Crypto Leaf (CLF) ICO Review – ICO Token News
Crowdfunding a Better environment
Traditional Crowdfunding and its issues
Crowdfunding is a method of building capital for a concept or business by collecting many small contributions, mostly via an online sourcing platform. This form of alternative financing has become very popular with online platforms such as Kickstarter and Indiegogo. In 2015 a whopping US$ 34 billion was raised by crowdfunding (Statista, 2018). Kickstarter alone has launched almost 400,000 projects in total as of this year (Kickstarter, 2018).
However, there are some risks tied to this form of financing an enterprise. The use of smart contracts and programmable tokens can limit these risks somewhat.
One of the largest issues with crowdfunding is the public fear of abuse and distrust. The world of crowdfunding, sadly enough, is filled with bad campaigns in which investors are overpromised and receive undelivered results (if delivered at all). This makes people doubt and distrust even very beneficial projects. Now, what if we could take away this doubt?
The use of cryptocurrency and blockchain provides a variety of security protocols that help minimize potential risk. The open form of a ledger records transactions between the parties in a permanent way and that data cannot be erased or altered without the approval of the network majority. This protocol would make it quite difficult for fraudulent organization to haul in an easy payday and disappear into the sunset because it records every event or transaction into an encrypted block. Sooner or later these frauds get caught, and rightly so.
New form of crowdfunding – Meet ICOs
An initial coin offering is a more modern version of crowdfunding via cryptocurrency. With crowdfunding campaigns, raised money is basically a donation. However, with ICOs investors are motivated by a prospective ROI. Due to the high volatility and passive profits that cryptocurrency offers many fin-tech investors are thinking about how to save their funds or actively manage money using cryptocurrency. Early investors in token offerings buy tokens in the hope that the platform becomes widely successful after their launch and they can use their tokens. At a later point in time investors might also sell their tokens at a higher price. However, the downside to an ICO lies within their volatility and risk. Most tokens do not serve additional functions other than fundraising. In addition, most token projects fail since the business model lacks proper token and blockchain integration. Understandably, this leads to a lot of frustration for investors and the community.
There is a better way
However, some tokens have been designed with a proper usage and potential in mind. Take green initiatives or ecological projects. Environmental issues are one of the most pressing matters in the world at this moment. Technological advancement help resolves these issues. For example, 17 % of the world’s CO2 emissions by 2020 will be produced by the largest transportation industry in the world, Shipping. Governments are trying to resolve these problems by regulating everything and pushing proposals to reduce CO2 emission. But every other year these quotas are not met, and a new proposal is made, this is not the solution, projects with innovating ideas could be. But most of these advancements happen behind closed doors and a lot of projects are funded on a global or governmental level. This is where a crowdfunding platform based on cryptocurrency could be the solution.
As explained earlier traditional crowdfunding has several flaws that can be alleviated with the use of blockchain and smart contracts. A lot of green projects are supported with crowdfunding, but these offer no mutual economic benefits, whereas a coin offering can. You can make a profit with offered revenue sharing, while helping to save the planet. You can do well (financially) and do good (for society). That is CryptoLeaf.
CryptoLeaf is Europe’s first eco-cryptocurrency. It is an initiative with support of partnerships, private investors and experts. CryptoLeaf was founded in 2017 after years of experience in management and investment promotion. They want to help SMEs and entrepreneurs reach success and turn their visions into a reality by creating a new cryptocurrency. Providing everyone on the planet with an opportunity to support these people and fund environmental projects all around the world is their mission.
“Where Environment and digital finance meet”
Trying to combine the benefits of traditional financing and cryptocurrencies. They decided to create Leaf tokens (CLF) as means to that end. The token creates liquidity and allows people to participate and even benefit from existing, approved and listed ecological projects. Their initiative is to guarantee security, due diligence and to democratize wealth.
Step 1 Due diligence
The first step is to make sure that projects that require funding undergo extensive background checks and a due diligence process, conducted by independent experts on the team in their respective areas of expertise. This assessment is based on multiple criteria: – Impact on the environment – Financial feasibility – Team composition.
After the first step is completed every accepted project will be voted on by the community. The community decides which project is opened up for funding first. Voting is done using the CLF token.
Step 2 Listing
After the initial assessment and community voting, the project is listed. From now on a token holder can fund any project they like and can even support multiple projects at the same time.
When it comes to funding projects, platform users pay a small transaction fee of up to 2.5%, paid in ETH when supporting a project. Platform users can choose to pay a much lower fee of just 0.1%, paid in CLF instead. This is done in order to incentivize the use of CLF tokens.
All project information and a final advisory report will be provided with full transparency to ensure platform users can make informed decisions.
Step 3 Milestone based funding
Reducing risk. An ICO as stated before can be a risky investment because once a token sale is completed by reaching its soft cap, funded companies usually receive all these funds at once. This increases the possible risk of a project running off with the collected funds never to be heard of again. CryptoLeaf ensures that contributors fund listed projects on a milestone achievement basis to prevent this exact thing from happening. Concretely this entails that projects must give information about their plans and the timeframe in which they want to complete these plans.
When the project reaches their first milestone they will receive a first stage of funding. Every contributor is contacted when a funded project reaches a milestone and they can choose to invest in the next stage or stop contributing. In the latter case all remaining funds are returned. This system gives contributors a way of voting together. If the majority wants to continue funding the next stage will be made available. Whenever contributors decide to withdraw their support and the funds are returned, users do not benefit from revenue sharing.
Step 4 Revenue sharing and terms and conditions
The next step is a big one, revenue sharing. Every listed company must agree to share a portion of their revenue with the projects’ contributors. The reason for this is simple: Startup companies have a low net profit because they tend to reinvest a large portion of their profits into the project itself. They deduct this reinvestment as an expense hence the low net profit. Each project agrees on a set percentage of revenue they will share with CryptoLeaf contributors. This information will all be included in the terms and conditions.
Step 5 Token payout
The revenue share is paid out over time in ETH, this is the last step. Contributors receive 80% of the payout, CryptoLeaf receives 20%. All the individual terms and conditions are provided on the platform for full transparency. And important thing to note is that the token payout is always pegged to current token prices.
Leaf (CLF) is an ERC-20-standard-based Ethereum token.
Token Cap: 80 000 000 LEAFs
Made available to the public: 50 000 000 LEAFs
Token Price: 1ETH = 2000 LEAFs (up to 60% discount 1 ETH = 3200 CLF)
For more information please visit: www.cryptoleaf.io
Everyone can contribute and profit from a greener tomorrow. Crowdfunding is a fantastic initiative to give smaller enterprises the option to get funded without having to go through several rounds of meetings with VCs. Listing company projects on a platform with an innovative and secure structure, guaranteed by the usage of blockchain and smart contracts, that could shape a greener world and economy.
Imagine if even only a small portion of the US$ 34 billion was conveyed into funding like this. People didn’t stand to make (any) profit on crowdfunding and supported it anyway. Because they believe in it. Here, they support CryptoLeaf while at the same time they receive economic benefits. This is a new opportunity no one should miss out on.
- JON GRUDAFounder, Chief Strategist
- ARNAUD FERONCo-Founder, COO
- DENNIS VANGENECHTENDigital Marketing
- MIIKKA SALOSEUTUAdvisor
- SAMUEL JJ GOSLINGSolidity Developer
- STEPHEN TRAYNORLegal Expert
- THOMAS DIERCKXCo-Founder, Blockchain
- UTA GRUDAPartner, Projects
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