Presenting tokengate

Initial coin offerings (ICO) have created a totally new paradigm of thinking about startup funding by allowing thousands of entrepreneurs around the world easy access a new unregulated source of funding. Before fundraising was a slow process and was not always mutually beneficial to founders: most VC and fintech investors requiring more than 51% equity stake. ICO investors are buying tokens, which are, in most cases, a means of payment or a right to access functionalities on a blockchain platform.

In 2017 the total amount of funds raised via ICOs was approaching US$4 billion, twice the volume of venture capital (VC) investments in blockchain projects. In the first three months of 2018, with US$6.3 billion the level of funding has reached a new high. Up to now more than 3,219 ICOs from 348 countries have been organized worldwide.

It is estimated that more than 10% of ICO proceeds are stolen by hackers 2 through phishing.

Know your customer (KYC) is the process of a business identifying and verifying the identity of its clients and improper implementation has lead to many ICOs being closed by authorities suspecting money laundering schemes.

Regulators were totally ignoring ICOs in the past years, but are now recognizing this new way of funding. They are either banning them (China, South Korea, …)  or regulating them using existing or new laws. Known for its centuries-old tradition of economic and political stability, Switzerland is one of the few country which actively support ICOs and Blockchain projects. The Swiss regulator Finma published guidelines that address the regulatory treatment of ICO structures, anti-money laundering regulation and securities.

ICOs have never been as attractive to Hackers as they are now, due to the large amounts of money being raised, the relative pseudo anonymity and the irreversibility of transactions. Most projects owners are underestimating security and leaving large attach surfaces open to hackers: unsecure hosting, issues in smart contracts, phishing in multiple social channels, etcl. Not only precious proceeds are lost but also the project reputation and or team suffer from not having taken the right decisions earlier.

TokenGate.io is an initiative of Inacta AG to address the above issues and provide an easy to use platform for founders and startups that want to meet all security and regulatory requirements. All the hurdles and complexities of meeting legal compliance regulations from Finma and the anti money laundering law have to be taken into account from the beginning to smoothen the investors/users experience.

By using a Bank to hold on proceeds during the crowdsale and continuous review process before the token generation event (TGE) TokenGate.io avoid typical security issues affecting competing platforms. Funds are safely held with Bank Frick, the first financial institution in Liechtenstein to offer the trading of five leading cryptocurrencies (Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP) and Ether (ETH)) and offering secure safekeeping via offline storage.

At Bank Frick, cryptocurrencies are held in “cold storage wallets”. Cold storage wallets are physically separated from the Internet and they therefore cannot be externally hacked. The wallets and their backup copies are held securely on a geo-redundant basis.

TokenGate.io aims to be the reference platform for launching ICOs in Switzerland supporting the growing ecosystem (400+ startups and counting) of the Crypto Valley. By using a standardized investment process and promoting transparency for both investors and organizers.

Inacta AG is an independent, Swiss IT consulting firm, located in Zug and employs more than 40 experienced digital consulting experts supporting a wide range of organizations from the insurance, banking and healthcare industries. inacta is participating in the Crypto Valley Association as a founding member and is an active contributor to the continued economic prominence of Switzerland.

Contact us at [email protected] for a quote or visit us at www.tokengate.io

Sources:

1 https://icobench.com/stats

2 10% of $3.7 Billion in ICO Funds Lost or Stolen: Ernst & Young Report