DropDeck aims to be AngelList for ICOs
So you’re scouring the latest ICO listing, looking for a project to back. Each company looks as good as the other one. Sure, there are ways to evaluate an ICO, but what’s to say that this good looking project isn’t going to bust. The opposite is also true. The ecosystem is crying out loud for a community driven rating system and that’s where DropDeck comes into picture.
Details from the Whitepaper
DropDeck is a funding platform that runs on the Ethereum blockchain because it requires this
blockchain’s features such as smart contracts, payment, consensus mechanism and its own
digital token named DDD (Decentralized DropDeck).
It aims to address all existing issues in cross-border business funding for startups and SMEs, by issuing digital tokens and deploying smart contracts to incentivize all token holders to collaborate with each other and complement the A.I. development. The outcomes are –
- fundraising companies are as accurately scored and ranked as possible so that funders can put their money to optimal use, and
- All participants in the ecosystem are financially incentivized to help funders get rewarded, so that
funders can keep funding and attract more funders to join the ecosystem.
How does DropDeck Work?
Companies from all geographies can submit information to the platform according to standardized funder-centric formats, or local agents called Hunters can help do so.
Funders screen fundraising companies based on scores, and can select local agents called Delegates in the geography of the interested company to assist in further due diligence. After conducting full due diligence, the funders are ready to make the loan. The Delegate is required to enter into a legal arrangement with the funded company in order to enforce the repayment.
Funders then make a payment in DDD to a smart contract. This smart contract involves the funders, the funded company, and the Delegate, so that the Delegate only gets paid if the funded company pays back. The Delegate receives either a percentage of the repayment amount, or a fixed amount held in escrow by the smart contract.
The loan can be paid back in the form of simple amortization with regular payments, or via royalties or with other amortization schedules for companies who are not generating consistent cash flow yet. The DropDeck reputation system encourages funded companies to pay back in order to attract further funding in the future, and encourages Delegates to protect the funders’ interests in order to attract more clients.
The DropDeck Token
The Decentralized DropDeck Token (DDD) will be issued and distributed to serve as the ultimate reward for all participants in the funding value chain (Delegates, Hunters, Evaluators, etc.). Since DDD’s value reflects the overall success of funders and fundraising companies on DropDeck, every participant must collaborate in the best interests of each othe r (e.g. evaluate companies accurately, enforce repayment) and of DropDeck (e.g. contribute data to make scoring algorithms smarter) in order to increase the value of their rewards.
The founders call DropDeck “a better Angelist – a one-stop shop that revolutionizes how you fund businesses worldwide.” They’re not too far off. There’s an obvious need for more investor protection in ICOs in general and this is a step in the right direction.
However, the success and failure of DropDeck depends on the strength of their community building prowess. As it stands, this looks like a good team and seems to be worth exploring.
Check out DropDeck – https://goo.gl/1C8bxf
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.