The project is creating a decentralized platform for secure and legally valid investments.
The blockchain technology is touted as the next great thing after the Internet that will disrupt and change virtually all areas of our life. Blockchain projects pop up by the dozen every single day, and the total value of the market is expected to exceed 2 trillion dollars by 2021. However, the vast majority of existing projects operate outside the legal framework, which makes them potentially vulnerable to a regulatory crackdown. Both token holders and ICO organizers are deprived of legal protection as their rights and liabilities are not covered by current legislation.
Simcord LLC. Technologies has come up with the solution by creating the Bitbon System, an investment platform where each digital contract has legal value. It uses technologies of blockchain and smart contracts to register property rights and transfer them in a digital form directly between the parties, thus by-passing intermediaries and bureaucracy. The Bitbon System is a working product, which can be used by private companies, state authorities and individuals alike as all instruments available within the platform are legal and compliant with the regulatory requirements in effect.
Simcord operates in compliance with the international standards of research and development in the field of development and production of high-load blockchain-based software solutions and is certified under ISO 9001:2015.
About the Bitbon System
As an innovative decentralized platform for smart investments with a multi-level verification process, the Bitbon System offers a comprehensive solution to existing legal and practical barriers to fundraising. The whole system is based on a fundamentally new investment and asset management concept called Contributing. This framework creates and registers legal relations of the parties in Bitbon Public Contracts, which contain all relevant information about the financed business projects, including the raised amount, project milestones, terms and conditions of profit allocation and other applicable rules and specifications.
How It Works
Basically, if a company or an individual needs money to take a project to the next level, they can use Bitbon to launch Initial Business Offering. It is fundamentally different from any other existing form of crowdfunding as it implies operation within a legal framework, full-scope verification and step-funding process to reduce risks of default.
The company creates a Bitbon Public Contract describing the fundraising terms and conditions, including project goals and funds distribution rules. Each Bitbon Public Contract is digitalized with the technologies developed by Simcord сompany and recorded in the blockchain in the form of a smart contract. This solution makes the agreement between businesses and investors immutable and excludes the human factor from the process.
The Bitup-Agency audits the project, evaluates the viability of the business plan and provides legal support for the project at all stages. Once the project is verified, the newly created contract is published on the Bitbon Space website. At this point, it is visible to all System Participants, and they may become Contributors of a specific project by investing their Bitbons.
Each Contributor receives a Projectbon, which defines their share in the project. It’s like a traditional security paper: the holder can sell it, transfer to another person or claim dividends.
Thus, the Bitbon System offers double protection for the participants as the contractual information is stored in immutable smart contracts, while all legal issues can be settled in accordance with the existing regulations.
Bitbon System Crowdsale Details
The Company has already reached its soft cap and closed a very successful pre-sale round after raising over $50 million. The public crowdsale phase that started on June 17 will last until October 10, or until the hard cap in the amount of $400 million is reached, whichever comes first. According to the Bitbon System White Paper, the cost of Bitbon is calculated using a specific formula depending on how many Bitbons have already been bought. Currently, one Bitbon can be purchased for $6. The total supply of Bitbons is limited to $70 million with over $13 million already sold.