I Gave: An Ethereum Smart Contract Based Charity Platform

I Gave is a new DAO (Decentralised Autonomous Organisation) that is centered around allowing users to donate Ethereum to a charitable organization. Its current implementation is open source and was launched in January 2018 and is in the form of a private testnet. I Gave’s underlying technology is Ethereum smart contracts, much like cryptokittes.

The Idea behind I Gave

I Gave allows donors to donate to charitable organizations using ethereum in exchange for a nonfungible token. This token represents a “need” for the organization. Its whitepaper gives the example of “1 bottle of water” as a need represented by a token. A specific number of the non-fungible tokens are available when a fundraising campaign is started. And the fundraiser ends either when there are no more non-fungible tokens left or when the end date of the fundraiser passes. Either way, at the end of the fundraiser, there will be no further tokens of that type issued. The whitepaper also mentions a fungible token to be used for voting on specific issues, such as marking specific ethereum addresses as ‘Partners’. Partners do not pay the fees involved in starting a fundraising campaign.

ICO

I Gave will begin with an Initial Coin Offering intended to raise at least 100,000,000 IGV (100 ETH), and at maximum 50,000,000,000 IGV (500,000 ETH). 20% of the ICO will go into a development fund, with the rest going to those that purchased the IGV.  IGV owners will be able to withdraw their ETH if the ICO fails. The ICO has two failure conditions. The first failure condition is not reaching the 100,000,000 IGV goals within the timeframe of 12 months.  And the second is up to the founder of I Gave, who can end the ICO at any time.

 

I Gave is an extremely interesting idea and seems to have a well thought out plan for rollout and long-term use.  And if it succeeds,  could be a great asset to charitable organizations everywhere.

Featured image from I Gave’s GitHub

SophiaTX ICO Kicks Off Following CryptoKitties-Fueled Delay

cryptokitties

Business blockchain startup SophiaTX finally kicked off its initial coin offering (ICO) on Thursday.

SophiaTX had originally scheduled its ICO for Tuesday, but the project had to press pause on those plans due to extreme congestion in the Ethereum network. As been widely reported, the network has struggled to keep up with demand for what is currently its most popular application: a Neopets-style game called CryptoKitties that lets users breed — and sell — adorable cartoon cats.

cryptokitties
Source: CryptoKitties

And as adorable as these cats are, they have become big business. As of the time of writing, users had bought and sold more than $8.5 million worth of kittens, and four had sold for more than $100,000 each.

The CryptoKitties frenzy has turned into a serious headache for many ethereum users. Since CryptoKitties launched, the number of unconfirmed ethereum transactions has begun to pile up into a growing backlog, causing significant delays and a spike in the average transaction fee.

cryptokitties
Source: Etherscan

SophiaTX had not planned for this scenario — an incident no one could have foreseen even two weeks ago — so the company was forced to delay its ICO by 48 hours while it grappled with how best to handle the precarious situation.

SophiaTX CEO Jaroslav Kacina used the incident as an opportunity to demonstrate the perceived need for an enterprise-dedicated blockchain.

”The recent incident demonstrates why we have chosen to build SophiaTX as a proprietary blockchain technology. Businesses require sufficient speed, security, and features that are required for a mainstream adoption by businesses, currently not provided by either Bitcoin, Ethereum and others,” he wrote on the company’s blog.

Although CryptoKitties-related transactions continue to put a strain on the network, SophiaTX officially began its ICO on Friday morning. At the time of writing, the startup had raised approximately $5.7 million, which is 12 percent of its $49.4 million target.

US SEC freezes assets related to PlexCoin ICO “scam”

sec ico pr

Today, the US Securities and Exchange Commission issued a press release regarding the IPO of PlexCoin stating that it had obtained an emergency asset freeze with the intention of stopping the ICO (Initial Coin Offering, see below) ‘scam’ that had gained traction extremely quickly. PlexCoin, the currency in question had raised $15 million in a month from a large number of investors. The SEC filed a complaint in a New York federal court stating that Dominic Lacroix, their partner Sabrina Paradis-Royer, and PlexCorps had sold PlexCoin over the internet to a large number of investors, claiming that it would provide a 1354% profit in less than a month. All three have been charged with violating anti-fraud provisions, while Dominic Lacroix and PlexCorps have also been charged with violating the registration provision in US federal securities law. The SEC has stated it also wishes to file permanent injunctions and discouragement with interest against all three, and that it wishes to ban both Dominic and Sabrina from offering digital securities in the future, and Dominic from holding an officer or director position in a public company.

PlexCoin is the first ICO scam punished by SEC, but not the first ICO scam

These are the first charges filed by the SEC’s new cyber unit, and the chief of the unit, Robert Cohen stated: “This first Cyber Unit case hits all of the characteristics of a full-fledged cyber scam and is exactly the kind of misconduct the unit will be pursuing”. Other ICO scams in the past include Langpie.

What is an initial coin offering?

Initial Coin Offerings are cryptocurrencies where you can purchase some currency before the coin launches. It is typically used as a form of crowdfunding for cryptocurrencies to get off their feet, for example, ethereum used an ICO in 2014 before its launch in July 2015. ICOs are also used as a scam, as it does not require much other than a website and some false promises – So long as you can get exposure and you make the right promises, there is quite a bit of (illegal) profit to be made