ICO Alert Report: DeHedge

cryptocurrency March 16, 2018

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“DeHedge intends to develop and implement hedging tools for the cryptocurrencies market and the initial placement of project tokens. According to our team, hedging is an effective strategy to protect against fluctuations in token rates and cryptocurrencies.”

— Dmitry Ansimov, Co-Founder & COO

ICO Alert Quick Facts

A risk-hedging platform for cryptocurrency investors protecting money invested in ICOs and cryptocurrencies
$0.020625 = 1 DHT
April 2018 — TBD
2,500,000,000 DHT total available / 10,000,000,000 total supply
Pre-ICO includes a 25% bonus

Q&A with Dmitry Ansimov — Co-Founder & COO

ICO Alert: For those who are not familiar with DeHedge, can you explain what it is and what the team aims to accomplish?

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Ansimov: DeHedge is a risk-hedging platform for cryptocurrency investors. We protect money invested in ICOs and cryptocurrencies. DeHedge intends to develop and implement hedging tools for the cryptocurrencies market and the initial placement of project tokens. According to our team, hedging is an effective strategy to protect against fluctuations in token rates and cryptocurrencies.

ICO Alert: How does the DeHedge Token (DHT) function within the platform and why is it needed?

Ansimov: With DHT tokens you can buy hedging. A DHT owner chooses the project, the risks he or she wishes to hedge and the hedging period and pays the hedging premium by sending calculated by the system amount of DHT tokens to DeHedge. The DHT has a utility token function and gives the holder the right to implement hedging of investment of risks in the ICOs of other projects. A DeHedge Token is a commodity and an essential part of the platform. It is used as the hedging premium that triggers the creation of a blockchain record testifying the hedging.

ICO Alert: What methods does DeHedge use to score ICO projects?

Ansimov: DeHedge conducts scoring for projects that are just preparing for the initial placement of their tokens (Pre-ICO, ICO) based on criteria developed by its analytical team in cooperation with the largest Russian and international experts in risk assessment of investments in high-risk products.

The experience and competence of the team and its advisers, the level of maturity of the idea and the quality of its explanation, the existence of a long-term development strategy and roadmap, the elaboration of the economy of the token, and other parameters are all taken into account, thus allowing DeHedge to assign a score to the project in the range from 0 to 100. In our scoring model, there are 11 general parameters and more than 70 detailed ones.

As a result of the scoring, the project is either rejected (the sum of score points is below the specified minimum value) or undergoes an additional evaluation procedure to formulate proposals for hedging for DHT Token holders. Non-standard cases (large transactions or transactions with increased risk) will require additional confirmation of the investment committee formed from the heads of the analytical, risk, and finance boards, along with the head of the company. Based on the results of these processes, costs of hedging positions and significant conditions for such hedging are assigned.

ICO Alert: As we understand it, users of the DeHedge platform are paid out if an ICO they invested in drops below a certain target price. In what currency will those investors be compensated?

Ansimov: For Hedging risks when investing into ICOs, the hedge compensation is paid through the Ethereum smart contract in ETH.

ICO: It’s not uncommon for a token to have different price quotes as it is traded in different online markets. Which source will DeHedge use for their official token price quotes?

Ansimov: DeHedge takes in consideration of available exchanges and calculates the average price for the token quotes on different exchanges. The DeHedge business logic involves a source of information about current token quotes from the outside world, such as oracles. An oracle, in the context of blockchains and smart contracts, is an agent that finds and verifies facts from the real world and logs them in the blockchain for further use by smart contracts.

ICO Alert: Are investors able to hedge against ICOs without purchasing the actual ICO tokens? If not, how is DeHedge able to keep track of which tokens an investor holds or validate that they do, in fact, own those ICO tokens?

Ansimov: No. In order to be hedged, the tokens need to be purchased via DeHedge so that our smart-contracts remember the transaction and amount of tokens purchased. Investors create usernames and have their account with all trackable transactions on DeHedge.

ICO Alert: What is your strategy to attract investors to the DeHedge platform?

Ansimov: We allocate quite a lot of money for marketing, conduct a lot of PR activities, and travel as part of the Roadshow for crypto conferences around the world. In addition, we pay great attention to the development of the community in social media and messengers.

ICO Alert: How will DeHedge options apply in situations like theft of tokens, fraud, or other irregular occurrences where normal market volatility is affected?

Ansimov: There are two clearly distinct cases here:

1. If we talk about theft of tokens from an individual wallet due to a lack of security measures from the investor (or if an exchange/platform is hacked) then it’s not our responsibility, and DeHedge will not cover this.

