“ICOs are scams, dead, worthless and will all go to zero” is just one of the very harsh yet extremely common remarks when hearing those 3 letters: I-C-O.
To be fair, the more traditional Venture Capital method of funding could also be questioned.
Would you rather have a handful of people own your company, make your decisions, or walk away with most of your money without even having to work at the firm? Or would you prefer to be a part of a community of contributors whose views and contributions are sought and rewarded?
The ICO (initial coin offering), which is essentially the crowdfunding of a project, was born as a response to the philosophy of decentralized movements on the blockchain. The main tenet of blockchain’s philosophy is to shift power from central authorities back to the community by making possible peer to peer transactions that are secure, safe and fast. The ICO, by enabling many to contribute directly to a project that they find compelling, is a great way to raise funds from people who share a vision. ICOs are the most inclusive form of funding in the history of finance, challenging the exclusive nature of venture capitalists. With the ICO anyone with a computer or mobile phone can contribute from anywhere. In this way, the ICO mirrors the crypto sphere’s very raison d’être: removing central authority.
The most important question is: are ICO’s the right fit for the crypto space or should we shift back to VC fundraising?
By pursuing the path of the DAO (Decentralized Autonomous Organization), we are breaking the status quo and the elitist nature of venture capitalism. The blockchain technology and cryptocurrencies have the potential to correct the unfairness and rebalance the inequality existing in traditional finance.
At SwissBorg we are proud and grateful that we are not backed by a handful of wealthy venture capitalists but by nearly twenty-five thousand individual contributors from the four corners of the globe who each bought our CHSB tokens.
The community is part of our DNA, what makes us who we are, what motivates us every single day to push our agenda forward. We are proud to be community-driven. Our referendums on the blockchain and our DAO platform give our community a chance to participate in our progress and contribute to our team.
All the value created within SwissBorg ecosystem is designed to be 100% reinvested in the ecosystem itself that is to say we are a team, a community and with a token: the CHSB on the ethereum blockchain. We are adamant about giving 0 value to shareholders and putting all efforts into breaking the traditional mold coming from the exclusive world of venture capitalism.
VC-backing is not a negative phenomenon. It is a time-tested model of funding new companies and projects. According to some estimates less than 1% of companies that seek funding from a VC fund end up getting an investment, so it’s a huge accomplishment if a company can make it happen.
Both methods of fundraising can work. However, we want to align ourselves with the philosophy of inclusion that the ICO both enables and represents. We now have the technology that allows us to be inclusive, to give ordinary individuals control of their wealth allowing them to contribute and be rewarded for their contributions.
We want to innovate from a product point of view but also from a "business model" perspective. Will you trust a company to offer access to a new investment world if this company can't change its own methods? We don’t believe that existing corporate models must be eliminated but that the time for a new kind of venture has come, something in between an LLC and a non-profit organization. The shift from company-building to community-building is what makes the ICO model uniquely disruptive to the traditional world of finance. We believe in a fundraising model that is based on inclusion and participation that doesn’t just fund a company or a project but brings together a community working around a common goal.
It’s time for the financial world to reinvent itself and embrace community-centric values. Join the movement and become part of the SwissBorg community today!