I am Tim M. Zagar, co-founder of ICONOMI fund management platform. This is our first recurring AMA!
I am co-founder and CEO of ICONOMI, the first fund management platform for the decentralised economy. Promising the uberisation of fund management, ICONOMI is developing new financial instruments, that will bridge the gap between the old and new economies.
We will answer any relevant question, but please be familiar with our existing communications: two whitepapers published on https://ico.iconomi.net, all blog posts here: https://medium.com/iconominet, and our FAQ at https://ico.iconomi.net/faq
You can start asking question - me and the team will start answering them at 4pm CET / 3pm UTC.
Edit: The AMA is now finished. Thank you for participating.
1) Assets will be kept by ICONOMI.
2) You will be able to enter and exit investment fund positions from/to cryptocurrencies. But there will not be an exchange functionality with live trading books available as a stand alone product.
3) No. Assets will be managed by the ICONOMI platform. This includes entering, exiting and keeping the assets safe.
4) Yes, there will be several anti-fraud measures enforced. For example, the most obvious one will be the prevention of fund managers pumping certain tokens using fund’s assets, while at the same time dumping his/her personal assets on an exchange. It will be a continuous learning process. We’ll begin with a small control group and gradually expand in accordance with the feedback received. Security measures will be the same for all the assets on ICONOMI.
5) Fund managers will be able to customize their entrance, exit, management and performance fees within a valid fee range set by ICONOMI. If a manager will disable the performance fee, the fund will become a coin traded fund (CTF), with a possibility to be traded outside of the ICONOMI platform.
7) Yes - each fund on the ICONOMI platform will have its own presentation page.
8) Investments into the funds on the ICONOMI open fund management platform will be possible with cryptocurrency. However, there will be a simple ramp up process for FIAT investors which will involve the exchange of FIAT currencies into cryptocurrencies.
How and when will it become possible to invest in the Iconomi.INDEX & Iconomi.PERFORMANCE funds?
It will be possible to invest once the funds are launched. ICONOMI.index will open by the end of this year. New investment batch for the ICONOMI.performance fund is planned to open in Q1 2017.
Swiss government just announced they want to push Fintech companies and make it easy for them to get their business regulated. Swiss government wants to have all regulated soon. Kind of Banking licences will be issued with much less hurdles. Wouldn't it make sense to have an office in Zug, Switzerland? It will be the place to be for Fintech companies. And will give you more confidence for future investors with a address in Zug, Switerzland
We are looking into different options, and Switzerland is one of them.
Can I transfer ICN's bought on Kraken back to the ico.iconomi.net site to get Dividends?
Dividends will be issued to the token holding addresses. Exchanges will then decide if they will redistribute the tokens to their holders. It is the decision of exchanges to implement this feature.
Didn't really answers my question. I bought ICN's on Kraken. Don't have Etherwallet or other wallet. Can I transfer them back to the Iconomi site, where my ICN bought during ICO are?
Currently not. We will add this feature with the launch of our funds.
Can ICNX & ICNP be listed on NASDAQ or NYSE exchanges? How soon before we see them listed there?
Your guess is as good as ours :)
Can you explain in a short paragraph and as if you were talking to a child, how ICN token holder will earn dividend? How often payout will be? Are there any higher risk and lower risk investment opportunities available to ICN token holders?
Thank you in advanced for the AMA.
Sure - here is the ELI5 version: ICONOMI provides services to the users of the platform. They can create and manage funds that other investors can join. It generates revenue from those services by charging a fee. This revenue minus the operating cost represents profit. Periodically, this profit will be divided among all ICONOMI shareholders based on the number of ICN tokens they hold.
1) Is it planned to invest into already established projects via ICNP or only take part into ICOs?
2) Is it planned to invest into ICN via ICNP? Since we are all conviced that ICN will be a success this sounds at least like a logical step.
3) Do you plan to make the thought process behind the investments done via ICNP public?
4) How are the people selected who are allowed to join ICNP and invest directly into it? ICO participants are getting an invite but since the ICNP is capped propably not all can participate.
1) ICNP will invest in new projects only.
2) The ICONOMI.PERFORMANCE fund will not invest into ICN. We will stay transparent.
