A surge in scams:
The crypto community has recently seen an exponential increase in the number of projects which end up being a scam or a rugpull, stealing retail investors’ money. This increase in fraudulent projects has been favored by the surge of fast and low transaction fee blockchains such as the Binance Smart Chain and the massive increase in new users to the crypto community. CEO Dennis Schulte along with a team of visionaries saw an opportunity to help fund legitimate projects whilst protecting investors.
The Escrow Protocol was born with an idea in mind: an ICO & CROWD funding platform with a milestone-based payment release.
In other words, projects will only receive part of their money once they have met some key milestones for their project. These can be an MVP or mainnet release, amongst other goals, after which more money will be unlocked. In this way, investors’ money is protected as Escrow prevents teams from ‘running away with peoples’ money’.
Furthermore, whilst funds are held in Escrow waiting for payout, they are allocated to stablecoin Yield-Farming Protocols; maximizing ROI.
Differences from other IDO and ICO platforms:
Other IDO and ICO platforms such as Polkastarter release all funds collected to the projects’ team; creating the so-called ‘pumps and dumps’ and making investors vulnerable to fraudulent projects. Moreover, the Escrow token acts as a governance token; giving investors voting power in project-related decision making, whilst the community cannot decide on anything in traditional launchpads. Escrow is more than a launchpad, it’s a start-up accelerator in and outside the blockchain. We will have, for example, a private chat between startups, and projects will be able to receive advice from the bigger investors.