Blockchain Startup Launches Platform for Risk-Managed ICO Investments
CoinMirror, a Berlin-based startup, is launching the public beta of its platform for ICO investments on the Ethereum mainnet today, July 18, 2018. The platform seeks to provide investment opportunities to investors regardless of available capital.
Speaking with Bitcoin Magazine, CoinMirror co-founder Sebastian Hoffmann stated, “We came up with CoinMirror to democratize investing by providing access and education. We want to break down investment barriers and give power back to the people. We are excited to launch our solution and contribute to the decentralized community, and ultimately help to accelerate the healthy evolution of the ecosystem.”
ICOs have revolutionized the fundraising process globally, but it has also created a range of problems for the average investor. From minimum investment thresholds to the absence of due diligence (DD) needed to make sound investment decisions, the barrier to responsible entry can be substantial for those without much start-up capital or investment know-how. The experienced investor has often had the upper hand here, but CoinMirror might make it possible for the average investor to play catch up soon.
Built on Ethereum, the CoinMirror platform allows its users to "mirror the moves of experienced" investors (Syndicate Leaders) without the "need to perform extensive DD or code reviews." The platform wants its users to identify and copy the moves of ICO investors with a proven track record.
So, when a Syndicate Leader — either Private or Public Syndicate — invests a certain percentage of their funds in an ICO, the users' funds backing them will be deployed in like manner. Once the user backs the Syndicate Leader, the platform automates the rest.
Public Syndicates are publicly listed on the platform for users to browse and back them up with funds. Private Syndicates, on the other hand, are not listed publicly. Users need the exact URL to access the Syndicate's page on the platform.
CoinMirror believes that their platform is a win-win for both retail investors and Syndicates. Dan Desa, head of business development at CoinMirror, said the platform offers retail users the opportunity to avoid "extensive due diligence procedures" while accessing deals with "high minimum investment thresholds." Syndicate Leaders, on the other hand, will be able to "negotiate better deals" with a larger capital pool, build their profiles as "savvy ICO financiers" and earn a portion of the “realized bonus tokens” in addition to the standard Syndicate fee.
Becoming a Syndicate on the platform might not be as easy as it sounds. The company’s FAQ page states that “any individual or organization” can create a Private Syndicate, but Public Syndicates have to undergo a KYC/AML check before being manually approved to join the platform.
For now at least, the platform does lack some essential features. Notably missing is a rating system for profiling highly rated Syndicates — which the company says it intends to include in the future. For the time being, it plans to use the "investment actions and returns brought back to users" to determine the fate of Syndicates on its platform.