What Is ESC Lock?
Esc Lock is a financial model that seeks to reduce the risk of financial loss during Initial Coin Offerings by utilizing Escrow. The model is equipped with an investor protection device and combines the escrow system together with ICOs and thus creating a model that locks investments and cryptocurrency issued by the ICO Company.
Its services are available before and after ICOs. Some of the services that Esc Lock offers include:
- Improving the security for during coin swaps with other ICOs,
- Development of investor protection model through collaborating with FinTech companies,
- Stabilizing the price of cryptocurrency deposits after the ICO using the Escrow and
- Providing a stepping stone that corporates can use in order to crypto fund ICOs
How ESC Lock ICO Token Escrow Investing Service Works
The financial model will involve startups and ICO Corporation or foundation, the Esc Lock, the investor and the bank. Once the investors have deposited their investment into the escrow account, the ICO Company will have to satisfy all the conditions in order to receive their ETH payment. The ICO Company will also deposit the tokens in to the Esc Lock.
Esc Lock sets these conditions: when necessary, investors can add additional conditions in order to secure their investments more. The investors receive their token payment after the confirmation of the payment. If the company does not meet the conditions, the Esc Lock returns the investors ETH deposits and the tokens are disposed. This will eliminate the risks when the ICO Company meets conditions.
This model ensures that the investor’s investment is returned if the company does not meet the conditions therefore minimizing the investor loss. The financial model involves liquidation of ETH deposits immediately to cash by transferring the deposits to a bank in order to avoid to risk of ETH price fluctuations.
There are payment conditions that an ICO company must meet in order to receive the services of Esc Lock.
- The company should be listed on specified cryptocurrency exchange platforms 6 months after the ICO.
- Its token must have maintained over 50% of the token listing price on month after it was listed on the exchange platform.
- It should achieve over 50% of the required escrow amount through a standard ICO.
ESC Lock Benefits
The financial model provides benefits to both the investors and the company.
- It eliminates risks of investment payments when conditions are met and it ensures investments are returned when conditions are not met.
- The platform allows investors to make investments using cash
- It has numerous investment options to choose from which has interest rates higher than banks.
- Investors will always receive a return on the amount invested even when the ICO fails or there is price drop after the listing.
For ICO Companies
- The company could identify the reliability of an investor by implementing the use of the Escrow.
- The company will not have to undertake additional PR and marketing for the ICO funding.
- Through the financial model, the company will be able to attract corporate and fund capital.
- The company’s ICO will be easily distinguished from other ICO that do not use the financial model.
- The price is also stabilized through the distribution of the open cryptocurrency to the market after listing.