Fabian Vogelsteller, the developer of Ethereum, who co-authored the ERC-20 standard, offers a new model for ICO. During the annual Devkon Ethereum conference in Prague, Vogelsteller proposed a new system for launching ICOs, which, he said, would better protect investors.
Vogelsteller offers a concept of “reversible ICO” (RICO) as a fundraising model that allows investors to return their tokens at any stage of the project using a special smart contract.
According to the developer, such an approach will reduce the risks for investors to face a fraudulent ICO, and also make ICO issuers more responsible for fulfilling their obligations.
"You are able to take your funds back at any point in time and do it simply by sending your tokens back.”
According to the proposed system, when some investors return tokens, other investors can buy them. However, with this model funding will be less stable, but startups need more “core financing” from private investors outside of the public token sale, Vogelteller commented.
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