ICO Investors Can Recover Money From Bankrupt Projects

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Startup investment is always a risk, and when it comes to ICO projects, 95% of them go bust.

Risks push investors away, and with them, the very idea of making new projects. In 2021 a program for token sale investors called Global ICO Insurance System (GIIS) was launched.

GIIS is built upon the LH Crypto platform, which is both a cryptocurrency and a forex broker. The tokens that the compensation program currently works with are CNK, REcoin, LUST, and EBZ, with new additions to the list.

Who can get their money back?

The goal of the Global ICO Insurance System is to bring back the appetite for investing in cryptoprojects. The program covers investors whose assets have dropped in price dramatically. The project has a thorough selection process:

  • Investors must pass KYC (know your customer). Investors from the US are not eligible to enter GIIS;
  • Investments must have been no less than 250 euro;
  • Projects must have a market capitalization of no less than 1 million euro;
  • Projects tokens must be present on at least one exchange;
  • Projects must pass the committee’s selection.

If investors believe all of the criteria are fulfilled, they can submit an application to join the project, it’s totally free.

How much money can you recover?

The reimbursement is calculated as per the following formula:

(IP-CP)*T, where:

IP – is the initial price of the token at the time of the ICO.

CP – current price of the token.

T – tokens currently held by the investor.

The formula is not the whole story, however, GIIS offers two ways to reimburse your funds:

  • Base. This is the standard mechanism used by default. The token holder gets the full price according to the formula above. The tokens stay with its holder, and the full amount is reimbursed within one month.
  • Eco. In this case tokens are sent to GIIS, and in return, the token holder gets more money, paid out within one year.

The Eco mechanism is activated for all token holders if the total sum of applications for the project surpasses 1 million euro. You can manually switch from Base to Eco one month after passing the KYC procedure.

The Global ICO Insurance System project was created to attract new investors to the cryptomarket as well as revivify old and new projects alike. Increased attention to newly insured tokens will boost their sales, and, naturally, drive the price up. This helps cryptocurrency market participants of all kinds to regain trust in the crypto field and come back to building and investing in new projects.

Via: 2Coinfox.info

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