advisors we analyzed our actions and understood what should be improved:
1. First of all, our communication with institutional investors requires a sound amendment. We were too relied on the attractiveness of the idea and crowdfunding and practically were not communicating with the VCs. After the pre-ICO we expected the 10,665.761 ETH, exhibited as the soft-cap, easily to be collected, and the 54,818.534 ETH, the hard-cap, confidently reached. Yes, now we are completely aware and can recommend to everyone who would go for an ICO to start the whole process from communication with investors to come to agreement to reach with them 20-50% of the hard-cap and at least the soft-cap and only after that to run the ICO.
2. The second most important for us lesson was the understanding that we should have gone for the ICO with the only unique coin. The two coins, we offered, only confused our investor. We considered having two coins to be an advantage and thus ignored a simple rule: let it be as simple as possible
3. Besides, there should be an extreme precision in placing the emphasis in the description of our system. The complexity of explanation could have given an incorrect idea about the system functioning, making it interesting almost exclusively for the institutional investors, but not for the general public. The way we gave the explanations could also limit community’s perception of the of system growth potential, preventing from getting a complete picture of its advantages, benefits and revolutionary perspectives.
4. The Bounty Program also requires a radically different attitude. We considered that provision of the broad support paid for by our tokens would increase the reach of the target audience. In reality, it turned out that there were “professionals” that supported a lot of worthless accounts in social networks, which didn’t provide any return, and so, the fact that we were going to give away some coins free of charge, prevented serious investors to invest in our project. The same happened with discounts for the early purchase of coins. That didn’t attract the general public and deterred professional investors. Now we understand very well that the capital raising market, even if you use such a tool like the ICO, works differently and there are other rules to follow there.
5. We should also more clearly work out our policy of interaction with controlling authorities and KYC/AM processes.
6. We have already been developing a product that is the basis of our system. We can recommend any company that would seek funding, and/or would go for an ICO, to develop the product before the prototype or MVP.
The mentioned above factors already indicate that radical changes should be made in our work on the system and in providing funding for this work. To stop holding ICO in this situation will be a correct decision. And it will be stopped on March 31, 2018
Of course, all investors will have their invested funds paid back. It will be carried out from April 03, 2018. All repayments will be completed by April 10, 2018. As the repayments have been made the tokens will be burnt.
We have started already and within the coming two months we will be redesigning the concept. Our next actions will be as follows:
1. Perform all necessary amendments in accordance with the described above/. Including also a clearer description of the concept, a reorganization of the system technical description – leaving only one utility-coin instead of two; continue dialogues and reach consensus with the main investors before the beginning of the main ICO round.
2. Develop and implement a really working product before the beginning of meetings with investors. Our work on this point will be soon completed.
3. Decide whether to register a DLT company or to transfer the activity to Gibraltar or to Wyoming and whether we should register with the SEC. Perform all activities from the crypto-friendly zones.
4. Strengthen the team: attract more professionals in the issues of distributed registries, and smart contracts. We will pay special attention to marketing and promotion. We will work more professionally with investors and crypto-community.
5. Create a new brand to give investors a more accurate idea of the system and its possibilities.
6. Create a completely new Whitepaper and more carefully, actively and closely – better than in the previous project, – work with the community to show all the benefits and importance of our idea for us all.
7. Our work with the expert advisors has become more detailed and clear. We will go on working very closely with them and with the venture investors, which supported us, – to achieve exceptionally high outcomes.
So, we have been refining the concept and creating a new brand. And we will launch the updated project to the market within the next four months. After that, we are starting the road show, which will last for another three months.
We have already discussed both – the depth of the required corrections and the planned actions – with some of the potential key investors. They have confirmed their admiration for the idea, willingness to support the idea financially and that they have been waiting for our updated offer.
That is why our team has been working with an increased enthusiasm and the firm belief that we will launch our platform and make a revolution by offering the community a new, genuinely popular and truly global factoring.