Description of the Bitbon System
In this article, you will find a detailed description of the Bitbon System that opens new opportunities for startup financing. Despite the fact that ICOs allowed many venture projects to attract investments from a wide range of investors with minimum requirements, there is still a number of challenging issues in this field.
The absence of ICO regulation allows fraudsters to pass their schemes as reliable projects and scam money out of overly trusting users. After a number of such incidents, the community became suspicious towards ICO startups. On one hand, caution is a good thing, but on the other, constant suspicions harm the reputation of the entire crypto industry and reduce the volume of investments into truly promising projects.
The Bitbon System offers a solution to this problem for both startups and investors.
What Is The Bitbon System and What Are Its Benefits?
The Bitbon System is a special marketplace, where promising projects can receive financing from investors. The process of attracting investments is called IBO and here, unlike with ICOs, investors become the owners of a certain share in the business, instead of abstract tokens that can turn out to be just a platform internal currency and give absolutely no benefits to the holders.
A separate smart contract containing all the terms and conditions of cooperation is drawn up for each project. These smart contracts are verified by a special certified body that also examines all startups before offering them to investors.
How Does the Bitbon System Work?
In typical ICOs, the interaction occurs only between the project team and the users (investors). In the IBO, the interaction model has been improved and includes three participating sides.
The offer in the Bitbon System is created by a Contractat (it can be either a founder or an authorized representative of the project). Before attracting investments, the Contractat presents his/her offer to the certified body (Bitup-Agency). The Bitup-Agency examines the Contractat’s offer and business plan, as well as conducts a general evaluation of the project. If the project passes the examination, the Bitup-Agency helps to draw up a smart contract based on the basic offer and the business plan that will become a public agreement between the Contractat and the Contributor.
Contributor is a participant of the Bitbon System, who invests in startups through the IBO. When investing, the Contributor gets the right to a share of profits in the Contractat’s business, and the Bitup-Agency ensures the fulfillment of obligations on both sides.
Summary: the Bitbon System is not just a marketplace for IBO startups, it is an integral infrastructure project whose possibilities go far beyond the limits of the usual financial relations.