With the meteoric rise of ICO markets in 2017, it’s inevitable that many if not most were set up to fail, either because they were scams or because of poor planning on the part of their founders. ICOs raised funds anyway, and many investors were left holding worthless tokens.
This high rate of failure (about half of ICOs launched in 2017 have failed) is a major problem in the space. Enter Vertex, with a first-of-its-kind solution: a vetted ICO token aftermarket.
The Vertex aftermarket relies on a six-step vetting mechanism designed to filter the existing ICOs. The vetting process is conducted by prominent investors and businesspeople who carefully evaluate ICO projects and select a few promising projects. Once the vetting process is complete, the surviving ICOs move through the Vertex ecosystem. Here, the ICOs find:
- A user pool that has in turn gone through a KYC process, who can buy their tokens and fund their projects
- Early-stage investment from Vertex. Vertex buys vetted tokens and sells them to its user base at a preferential rate.
- The peace of mind given to investors that the ICO has been thoroughly vetted by industry leaders
At the center of the Vertex ecosystem are its users, who enjoy many benefits from investing in a vetted ICO token aftermarket. Benefits to users include:
- Only the strongest projects make it through the vetting process
- Scams and weak projects are filtered out
- Preferential prices
- Option to buy into projects that are currently being sold only to private investors
- Fair chance to buy any token Vertex offers on its aftermarket platform
Users make token purchases using the VTEX token. ICOs that Vertex buys into, will need to take VTEX tokens, meaning that VTEX underpins the system and connects ICOs and users directly.
Vertex plans to introduce more services where ICOs and users can utilize via VTEX tokens.
This is a comprehensive solution for a volatile and uncertain ICO market. The main benefits are that ICOs receive an influx of funds and investors can breathe easier knowing the ICO has been vetted.
Ultimately, the ICO market will benefit the most through higher standards, which will help investors choose the strongest and most viable projects, and lift the market above its currently dismal failure rate.