UAICO is suitable for fundraising for business models with profit models.
Harbor team, a group of South Korean developers working on creating a decentralized software market platform, proposed a new ICO model–Underlying Asset Initial Coin Offering.
The UAICO model primarily works by storing all the invested funds in smart contracts to create the value of underlying assets of the newly issued cryptocurrency. This allows investors to withdraw the newly issued cryptocurrency at any time to refund a fixed portion of their initial investment, thereby maintaining the minimum value of the new cryptocurrency.
Throughout history, real assets have often been utilized as a way to maintain the stability of a value of a currency. A classic example would be the gold standard where it was used not only as a currency but also as an underlying asset.
Vast majority of currencies prior to the First World War was based on the gold standard, resolving various issues that occur during foreign exchange rates and international trading. After the Second World War and under the Bretton Woods Agreement, the U.S. Dollar was pegged to the price of gold in an attempt to stabilize the global economy. Although the era of the gold standard soon ended in August 15, 1971, due to the overvaluation of the U.S. Dollar, the underlying asset of currency has shown to play a huge role in providing great economic stability.
Bitcoin, the world’s first cryptocurrency, was created by Satoshi Nakamoto a few decades later in an attempt to remove any possible corruption in issuing or exchanging currencies by central banks after he witnessed the 2008 financial crisis.
Cryptocurrency was rather an unsettled concept of a digital log in its very early stages. However, with its limited issuance and decentralized system enabling minimal resources as the underlying asset, cryptocurrencies with innovative technical values, like Bitcoin and Ethereum, have attracted many optimists around the world.
UAICO sets invested cryptocurrency as the underlying asset of a newly issued cryptocurrency. This concept has existed throughout the course of history, but it is the first time it was used as a new ICO model.
Mr. Kim from Harbor Team discussed about their newly proposed UAICO.
“With the ICO market overheated, the startup spirit has evaporated and has been replaced by pure avarice. Nowadays, people are simply launching far-fetched ICOs with the desire to raise millions of dollars. There also have been many cases of ICO scams and frauds in the market.
However, people are still investing in ICOs with such high fundraising goals. This is not because the project actually requires so much funding but due to the fact that it is important to have as much funding as possible in order for the new cryptocurrency to maintain stable value and economy.
With UAICO, we aim to fix all the invested funds in smart contracts in order to maintain the underlying asset value of the newly issued cryptocurrency. We also focus on improving our model by using the capital profit to protect our investors and the value of the currency as well as incentives for further technical improvement.”
UAICO is one of the many models to improve existing ICO models like DAICO.
With the ICO boom causing much concern in the cryptocurrency market, Harbor Team hopes that UAICO, along with many innovative models in the near future, can minimize investor risks and maintain economic stability.
If you have any opinions or ideas about UAICO, please share with us.
For more information, please refer to the link below.
Project Site: https://www.toharbor.com
Online meetup: https://meetup.toharbor.com