The Winding Tree ICO public sale opens on February 1st, allowing cryptocurrency investors to contribute to the project’s goal of creating a “a blockchain-based decentralized open-source travel distribution platform.” Below are 8 questions for the Winding ICO team, originally shared by Blockchain News contributor Kourosh Shafi on his Medium blog.
(Update: Winding Tree responded to these questions on Twitter.)
I have spent a while understanding the goals and mission of Winding Tree (https://blog.windingtree.com), but after reading the whitepaper and the medium posts, here is a list of questions that I would like to be addressed by the team:
- It seems the auditing firm of the smart contract is also in the advisory board (and thus, the IDEAL full independence of auditing is in question). I believe this is conflict of interest in case adverse issues unfold; will you have another auditing firm check the code?
- Given that the crowdsale is uncapped (and uses Market Validation Mechanism smart contract), I believe there is valuation uncertainty as opposed to your claim. Valuation uncertainty is before and during the fundraising and will be resolved after fundraising is over. Is that correct?
- Given the many conditions involved, is it possible to mention that how the funds will be distributed for any given amount of funds raised? I see an example of $100M posted in a blog; Can you clarify what happens in other condition statements? Especially include vesting outcomes.
- It is also unclear how you plan to burn the tokens over time?
- if after fundraising I realize that I am not happy for any reason, what is the percentage that I will lose if I return my LIF token to recieve my ETH (I wonder what the risk premium for not knowing the exact price ex ante is). When participants return LIF, will you burn all returned LIFs or you reserve them (lock for many months or some other purpose) or resell them at the market price?
- Will the graph on this page that shows buyback program (https://blog.windingtree.com/market-validation-mechanism-in-a-nutshell-ddba1d92be89) continue to be valid when and if ETH price drops?
- Would there be a danger (of centralization and voting control) that Winding Tree owns all LIF tokens if ETH price goes up against LIF? Would you walk us through all scenarios involving price decrease or increase of ETH?
- It seems the smart contract code is not updated for the past few months (if I am looking into the right repo), does this mean smart contract is production ready and the team is working on demo for the website?
I may be wrong in any of the above statements and thus, please correct me. I am just trying to figure out this project.
Additionally, from my understanding the best strategy to invest (in the sense of Vitalik Buterin’s post about uncertainty reduction you have posted), the last minute of fundraising gives me the most confidence of what the likely valuation will be (and thus, a logical investor would go for last minute investing). Is that right?
Kourosh is a post-doc fellow at the University of Florida Center of Entrepreneurship and Innovation. View his site at http://www.kshafi.com/
ATTENTION: Winding Tree has responded here – https://twitter.com/kouroshshafi/status/954366916872822785
DISCLAIMER: The content above does not constitute financial advice. The author, nor Blockchain News make any guarantees for the related financial assets, and recommending seeking professional services for specific investing advice.