The crypto economy, which is primarily centred around Initial Coin Offerings (ICO), is booming with a plethora of crypto ventures springing up. Despite this explosive growth, the increasing number of ICO scams has made it a concern.

A study based upon publicly available data found that 81% of ICOs were scams in the second quarter 2018. Only 10% of those ICOs made it to trading.

According to the study, a total of 92% of ICOs fell onto the “failure list.” Further, 6% of the total ICOs fell into the “failed category,” and 5% had “Gone Dead.”

Additional information reveals that at least 750 ICOs were invested into in the year prior to the report.

According to reports, the top ten largest ICO frauds have swindled victims of $687.4million.

Although there is no way to know how much was defrauded via ICO launch activities, it seems that most people are still susceptible to cybercrime.

To address this issue, Defense Launch, dubbed the “world’s first 100% scam-free ICO launch platform” is forging a path to rebuild the trust in the global crypto market.

In an exclusive interview with DailyCoin, Rodrigo Lyra, CEO at Defense Launch, shared briefly about the startup’s mission to sweep the crypto market clean of ICO scams. Defense Launch launched operations in the first quarter 2020. While it’s still in a crucial stage, the startup aims to establish a defense economy that is unique for the crypo industry.

Lyra says that many people like him get tired of being scammed. He and his team came up with ways to end the recurring ICO scams. This led to project Defense Launch.

Defense Launch is a hybrid infrastructure, which according to Lyra, brings security reliability and transparency. It also protects against fraudsters.

Strong Compliance Team

While the majority of the work at Defense Launch is around compliance, i.e., double-checking and validating partner projects, the heavyweight task is essentially on the compliance team that does the verifying.

“To build a platform that is fully or 100% free of scams, we are implementing our compliance team that will just double check every single project listed by every single doxxed developer in the world that will try to launch with our platform.

So, when a developer comes to us with an idea, he will be mandated to follow our strict process of double-checking with all the compliance team, to understand if the project is reliable; if he as a developer, is truly doxxed, and; if the main driving idea of the project solves any problem in the real world,”
Lyra explained.

He said that compliance is hard to manage and is strict. Defense Launch has another core team responsible for filtering out and selecting safest assets that can be included in their ecosystem.

Lyra clarifies that any potential scammer attempting to launch on the platform will be blockedlisted and identified by the entire ecosystem.

Taking Custody of ICO Funds

What Defense Launch’s next course of action will be to further protect the interest of partners and that of their end user against fraud?

It doesn’t stop at the compliance counter. Each partner must now redirect 2% of each transaction they make on the platform to Defense Launch’s FGO fund pool.

“The FGO is like a guarantee fund that will insure the development of every single project launched on our platform. To feed the FGO, technology will automatically redirect 2% of each transaction to our own blockchain. On the other hand, the FGO will continue to grow in size, just to be fully prepared for unforeseen events that could happen,”
Lyra noted.

By having partners feed the FGO fund reserve, Lyra explained that it becomes near impossible for scammers to “rug pull everyone” who has invested time, effort, and other tangible resources in an ICO project up to the point of scaling.

“So when we put an ICO in our platform, all the funds that have come to Defense by this ICO will be everything in our hands. We will have a specific wallet for each project and we will be releasing these funds to the company or to the developer behind the project, only if they follow the steps reviewed in the whitepaper roadmap,”
Lyra explained further.

On The Flipside

• Defense Launch is still at a very early and pivotal stage. Although the company is only one year old, it may be difficult to integrate older companies in the sector.
• A 2% guarantee fund may seem low, and could be inconemnent for ICO fraudsters, particularly in the short-term.

What are you supposed to care about?

You Should Care

Watch the full interview here:

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