3) Over time we will share some of the tools and processes we have developed to evaluate blockchain based investment opportunities. Our exact investments will not be public, but we will publish a progress report periodically. You can read about our current progress here: https://medium.com/iconominet/ico-2-0-what-is-the-ideal-ico-ee9d285a8939#.fnz2mm9ex
4) The ICONOMI.PERFORMANCE fund has just started to operate. The only investor at the moment is ICONOMI, and the only way to currently “invest” into the ICONOMI.PERFORMANCE fund is indirectly, by owning ICN tokens. We are not accepting additional investments into the ICONOMI.PERFORMANCE fund at the moment. When the funding starts, ICO participants will be invited first (via email and other communication channels). If the capitalization limit will not be reached within a few days, we will open the ICONOMI.PERFORMANCE fund to the public.
Would ICNX and ICNP be another smart contacts on Ethereum?
Would there be the feature of auto reinvest? Eth dividends reinvested to buy more icn or icnp or ICNX.
Would profit (obtained by management fees)be divided into 87 m or 100m ICNs?
What would the minimum number of ICN required to receive dividends?
Can Icn come in ICNX after two months?
Are you planning to partner with Wings?
1) ICNX is a coin traded fund (CTF) and all CTFs will be released as an ERC-20 token on Ethereum. ICNP will be tradable on the ICONOMI platform alone.
2) This feature will be added in a subsequent update of the ICONOMI platform.
3) Profit will be divided equally among the 100M tokens that represent the complete ICONOMI equity.
4) The exact number of minimum ICN will vary with time. However, if you will keep your ICNs at an exchange that will support dividends or pool providers that will emerge, then any amount will do. Currently, this number will be fixed at 42 ICN. The cost of dividend distribution should be proportionally lower than the value of tokens one has.
5) ICN will not be included in ICNX. Obviously, that would be a conflict of interest.
6) This subject is covered by my recent post. https://medium.com/iconominet/iconomi-performance-fund-is-launched-with-the-first-investment-588ea41e95ab#.amg7xoz55 The same is valid for Wings: “The specific projects the fund invests in will be transparent but will be announced after the conclusion of each ICO to avoid any market speculations.”
Are there any parties outside of crypto that are interested in using the platform or have expressed interest? I feel a big part of being successful will be to bring outside money into Iconomi otherwise the success will be very limited.
We completely agree. Bringing fresh money into decentralized economy is a part of our mission. In fact, several of the investors in the ICONOMI ICO are new to the crypto world and we expect them and others to be active on the platform at its launch.
My question is regarding Performance Fund. I know Iconomi recently invested in Golem and more will come in the future. I was wondering how this will be managed in terms of adding or removing projects from the funds in order to invest in other ICOs or take profits.
When and how will Iconomi take profits and sell its position? (either parcially or totally)
In our recent blog posts (https://medium.com/iconominet/iconomi-performance-fund-is-launched-with-the-first-investment-588ea41e95ab#.unu3q0287) we have described the results of 2 months of ICO evaluations. Right now there are 3-4 projects that could meet our criteria. For now they are as follows: the project itself, the business plan, the team behind the project and their milestones. Projects should be interesting long-term. These projects are predominantly in the infrastructure space (such as Golem), but we’re also seeing some projects like ICONOMI, with planned revenue streams and possible dividends.
We don’t have an answer regarding the selling positions at this point.
May you get any info about ICONOMI founders club debit card? When we will get our free card and how we can use it? Just standard use or some new features related to your platform?
Debit cards will be available after the launch of the ICONOMI investment funds. More information will be published in 2017.
I'd like to help with marketing and brand awareness in the USA, will there be a way for me to do this?
I have an idea to create a fund that consists of highend fine artwork converted into digital assets (to prove ownership) via the blockchain using ascribe.io services. Would there be a way to include these assets in the iconomi fund platform? Meaning will the assets have to be connected to a specific cryptocurrency or will the iconomi fund platform be able to work with these individual hash identifiers utilizing the ascribe.io API?
1) We will announce our affiliate program in 2017. However, if you have any suggestions, we would be happy to hear them out.
2)The ICONOMI platform will support only a subset of tradable and liquid tokens. If ascribe.io will release tradable tokens then it will be eligible for acceptance.
Could we get some information about the NDA for the exchanges? What was the reason for this? Why was it decided to just list on Kraken as the main exchange from the start and not on other ones?
NDAs require from us not to comment on our relationships with the exchanges. The listing of ICN is purely the exchange’s decision. Kraken is one of the exchanges that decided to list us for the time being.
Whats the Iconomi adresses of the team members? and how long is it forbidden for you to sell the shares?