2. However, if the company is a scam/fraud, and DeHedge had selected this one for hedging, then DeHedge will reimburse the investor based on the terms of the contract between DeHedge and the crypto investor.

ICO Alert: According to your website, DeHedge will sell the DHT tokens to U.S. citizens who are qualified investors. Can you elaborate on how U.S. citizens can qualify to participate?

Ansimov: We aim to facilitate all procedures for our investors and prefer to act proactively in compliance with the legislation, namely, by passing the necessary registration procedures voluntarily. We aim to introduce KYC and AML procedures, officially register the companies within the group and organize activities in each chosen jurisdiction.

We have developed an internal policy of marketing and sales (who can sell, within what amounts, what factors need to be checked) around the world depending on the characteristics of individual jurisdictions and aim to strictly adhere to it. On March 1, 2018, the SEC (Securities and Stock Market Commission) officially confirmed the successful registration of Form D filed by the applicant DH TGE Ltd.

The procedure is a prerequisite for passing registration procedures for Regulation D for the purpose of attracting investment in the United States. It means that DeHedge is one of the first among crypto companies, which has registered of Form D.

ICO Alert: How far along is the project today and when can contributors expect to use the platform? What does the roadmap look like for 2018?

Ansimov: We are at the stage of providing the market with DeHedge MVP. We are about to sign hedging contracts with several companies, and even signed an agreement with Shivom, so the world will soon see the real historic event. This means you can invest in these ICOs (buy their tokens on our platform) and if the rate of their tokens falls below the cost of placement, you will get a payout. This option will be available next week. Within the framework of the MVP, we will be hedging tokens for up to 50% price drops for a period of six months. After we conduct our ICO, we will be able to hedge tokens for up to 100% price drops, as our reserve fund will have been formulated for this very purpose. Moreover, our legal issues are practically settled as we have crated the group of companies with headquarters in the U.K.

Our Pre-Sale has already started and ends on March 29, or once the hardcap is reached. After that, the ICO will be launched in April 2018. Then we plan to arrange testing the platform for token hedging on the secondary market and calibration of the existing scoring model. Here are the general milestones of DeHedge roadmap for 2d and 3d quartiles of 2018: — Launch of the hedging platform for tokens on the secondary market — Launch of the DeHedge research portal — Launch of a product to hedge the risks of mining farmsbuyers from exchange rate fluctuations.

ICO Alert: As a non-DeHedge question, we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?

Ansimov: I would say that 3–5 years is a pretty long time. But in the next 1–2 years, we will most likely observe more regulation, as fiat companies are going to use crypto for the purposes of as a sort of funding resource, more private placements in the industry and it’s level will increase substantially. Also, cryptocurrency departments in investment banks are being developed and this will become normal in the financial world.

ICO Information

The Pre-ICO began on March 15, and will end on March 29, 2018. There is a hard cap of $3,000,000 during the Pre-ICO period with a minimum contribution limit of $300.

$0.0165 = 1 DHT token during the Pre-ICO.

The main ICO will begin in April of 2018, while the end date is yet to be determined.

$0.020625 = 1 DHT token during the main ICO.

Current accepted currencies for DeHedge include BTC, ETH.

DeHedge is an ERC20 token, so it’s important that contributors use ERC20 compatible wallets to send funds to the ICO smart contract, and to receive the DeHedge tokens.

Token Distribution Information

There are a total of 10,000,000,000 DHT tokens being created, with 2,500,000,000 DHT available during both the Pre-ICO and main ICO.

From the DeHedge white paper:

10,000,000,000 (ten billion) DeHedge Tokens will be issued. At the same time, no more than 2,500,000,000 (two and a half billion) Tokens will be offered for placement during the ICO. The reason for offering only 25% of all available Tokens is that DeHedge does not exclude the possibility of conducting additional rounds of sales to increase the main reserve and expand the scale of its business.

Additional rounds are possible only if there is confirmed demand from the market for the DeHedge product line and shortage of existing reserves in ensuring adequate coverage of market demand. After the ICO, the unplaced 7,500,000,000 Tokens (75%) will be frozen until a decision is made to conduct a round of placement, if such a decision is made at all. The decision to hold a next round is based on the recommendation of the DeHedge Investment Committee (collegial authority), as well as on the opinion of the holders of DeHedge platform tokens.

Contributors will have their tokens distributed shortly after the end of the ICO. Visit the DeHedge website for more information and the contribution address.