Concerns are being raised over the “Initial Coin Offering” (ICO) for ICONOMI, a company promising “high profits, not possible in the old economy” using “newly developed financial instruments” that will “drive new investors and fresh capital into decentralised economy”.

The ICO kicked off little over a week ago on the 25th of August and has already raised over $3,000,000 USD worth of funding in various currencies; namely Bitcoin (BTC), Ether (ETH), Lisk (LSK), USD, and EUR.

With a long 26 days remaining, there are those asking if it’s worth investing with so much capital already raised. Many of these concerns arise from the way in which shares are planned to be distributed.

When a deposit is made, the investor is given an estimate on the number of ICN tokens — tokens representing shares in the ICONOMI platform—that they will receive at the end of the ICO. But this estimate falls as more funding is received, as I’ll go into more detail below.

The funds are then locked in escrow and investors may only have their investments returned under the condition that ICONOMI fails to raise at least 2000 BTC worth in funding by the end of the ICO; a target already far surpassed.

There are 100 million ICN tokens in total, and 85 million will be divided amongst the participants of the ICO. The other 15 million are reserved for “early stage marketing and bounties” (2 mil), “advisors” (2 mil), “team” (8 mil), and “reserve for future team” (3 mil).

Thus, the more funds raised, the fewer shares, or “ICN”, participants can expect to receive. However, the 8 million ICN to be split between team members, for example, is unchanging.

ICN Holders Receive Dividends