The addresses do not exist yet. Tokens are kept by ICONOMI. The rule we have in place is that the ICN tokens are vested over 2 years with a cliff of 6 months. This means no one receives anything for the first 6 months, while the rest is received in proportional monthly amounts over the next 18 months (24 months - 6 months). The addresses will be made public once they are created.
Question regarding referral program:
Have you yet decided on how referral/affiliate programs will work. Will it apply to both acquiring more customers to invest in funds and acquiring customers to OMF platform
Question regarding acting as Fund Manager on OMF platform:
How do I know if it’s legal to offer “crypto fund management” services in my country? I have a bunch of friends interested and wanting to invest in my funds, but I’d like to scale this up and offer my services to the masses. Will Iconomi/Cashila offer any legal counseling for this?
Question regarding the amount of Funds one can manage:
Is it going to be limited to one, or am I able to start up multiple funds for different risk types / portfolios etc.
We will announce our affiliate program in 2017, including all the pertinent details.
ICONOMI will continue to monitor the legal statuses in different jurisdictions and exclude some of them if so required.
You’ll be able to set up as many funds as you like for the exact reasons you have mentioned.
Could you give us the math behind the dividends ? or at least something estimated , If you make X profits , X dividends will be given per 1 ICN or something like that
As long as we operate from crowdfunded assets, all profit will be distributed to the shareholders. Dividends are distributed equally to all addresses which are above the threshold for the receipt of dividends.
My concern is how ICN index/performance/OFM will be regulated and viewed by the law. 1- Could you please clarify if you have any license or certifications that are required to be fund managers? 2- Could you please explain if there are any tax implication for dividends that is paid out to ICN token holders? I understand that we as individuals need to declare income in our countries etc... But does ICN itself pay any taxes before realised profits are paid as dividends to investors? 3- Are there any lawmakers or governments that could interfere with ICN's longterm goals? Could for example, securities and exchange commission (SEC in America) or similar authority intervene and make the use of ICN illegal in the relevant state/country? Do you see this is a threat?
Many thanks for your time and hard work!
1) At the moment, there is no licenses or certifications available for the management of cryptocurrency investment funds. However, as we are intensively researching the possibility of establishing an alternative investment fund in one of the EU countries, we are cooperating with an existing asset management company, which possesses appropriate prerequisites.
2) The tax implications vary by country. We strongly advise our users to check the local legal and tax regulations, as we do not provide financial or taxation advice.
3) One of the benefits of the decentralized economy is that no single region can stop the progress. We believe that soon, most if not all countries will adopt crypto-friendly legislation. With that said, we make sure that all operations of ICONOMI are done in accordance with the laws and regulations of jurisdictions where we operate.
1) What laws are most encumbering for Iconomi in terms of compliance in Slovenia?
2) What about in other countries, where fund managers may be operating, such as the US?
3) What are some strategies for how Ervin and the rest of the team are managing legal and compliance for Iconomi?
4) How will your legal and compliance resources be extended to fund managers?
1) ICONOMI is not based in Slovenia, therefore the Slovenian legislation does not apply.
2) ICONOMI will continue to monitor the legal statuses in different jurisdictions and exclude/adopt to some of them if so required.
3) There is a significant legal update being prepared. However, in short: - we have started cooperating with one specialised national law office; - we are on the verge of concluding a cooperation agreement with one proven international law office; - we are researching a large number of different jurisdictions; dealing with cryptocurrencies enables us to look basically at the whole world; - we have already established a Special Purpose Vehicle, ICONOMI Inc; - we are preparing, in cooperation with an US law firm, a legal opinion on the status of ICONOMI through the eyes of the US legislator (due to the fact questions of this nature were raised); - we are intensively researching the possibility of establishing a regulated, alternative investment fund in one of the EU countries.
4) Please see answer No 2 – the details are yet to be decided, but ICONOMI will always remain compliant with all pertinent legislation.
I know the whole thing about NDA but Is it safe to say that ICN should be available in new exchanges before the end of the year ?
We can’t say anything.
My 5 Questions: Thank you for providing excellent visions, 1.Are you planning to partner with other companies ? 2.How many kinds of funds are you planning to prepare ? 3. When will the Debitcard's service start ? 4. Is debit card service open to the all customer ? 5. ICN holder's will gain Debitcard transaction fee ? I look foward to serving iconomi's Value. Thanks！
1)We are willing to work with any company that shares the same vision and can benefit ICONOMI, our shareholders, or the decentralized economy. We are already working with a few trusted companies in the industry.
