ESTS ICO Certificate of Excellence

In this day and age, many companies are opening up their ICO (Initial Coin Offerings). Yet, since most ICOs use utility tokens, there are no regulations in place, as yet, to safeguard contributors. Moreover, business start-ups launching their ICO platforms needs assurance that possible clients will invest in their business. In addition, clients need to rest assured that the ICO they are investing in is no fraud.

Through the ESTS Certification of Excellence, ICOs will get the chance to obtain a full analysis of their organisation. The information analysed and verified will give token buyers reassurance on the solidity of the team and project they will be contributing to.

Our team will look into a detailed team due diligence to promoters, the legal correctness of the offer, making sure if the ICO is financial.

Certify your ICO by obtaining an ESTS Certificate of Excellence.

Hereunder is a step by step procedure as to how to achieve the Certificate of Excellence.

Team Due Diligence

One of the main requirements for obtaining the Certificate of Excellence is to undertake team due diligence.

E&S Group undergoes a full due diligence to all ICO promoters. This process involves a detailed insight into a company’s and founder’s background making sure it is no fraud.

Team Due Diligence is divided into two parts being:

  • Due Diligence and,
  • Legal Due Diligence
Team Due Diligence Process

Due Diligence is a different way of audit an ICO promoter. E&S Group shall obtain information from the ICO promoters making sure that they are legitimate and in accordance with the law.

Through Due Diligence our team will investigate the owners of the company in question, making sure that there is no money laundering involved. Moreover, ICO promoters are required to present valid documentation. In addition, Due Diligence procedure will identify Politically Exposed Persons (PEPs), thus establish if they are genuine customers or not. Through these processes, our team will go through all of the clients’ historical financial background.

Hereunder is a list of the documents required for due diligence procedures:

  • A valid Passport documentation;
  • a valid utility bill to proof the fixed residence of the client;
  • valid bank documents and proposed transactions;
  • contractual relations;
  • documents of movable and immovable assets;
  • valid documents of intellectual property;
  • employment status;
  • valid management contracts, and
  • other pending litigations.

Legal Due Diligence

Due Diligence help to identify legal risks that can jeopardise the ICO promoters or their future investors. In addition, our legal team will identify if the ICO in question is lawful and not a fraud.

Furthermore, ICO promoters need to be in accordance with Anti Money Laundering, (AML) and Know Your Customer (KYC) guidelines. By following these regulations, our team will document their findings on the ICO in question. Hence, this report will establish if the upcoming ICO is beneficial for investors or not.

Legal

Here at E&S Group, we provide a reliable legal soundness for ICO promoters. Moreover, our legal team offers advice about token structures before launching and growing the ICO.

E&S legal team provides a detailed analysis, advice and issues a rating to the ICO promoter. In order to obtain the ICO rating our legal team needs to identify and analyse these documents:

  1. The white paper;
  2. consumer protection;
  3. data protection;
  4. token agreement and terms of use.
Listed below are further information regarding these documents.
  1. The White Paper – Every ICO promoter needs to present their respective white paper, documenting in detail their ICO. The white paper needs to have specific clear and realistic projections of the project hence attracting more contributors. Moreover, in order for prospective ICOs to be awarded the Certificate of Excellence, our legal team will rate the content presented on the White Paper. Furthermore, the white paper needs to have clear legal information and in accordance with the applicable legal framework.
  2. Consumer Protection – Since the concept of ICOs is relatively a new concept, no such law regarding consumer protection has been considered. Consumer protection is vital since certain ICOs have manipulated their contributors thus stealing their money. Moreover, ICOs are required to comply with the already established consumer protection law. Our legal team will carry out a detailed analysis of necessary consumer protection law. Through this process, our team will identify and ensure compliance in accordance with the law.
  3. Data Protection – When a contributor registers themselves with an ICO, personal data is handed out to the company. For an ICO to obtain our Certification, our legal team will look into data consent, data processing, and data security measures. These measures need to be verified so to make sure no corrupt parties and liabilities would jeopardise the ICO promoter. Moreover, for an ICO, to obtain our Certification, the ICO promoter will provide responsibility for stored data collected from their investors.
  4. Token Agreement and Terms of Use –Token agreement and terms of use provide legal binding documents. These documents regularise the ICO and the use of Tokens. Moreover, these documents cover ample legal and technical complexities. Through our Certification, the ICO promoter will be given a mark on the quality of such documents.

Financial Feasibility / Tokenomics

As part of such Certification process, E&S Group shall also carry out an assessment of the financial aspect of such project. Such exercise shall provide useful information to the ICO Promoters with respect to the economic viability of the ICO project.

This process involves two key features:

  1. Capital Requirements for the business and
  2. Financial Projections Analysis
Turnover

In order to certify an ICO Project, we will scrutinize expected turnover. These provided Financial Projections shall be subject to the following questions:

  • Which assumptions did you use to determine your tunrover?
  • Did we receive comfort that such turnover is achievable?
  • and: How do these compare to direct and indirect overheads?
Direct Costs and Overheads

Our finance team shall also scrutinise the Direct Costs and Overheads included in the Financial Projections, in respect to both amount and type of the cost, in an attempt to ensure that the Financial Projections are realistic and tenable. According to the nature of the ICO project, the following direct costs and overheads would need to be considered:

  1. Operational Costs
  2. Research & Development
  3. Marketing Costs
  4. Asset Depreciation
  5. Staff Costs
  6. Maintenance Costs
  7. Professional Fees.
Financial Ratio Analysis

Last, but not least, our team shall calculate a series of financial ratios. Through this analysis, our accounts team will analyse the ICO projects profitability, liquidity, efficiency, and leverage.

In order for an ICO project to obtain the Certificate of Excellence, the results of such analysis must denote that the business shall be in good financial health. This entails a full analysis of the future business financial conditions.

From the results obtained through, we will offer a clear picture of where the ICO project will be heading. This is of importance to both the ICO promoters as well as their investors purchasing tokens.

Get your ICO Certified  by sending us an email on [email protected]