A company was launching an ICO to raise funds to build a product that aimed to provide decentralized trading bots for cryptocurrencies. The product was intended to empower anyone to be able to trade, regardless of experience. The product allowed users to set up automated bots to trade cryptocurrencies in the background and use tokens to buy or rent features, strategies, and trading bots.
ICO Raise: $15 million USD
ICO Launch Date:
Total Token Supply:
Location: London, UK,
with the rest of the team international
In the constantly changing ICO space, the client needed partners who could assist with their unique technological and economic challenges.
When the client’s token sale did not execute as planned, they chose to halt the sale, communicate to their investors and community, and provide refunds for token purchases. They then chose to engage Totem to assess the ICO prior to their new token sale to set themselves up for long-term success.
The client contacted Totem, who determined that the most effective engagement would be to run due diligence on the ICO so they could move forward on the new token sale in a more informed manner.
The due diligence process involved a close analysis of every piece of collateral that the client had. During the engagement, Totem’s strategy team gave feedback on the overall ICO, including the advisors and team, company, and token economy. Totem ran the data through its unique diligence framework, and presented these findings to the client.
- Due Diligence
The client received feedback on their ICO that they said they had not heard from other consultants and advisors. Totem discovered assumptions in the token architecture that allowed the client to understand how they affected the outcome of the sale. For example, though the team had experience in their own industry, they incorrectly differentiated the nascent technology of dApps and smart contracts. Additionally, the token velocity—a complex economic concept that is based on varying factors such as trading volume, and is theoretical until the token sale begins—was incorrectly predicted, which caused the price of tokens to skyrocket during the