2)ICONOMI will launch two funds to showcase the platform. The ICONOMI.index fund will be a coin traded fund (CTF) following the ICNX. ICONOMI.performance fund will be coin managed fund (CMF), an actively managed fund that will invest in promising opportunities. Our customers will launch all other funds on the platform.
3)Debit cards will most likely be available in Q2 2017.
4)Yes, debit cards will be available to all ICONOMI users. The exclusive ICONOMI founders card (https://twitter.com/thaicrypto/status/781200775754108928) will be available to those who invested more than 5 BTC.
5)Transaction fees are charged by the card issuing company (like Visa).
If I purchase ICN on Kraken and keep the tokens there, will I receive dividends?
At the moment you have to control the private keys for the account that holds the ICN in order to be able to receive dividends. You do not control the private key if you hold your ICNs on an exchange, so you will not be able to receive the dividends directly for the time being. However, exchanges that hold ICN tokens will be in control of the dividends and will decide if they will redistribute them to token owners.
Can ICONOMI Open Fund Management platform grow as big as eToro or ZuluTrade?
It should be bigger! The potential is huge.
When can we purchase ICN with FIAT on ICONOMI platform? I'd like to purchase more ICN, but I don't want to deal with BTC or ETH on other exchanges.
This feature is scheduled for Q1 2017. ICN tokens can be bought on exchanges for now.
Iconomi.INDEX & Iconomi.PERFORMANCE, will they accept FIAT & all the crypto currencies that were accepted by Iconomi.ICO? What will be the procedure for accepting investments, similar to Iconomi.ICO experience and through account on www.iconomi.net? What about receiving profits and selling funds, what will be possible options?
Investments into the funds on the ICONOMI open fund management platform will be possible with cryptocurrency. However, there will be a simple ramp up process for FIAT investors which will involve the exchange of FIAT currencies into cryptocurrencies.
Iconomi itself has invested $ 5 million and another$ 5 millions get from other invited investors the performance fund.
If there is a profit of $10 million. $8 million goes to its investors and $2 million to ico investors. Out of that $ 8 million , Iconomi (as it has invested half the total capital, gets half of the profit which the investors get in total ) gets $ 4 million. We own profit Iconomi. So this $ 4 million belongs to ico investors.
So, In total we get $ 6 million (which is 60% of total profit).
Am I correct?
As long as ICONOMI operates from crowdfunded assets, all profit will be distributed to shareholders.
About OMF: Are ALL the crypto assets in the WORLD going to be possible to be added in to a managed fund, or just few selected by Iconomi team?
The ICONOMI platform will support only a subset of tradable tokens meeting minimum market capitalization and liquidity requirements.
I was wondering if you guys had attempted to get Iconomi added on larger exchanges...I know you might not be able to give us names because of NDA's but is it your intention to or have you already tried to get it added on more exchanges?
NDAs require from us not to comment on our relationships with the exchanges. The listing of ICN is purely the exchange’s decision. Kraken is one of the exchanges that decided to list us for the time being.
Will hacking accounts ever be an issue when ICONOMI is successful?
What are the major concerns/risks that you feel exist for this platform?
Will ICONOMI make money from the 3rd platform (OFM)?
Not a question, I just want to say you guys are amazing.
We are closely following the IT security standards and do our best to protect users from social hacking.
OFM is planned to be the the main revenue stream of ICONOMI.
Thank you very much :)
With the recent announcement of Gav, Parity, and Melonport's collaboration in asset management, how will this affect ICONOMI? Will there be a joint effort between all or is project melon considered a different kettle of fish?
It is an interesting concept and we will definitely monitor the development. Time will show if there is a possibilty of cooperation.
It seems that both the original ICO funds (ICN) and the first cryptocurrencies Index ICNX are extremely over-exposed to the lisk (LSK). Why did you take that decision? What is the logic behind it?
Methodology details for the ICNX can be found here: https://icnx.iconomi.net/
1) Will the assets in our open fund management portfolio be locked on ICONOMI? or will it be the open fund managers responsibility?
2) Will their be an internal exchange to trade the open fund management assets?
3) Do we need to have cryptoassets pre-purchased and added to our open fund?
4) Will their be anti-fraud security measures in place or is this trust dependant on who your open fund manager is ?
5) Will the open fund managers be able to customize their fee (profit % for running their fund)?
6) Will there be % details on gains and loses similar to ICNX/ICNP?
7) Will we have custom introduction/details on our funds ?
8 ) Will the investors of the open fund management need to pay in FIAT or is BTC/ETH and other currencies accepted for shares in the custom open funds?
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