The aim of the GIIS program is to compensate the buyers of unprofitable initiatives for the funds spent.
The ICO increase that befell on the crypto market in 2017-2019 is remembered by many. At the moment, an enormous variety of token gross sales have been held, which ultimately grew to become unprofitable for the buyers. Many promising initiatives on the token sale stage aren’t creating in the present day, others are creating too slowly. Based on statistics from 2021, 95% of 2017-2019 ICO tokens misplaced 80-98% in worth in comparison with the preliminary mark. Buyers dream of returning not less than a part of the funds invested in initiatives and … such a possibility simply appeared.
Simply the opposite day, the Global ICO Insurance System (GIIS) compensation program was launched based mostly on the multi-financial dealer LH Crypto. The aim of this system is to compensate the buyers of unprofitable initiatives for the funds spent. Compensation is just not attainable for all initiatives, however just for people who meet the sure standards. There are additionally standards for this system individuals themselves.
For individuals who meet the GIIS standards, it calculates the compensation worth for every token and affords two choices to comply with:
- Base. The compensation is the same as 100% of the calculated one. Reimbursement interval – as much as 1 month. The switch of tokens to the dealer is just not required.
- Eco. The compensation will be over 100%. The time period is 12 months. A switch of tokens to the dealer is required.
Each choices require passing a KYC course of with LH Crypto.
The primary requirement that GIIS makes to the issuer and the token holder is that neither of the 2 must be underneath the jurisdiction of the US. A coin holder wishing to obtain compensation must affirm their place of residence in the course of the KYC. One additionally has to substantiate that he/she has invested not less than 250 euros within the mission.
The mission should additionally affirm that on the time of the completion of the ICO, its capitalization was not less than 1,000,000 euros. As well as, the token have to be listed on not less than one crypto trade. The factoring division of LH Crypto conducts its personal experience for every issuer and decides on the compensation for holders of sure tokens.
In the meanwhile, GIIS is working with a number of initiatives: for tokens
For REcoin, LUST and CNK the compensation quantities have already been decided, the EBZ token is into consideration.
Participation in this system is free and each the coin holders and the mission house owners can apply. For the latter, it’s a good likelihood to cut back their reputational losses, in addition to to assist their mission regardless of the preliminary difficulties.
GIIS is this system that the holders of “junk” cash have been ready for a very long time. The evolving DeFi market in the present day affords dozens of various danger insurance coverage instruments that weren’t obtainable just a few years in the past. The power to offset prices give new life to once-promising initiatives with good concepts, and helps token holders and coin creators can breathe new life into the already forgotten ICO market in the present day. On the identical time, solely these whose initiatives are actually fascinating and worthy might be compensated for the price of cash. And as a way to calculate the quantity of potential compensation within the factoring division of LH Crypto, they developed a system that takes under consideration each the present trade worth of the asset and its value on the time of the general public sale.
The quantity of reimbursement to the holder is calculated in accordance with the system: (IP-CP) * T, the place IP is the ICO token value, CP is the present trade worth of the asset, T is the variety of tokens held by the holder.
- For instance, on the time of the ICO, the token price 0.10 EUR.
- Now its worth on an trade is 0.05 EUR.
- The token holder possesses 1000 of those tokens.
- The renumeration might be (0.10-0.05) * 1000 = 50 EUR, which on this case is 50% of the funds initially spent.
Nevertheless, GIIS offers customers with the chance to get extra – that is exactly why two applications are being carried out: Base and Eco.
By default, the essential program of GIIS Base is utilized to every consumer. It implies a 100% assure of refunds instantly after identification of the token holder, which takes a few month.
Nevertheless, if there are lots of purposes from customers for a particular mission (in complete for one million euros or extra), then the GIIS Eco program is initiated – it implies the switch and freezing of consumer’s tokens for 12 months, however because of this, the compensation acquired will be considerably greater than with the essential program. This is because of the truth that a full-fledged ecosystem for this explicit token is created in GIIS Eco, together with the itemizing, implementation of fee devices and different time-consuming processes.
The token holder independently chooses underneath which program he/she needs to obtain the compensation; this alternative have to be made inside a month after identification. Massive buyers (with a deposit of 1000 EUR) may obtain particular person recommendation from GIIS specialists.
LH Crypto’s International ICO Insurance coverage System is a recent and promising resolution that may cut back dangers for each token issuers and their buyers. Two compensation applications permit one to decide on between the pace of acquiring the “insurance coverage” and the quantity of revenue made. As for the benefits for the initiatives themselves, such a system will present vital help in preserving the status and implementing plans for additional growth. The WIN-WIN-WIN precept offers a win-win scenario for all three events – the issuer, the token holder and the insurer.
Having obtained a diploma in Intercultural Communication, Julia continued her research taking a Grasp’s diploma in Economics and Administration. Changing into captured by progressive applied sciences, Julia turned captivated with exploring rising techs believing of their potential to rework all spheres of our life.