- Minimization of investment risks by holding investments in
escrow and making deposits when required conditions are met
SEOUL, South Korea,
April 26, 2018 /PRNewswire/ -- A
patented financial model has been launched to allow for investments
into ICOs (Initial Coin Offering) without worrying about scams.
On the 23rd, the Korea M&A Center announced the
launch of the 'ESC LOCK' (www.esc-lock.com) service, an ICO
investment model equipped with an investor protection device. ESC
LOCK combines the escrow system used in financial markets such as
e-commerce, together with ICOs, to create a model that 'locks' the
investments of investors and the cryptocurrency issued by ICO
companies.
Recently in Vietnam, the
largest ICO scam in history was recorded as some 32,000 investors
lost a total of over $660 million USD
for the Modern Tech exit scam. In related news, three of the
co-founders of the Centra ICO, a well-known project with celebrity
backing, have been charged with fraud. According to market research
organization Token Data, among the 902 ICOs conducted last year,
276 or over 30%, failed to reach commercialization after achieving
their investment goals. ESC LOCK was created to address these
issues in the ICO market where investors lack protection.
ESC LOCK only deposits the investment to the ICO company if
certain required conditions are met. If these conditions are not
met in full, the investment is returned to the investor, minimizing
investor loss. Conditions for deposit of the investment to the ICO
company are 1. being listed on an exchange 6 months after the
ICO, 2. maintaining a fixed price 1 month after
listing, 3. and achieving over 50% of the escrow amount
through a standard ICO. The exchanges where the listings are
recognized are limited to the top 30 Korean and foreign exchanges
established by the ESC LOCK review committee. In addition to the
basic conditions listed above, investors can set further options
such as development and business progress to further secure their
investments.
As Ethereum (ETH) is predominantly used for ICO investments, the
Korea M&A Center will immediately convert the invested ETH into
cash and deposit it into a bank escrow account to eliminate the
risks and damages of price fluctuation. This structure allows
investors to receive a return on the amount of ETH invested even if
the ICO fails or the price drops after listing.
In addition, the opportunity to participate in ESC LOCK is only
granted to select ICO companies that have completed a strict
pre-verification process by the ESC LOCK review committee, so
investors are provided with a safe investment opportunity and do
not have to worry about choosing a proper ICO to invest in.
From the perspective of ICO companies, ESC LOCK has a
number of benefits. First, with the secure investor protection
devices in place, it is easier to raise investment funds because
investors can rely on the ICO company. In addition, it is also
possible to stabilize prices by distributing the amount of
cryptocurrency open to the market after being listed, and to
immediately raise additional funds when successful development or
business is completed.
The structural stability of ESC LOCK makes it highly attractive
to companies and funds that have previously been hesitant about
participating in the ICO market. The investment base is expected to
expand to the general public, those with no ICO investment
experience, by providing a foundation for the entire market where
scam companies cannot enter.
ESC LOCK is not only able to fundamentally prevent scam ICOs
that have been spreading recently, but is also structured so that
the immediately escrowed full investment amounts are refunded if a
problem occurs.
The Korean M&A center will hold a public briefing session on
May 10th at the Dongjak
Art Hall near Seoul Station in Seoul,
Korea to officially launch ESC LOCK as the world's first ICO
scam prevention model both domestically and globally. At this
public briefing session, which will be held with the
"29th Win-Win Matching Conference", the first ICO
companies to adopt the ESC LOCK service will also present their
business models to the audience.
Sean Ryu, the CEO of the Korea
M&A Center stated, "As many investors, both domestically and
globally, have become victims of failed ICOs, unrealistic White
Papers, and ICO scams, the need for a service that provides
advantages to ICO companies while also protecting investors has
never been more important. ESC LOCK is a patented financial model
(Application No. 10 -2018-0045475) that does this. In the recently
subdued ICO market, ESC LOCK will become a major power in the
further development of the blockchain ecosystem and a safe ICO
investment culture.
<Korea M&A Center>
The Korea M&A Center is a specialized M&A and investment
platform dedicated to create a sound M&A ecosystem and virtuous
investment structure. The Korea M&A Center has introduced
'Win-Win Crowd Funding', a protection system for start-up investors
that is a financial patent model integrating investment and
M&A. Since 2015 has held over 30 Win-Win Matching Conferences
and IR seminars. Although it has succeeded in Win-Win Crowdfunding,
the Korea M&AS Center has also created a stir among
crowdfunding investors by returning the investment capital and
interest of a recently closed startup to investors on behalf of the
start-up.
Photo -
https://mma.prnewswire.com/media/682668/ESC_LOCK_Structure.jpg