Ex-Telegram Employee to Make Presence Felt in Crypto Arena
A former employee of Telegram is moving to establish its reputation in the cryptocurrency arena by launching its own cryptocurrency trading platform.
Anton Rosenberg, Telegram’s former director of special projects, unveiled its own cryptocurrency derivatives trading platform called Mikado which aims to support blockchain startups stabilize their token prices.
Rosenberg said his team will provide a solution for entities planning to hold its initial coin offering (ICO) but which intend to avert the price downfall that happens when the ICO commences and early investors ditch their tokens.
“[T]he main goal to bring more transparency to investors about the project and to fight the market inefficiencies caused by big bonuses, high discounts, and ICO flippers,” chief executive Andrey Nayman in his Medium post.
“[M]any companies who are doing ICOs are trying to get investors’ attention by big bonuses and discounts without an understanding how it will affect the price after the ICO,” he said.
Nayman pointed out the challenges in launching an ICO such as preparing a whitepaper, considering all legal aspects, choosign the right jurisdiction, developing blockchain components, forming a community, planning a fundraising strategy, and setting out a PR roadmap.
“However, rarely discussed, is the extremely critical part of every ICO — post-ICO trading and token-price stability,” Nayman added.
Under this arrangement, the crypto platform is issuing a derivative for any locked up tokens including bonus tokens for the first few investors or tokens disbursed among the project staff to bolster their respective work.
The project can transfer the Mikado tokens (MKT) to a specially created escrow account. Investors will then receive their digital tokens which they can sell at any time.
Once the lock-up period ends, the firm will burn these digital tokens and investors will receive their fair share based on the amount of money invested.
“Locking up coins is a convenient tool, but not very efficient. They can plan several lock-up periods, gradually release their tokens and control the trading volume. Mikado is promising a tool to create a “stable commodity-based economy” on the crypto market, he added.
Mikado has no plans to roll out its ICO for its own tokens to halt financial authorities from classifying the MKT as a security, Nayman said.
Rosenberg explained that ICO markets, unlike conventional financial markets in which underwriters and market makers are helping firms to mount its initial public offerings (IPOs), have no institutions and guidelines to plan the incremental release of liquid tokens.
Currently, the project lodged an application to secure a license for its distributed ledger technology (DLT) in Gibraltar. The firm also plans to be registered with the US Securities and Trademark Commission.
Moving forward, the company intends to establish a post-ICO trading management standard to work out through ICO-related issues.