A former employee of the prominent encrypted messaging app. which is the Telegram, will give life to a new cryptocurrency trading platform.
Anton Rosenberg, the former director of special projects of Telegram, declared that the purpose of this new platform is to aid and promote companies who aim to start ICOs or Initial Coin Offerings.
“Mikado” will be the name of the app.
This app will be a crypto derivative app and will be a way to avert the problem of ICOs when price decline happens when an open sale starts and initial investors give up their tokens.
As disclosed by Rosenberg to CoinDesk, “many 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.”
In the commercial dealings involving ICO, there are no tools which will provide a system to regulate the slow release of the liquid tokens so as not to upset the market and create price volatility as compared to the conventional financial market, where market leaders aid business enterprises in their IPOs or Initial Public Offerings.
Mikado is said to be able to address this problem by breaking it down into two parts.
First, bonus tokens are given out to investors or when tokens are given out to the project’s employees in order to boost their commitment to the project.
Second, these token can be locked up and Mikado will give a derivative for such inaccessible tokens and will be able to move these tokens to an escrow account, and investors will be able to obtain derivative Mikado tokens (MKT) which can be acquired by other investors through a sale.
The MKT tokens will be burnt, and their holders will receive an amount equal to the original tokens they invested in after the duration of the lock-up period.
According to Rosenberg, locking up coins is convenient but not very efficient. Mikado will register with the Securities and Trademark Commission in the US after obtaining a ledger technology license.