ICONOMI, a fund management platform for blockchains and cryptocurrencies, has announced that approximately $5.8 million in equity and operational capital had been raised from more than 2,270 investors at an Initial Coin Offering (ICO).
Developed by Cashila, one of the first registered bitcoin companies in Europe, Ethereum-based ICONOMI is creating a disintermediated alternative to the dollar fund management industry, or as they refer to it, “uberizing Wall Street”.
Backers of the ICO will be issued ‘ICN’ tokens that function as equity shares in a new type of fund management platform specifically focused on blockchain. Thus investors will be able to participate in the rapidly growing cryptocurrency market by investing in actively or passively-managed funds. At its close, on September 29, ICO token holders will exercise 100% ownership of ICONOMI.
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The first funds are ICONOMI.INDEX, an index investment fund comprised of a basket of popular cryptocurrencies that minimizes volatility, and ICONOMI.PERFORMANCE, an actively managed fund targeting higher yields and run by credentialed, expert traders. Additional, custom funds created by prominent traders will be available in 2017. The ICONOMI Cryptocurrencies Index (ICNX) is now available for investor review, and both funds are expected to launch in Q4 2016.
How it works?
Unlike with traditional managed funds, ICONOMI explains that its investors will be able to easily withdraw or liquidate their holdings at any time, 24/7, through the sale of tokens on exchanges or through the use of a Visa debit card, which will be linked to account owner’s share of investment funds. It promises that all fiat funds are held at a regulated, insured, major bank and all cryptocurrencies are held by trusted escrow partners with multisig wallets.
Token owners will earn weekly profit dividends in the form of ETH as soon as funds are launched. Dividends will come from the trading fees of investment funds under the management of the platform and from the fees of listed investment funds of independent traders. Investors with fiat currencies purchasing tokens in the ICO are subject to EU-wide AML/KYC compliance standards requiring supplementary verification for additional tiers of investment.
Tim M. Zagar, co-founder and Director of Operations & Business, said: “ICONOMI’s success is proving that the idea of ‘uberization’ is best for far more than consumer-level services. There is tremendous demand for a platform like ICONOMI to cut out the middleman, lowering the barrier to entry for investment into cryptocurrencies.”
Jani Valjavec, co-founder and Director of Technology & Trading, added: “What we’re seeing is that crowdfunding will be considered an option for capital raise in all sectors, even in industries as sophisticated as financial technology. With this funding, ICONOMI will have the resources to begin the inevitable disruption of finance.”