Blockchain Companies - How to launch an ICO? - Meetup by Evoluchain - June 2017

@evoluchain@jeromeroussin @fabienchampigny
Special ICO Meetup
« Blockchain & Business Models » Meetup
by Evoluchain
Paris, June 22nd 2017

Who am I?
2
•Jérôme Roussin, 38
•CEO and co-founder at Evoluchain
•Startup investor and advisor
•TEDx speaker
•Teaches Information Sciences to Paris Sorbonne

[Business] ICO 2017
[Business] Paradigm change: the token model
[Business] Best practices to launch an ICO
[Business] ICOs as an investor
[Tech] ICOs and Smart Contracts
Starts 7:15
7:45
Meetup Plan
3
[Legal] What about regulation?
[Q&A] Let’s talk aout the future!
8:00

-1-
Business Part
4

What is an ICO?
5
• Known as : Initial Coin Offering, Token Sale, Crowdsale
•Like Kickstarter and cryptos having a child!
•Selling one’s company own cryptocurrency
•Company gets the capital to fund the product development
•Audience members get their crypto tokens shares
•Complete ownership of these shares
courtesy of CoinTelegraph

Paradigm change :
the token model
6
• Tokens have to offer a REAL added-value : the network
•They are used in the app itself
•Contributors get paid directly in tokens
•Tokens can be converted to fiat money
•They can generate value in both ways (ie. STORJ)
•Goal : building the Network Effect

The New Network Effect
7
•It is the core of decentralized business models
•Users own a part of the network and can run it
•Way better for incentivize a community
•International reach
Businesses that are based
on network effects
will start to be built
“decentralized first”.
courtesy of medium.com

8
Amounts raised
This graph doesn’t include:
•BANCOR, $150M in 3 hours
•STATUS, $100M
•CIVIC, $33M
courtesy of CoinDesk

9
Token Distribution and Usage
•Important points : % of company tokens, Vesting and cliff
Civic example Aragon example Aragon example

Path To Success
10
courtesy of William Mougayar

Best Practices
11
•Publish a detailed white paper
•Provide a detailed development roadmap
•Allocate funding for each stage of development
•Use an open, public blockchain and publish all code
•Use well-known token contracts (ie. ERC20)
•Use clear, logical and fair pricing in the token sale (capped)
•Determine the percentage of tokens set aside for the development team
•Avoid marketing the token as an investment
•Promote the token based on its functionality and the use case for the network

ICOs as an investor
12
•Now mainly done with 2 cryptos : BTC and ETH
•Never let your cryptos stored on exchanges
•Own a hardware wallet (like Ledger Wallet) or a paper wallet
•Search for pre-ICO analysis (ie. on Smith+Crown)
•Know more about the team, white paper, roadmap, goals of the project, team identities
•If team is anonymous, code is not auditable, no clear goals or not enough transparency:
RUN!

ICO Shit Happens.
13
•Smart Contracts can contain mistakes
•Some bugs could really turn an ICO into a nightmare
•Not to mention scams, but it’s a different problem.
1)
2)

How does Evoluchain address this?
14
•Smart Contracts Management Platform
•Massive Management of thousands of SCs
•Modular SC architecture over Ethereum
•On-the-fly Smart Contract updates
•Dependencies injection
•Tokenization services

-2-
Tech Part
15

ICO Smart Contract example
16
•Send Ether to buy Tokens
•Manage startup sale
•Manage the Token transfer to buyer

Token Smart Contract example
17
•ERC20 Token
•You have to know the Smart Contract Address

Where to check the tech part?
18
‣ etherscan.io

Example with Bancor
19
▸ ICO Contract  
https://etherscan.io/address/0xbbc79794599b19274850492394004087cbf89710#code
▸ Token Contract 
https://etherscan.io/address/0x5894110995b8c8401bd38262ba0c8ee41d4e4658#code

-3-
Legal Part
20

IPO, VC & ICO
21
VC Funding
IPO – Initial Public Offerring
ICO – Initial Coin Offerring
IPCO – Initial Public Coin Offerring
Shares - Issued Unit
Crypto Token – created and shared
Right Token or Usage Token
$, € Payment ETH, BTC, …
Long – 3-9 months
Complex
Process Quick – 2-4 months
Bank – 7% Intermediate and Fees Few %
Very regulated
Long audit process
Documentation pre-funding
Open – Typically a Website, a detailed
white paper, Slack, Twitter, Github, specs
…
Very regulated
Participants rights and documentation
post funding
Totally Open
Shares: dividends, equity, Rewards expected
Right to use ? Software License ?
Contract ?
Clear & documented
Business Model
Target market
Products/Service offerring
Often unclear

Legal Context
22
Participant
Issuer
BTC
ETH
…
Smart
Contract
Coins
Tokens

Coin Offer Parameters
23
Parameters
Date Open
Date Closed
Minimum Objective (ETH)
Maximum amount (ETH)
Minimum/Maximum Number of Token supplied and Issued
Conversion rate ETH/Token. If Applicable, assumption on the BTC/ETH
Phases of Token issued
Pre-ICO date
Pre-ICO Conditions
Reimbursement Policy if not released
Token Allocation
Token Usage/Ultimate Goal
Token Usage Transparency, Communication
Offer Timing Bonus
Team Incentization

Useful Ressources
24
▸ CryptoCompare - Lots of crypto info + advanced portfolio features 
https://www.cryptocompare.com/
▸ CoinDesk - crypto market and ICO informations 
https://www.coindesk.com/
▸ Smith+Crown - curated list and analysis of ongoing and upcoming cryptocurrency ICOs 
https://www.smithandcrown.com/
▸ William Mougayar analysis and « Business Blockchain » book 
http://www.coindesk.com/author/william-mougayar/
▸ CoinMarketCap - All cryptos and assets market caps at once 
https://coinmarketcap.com/

Thanks! 25
Let’s keep talking!
Twitter :
@evoluchain
@jeromeroussin
@fabienchampigny
Mail :
hello (at) evoluchain.com
Evoluchain platform :
https://evoluchain.com

Blockchain Companies - How to launch an ICO? - Meetup by Evoluchain - June 2017

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