CoinMirror, a blockchain start-up based in berlin, Germany has announced that it will be launching its public beta platform that will allow established and armature Initial Coin Offering (ICO) investors an equal opportunity for investing in ICOs. The platform is to be based on the Ethereum Mainnet. This platform will give investment opportunities to potential investors regardless of their capital.
According to CoinMirror’s co-founder Sebastian Hoffmann, the new platform aims at democratizing the investment field by providing easy access and education. While speaking to Bitcoin Magazine, Hoffmann said that their platform seeks to break down the existing barriers in ICO investment and give power back to the people. He said that they were excited to launch the platform that will provide the solutions needed in this industry that will ultimately lead to a healthy evolution of the industry’s ecosystem.
While ICOs have significantly changed the manner in which start-ups and established firms raise capital around the world, they have also raised some problems for the average investor. Average investors are limited by issues such as minimum investment thresholds and lack of due diligence (DD) required for making informed decisions before committing funds to a particular ICO. Lack of start-up capital coupled with lack of investment know-how is a serious impediment to the armature investor. These impediments create inequality favoring only the established investors and those with enough investment capital to play around with. CoinMirror looks forward to breaking those barriers by creating a platform that will try and give equal opportunities to all.
So How Does CoinMirror Work?
CoinMirror as mentioned earlier is built on the Ethereum blockchain. There are two groups of users on this platform. These users are experienced investors otherwise called Syndicate Leaders on the platform and armature users or investors. The plan is to have the armature users mirror or copy the moves of Syndicate or experienced investors. Armature users do not have to carry out extensive DD or code reviews. They simply need to commit their funds to the platform which the system will commit based on the activities of the Syndicate Investors.
There are private and public Syndicate Leaders. Whenever either of these leaders commits a given percentage of funds in an ICO, the system automatically deploys the users funds in a similar manner. The user only needs to back or follow a Syndicate Leader of their choice and leave the rest to the system.
If you want to follow a public Syndicate leader, you simply browse through the system and select your preferred one. They are listed publicly on the system. On the other hand, you must have an exact URL to follow a private Syndicate’s page as they are not publicly listed.
CoinMirror considers this stem as a win-win for both Syndicates and the retail investors. According to Dan Desa, head of business development at CoinMirror, this system saves retail investors the hassle of carrying out extensive due diligence procedures and allows them to gain access to “high minimum investment thresholds.” Syndicate Leaders on the other hand, get access to a larger capital pool and are thus in a position to negotiate for better deals. They are also able to build reputable profiles as established financiers and earn a bonus of the “realized bonus tokens” in addition to their prescribed system fee.
It is not as easy to become a syndicate on the CoinMirror platform. Public Syndicates are required to go through KYC/AML check before approval. The system developers have to manually approve traders who want to get listed as public Syndicates. If you want to be a private Syndicate though, you just need to create a private Syndicate account.
CoinMirror platform is, however, still at its nursery stages and lacks some features such as the rating system for rating Syndicates with the best results. The company has promised to introduce this in the near future. While waiting for that particular feature, the platform will be using the “investments actions and returns brought back to users” to determine the position and the fate of the Syndicates.