CLOUT Tokens’ Pre-sale – Schedule, ICO and Milestones to Watch
CLOUT Technologies is a company incorporated and registered in Nevis. It’s is a blockchain based hub that provides one-stop solution to investors on all things crypto – investment, news and media. Blockchain technology has left immense impact on the society at large by bringing financial and technological advancements to businesses, and it’s here to stay. The company’s core competencies lie in the development of CLOUT platform, using decentralized software architecture. CLOUT provides a home to the curious blockchain community where it can thrive and maximize its influence or clout in the world of crypto currencies.
More on blockchain technology
Blockchain technology serves as a distributed, digital ledger in which wallet addresses, digital asset balances and transactions are chronologically recorded. The CLOUT platform leverages blockchain technology to incentivize content creators and curators for posting and sharing high quality content globally. CLOUT is versatile, it’s fractionally transferable, divisible and functional.
CLOUT – incentivizing the content creators and readers
CLOUT has created a social-media platform where user-generated digital content is incentivized, revenue generated through advertising is shared among the content creators, and the tenets of decentralization and crypto currencies are advanced. On the other hand, readers are also financially incentivized to curate the content and monitor the platform. The users will be able to register or login at the CLOUT (ICOTokenNews) platform through their social media accounts like Facebook, Twitter. Once the account is created, the user will be able to edit their profile including images, contacts etc. The user dash board will feature a built-in wallet and CLC tokens, the latter serving as fuel for the platform. When a member’s post is found accurate or liked by the cryptocurrency community, a percentage of clout currency or CLC tokens gathered will be paid back to the original content poster.
Media meeting the crypto currency
This way, CLOUT offers a platform for the blockchain community to share information and thrive, as the rapid adoption of the technology continues worldwide. By incentivizing quality content, CLOUT ensures that writers create impartial and honest reviews of ICO and crypto currency events for the benefit of blockchain community and cryptocurrency investors, instead of biased articles that are often posted in the traditional print media to highlight the entities that pay them. CLOUT platform aims to evaluate and provide analysis of all current and upcoming ICOs for the benefit of traders, investors and curious readers in general. It’s here that the media meets crypto currency.
Understanding the difference between Coin and Token
Blockchain values are described in Coins and Tokens. Though they are often used interchangeably, there are some differences in their functions and forms. While a crypto coin is a means of payment, blockchain coupons cannot be considered money in the same way as coins are. Tokens are often hosted on another blockchain like Ethereum protocol that allows for their creation using core coins. Coins tend to take the form of native blockchain tokens, and act as a form of money. On the other hand, tokens may deliver value to the investors beyond the speculative returns, and offer functionalities over and above to the digital cash.
Tokens allow for the creation of decentralized networks blending the best architectural properties of proprietary and open networks. They provide ways to incentivize the participants including investors, users and developers.
The lines between coins and tokens are blurred and both are used to exchange value through payment. Being a cutting-edge sector, the language will continue to evolve with technology.
To summarize, while Coin = Cash, Tokens are used for everything else in the cryptocurreny markets, and are akin to shares in the traditional stock markets.
How do tokens work?
Tokens embody tradable goods like coins, in-game items, certificates, etc. They can be used to represent a share in a company. They are used to raise funds in a crowdsale, and are invariably referred as crypto assets, cryptocurrency assets and crypto equity. Tokens are announced and published on crypto currency exchanges. Users can trade with tokens once the ICO has finished. Note that token created by the Ethereum Code can get frozen due to government regulation or if something happens, and cannot be moved until unfreezing is done. Tokens may soon be perceived as a breakthrough in the design and development of open networks.
Basics of Initial Coin Offering (ICO)
ICOs are lunched most often by the startups to fund crypto currency projects. ICOs allow crypto currency project creators to raise money for their operations. In an ICO event, a new crypto currency project sells part of its tokens to early adopters in exchange for money. Though there are notable similarities between ICO and Initial Public Offerings (IPO) of the traditional stock markets, there are significant differences as well between the two. While both of them are used to sell a stake and raise money, ICOs are not regulated by the government organizations and there are, generally speaking, no investor protections other than the ones inbuilt in the platform.
Most ICOs are marketed as software presale tokens. ICO is run for few weeks to raise as much money as there is demand. Some ICOs come with a cap on total amount. A small percentage of tokens is generally used in early promotion bounties by the ICO providers. On completion of the ICO, tokens are listed on cryptocurrency exchanges that can be traded against other cryptocurrencies like Bitcoin, Ethereum, Litecash etc.
The CLOUT platform has two native tokens
- CLOUT token, or simply the CLOUT
- CLOUT Currency, or CLC.
CLC is generated by holding CLOUT to CLC token holders to ensure that they have vested interest in CLOUT platform, which will incentivize them to work in its best interests. The initial amount of CLC and CLOUT will be equal, and will be distributed among the participants at 1-1 ratio.
The company will raise the CLOUT tokens as below:
- Maximum CLOUT tokens to be created: 100 million
- Maximum number of CLC to be generated: 1 billion
The first batch of the CLC is being generated at the rate of 1-1 per year through auto-genesis mining. CLC tokens will be distributed in proportion to the CLOUT tokens held. CLOUT purchase during ICO will get corresponding CLC at no extra cost while those purchased after the closure of ICO will need to wait till additional CLCs are generated. Every subsequent batch will take one additional year after the close of the Initial Coin Offering or ICO (website link) to generate.
CLC issuance schedule
Here is the CLC issuance schedule to watch.
Post ICO (November 2017): 100 million
Year CLCs to be issued
2018 100 million
2020 100 million
2023 100 million
2027 100 million
2032 100 million
2038 100 million
2045 100 million
2053 100 million
2062 100 million
Throughout the lifetime of CLOUT platform, a maximum of one billion CLC will ever be generated by the year 2062. This limit will be achieved with increasing rate of new block generation. CLC tokens will be distributed proportionately among the holders as per the CLOUT tokens held.
Safeguarding the interests of participants
The CLOUT ecosystem is based on ERC-223 token which eliminates the problem of “lost tokens” and uses half the gas needed for ERC-20 tokens. If a participant happens to transfer ETH from an exchange to the ICO deposit address of CLOUT, the ETH, quite unlike ERC-20 tokens, will not be eliminated and instead returned to the participant. This way, ERC-223 provides a safer transfer system for crypto currencies to the ICO participants. This improved functionality of the token will ultimately benefit and safeguard the participants from inadvertent and fraudulent transfers.
CLC token allocation will be done as follows:
- 5% tokens to be distributed during pre-ICO sale.
- 30% will be used to pay bounties for the development of CLOUT platform and motivate the developers.
- 25% token will be used to invest in ICOs, crypto currencies and other blockchain projects.
- 10% tokens will be allocated to project supporters.
- 5% tokens will be released by the founders during a 20-month period.
- 5% will be distributed among the CLOUT developers and executives overtime.
- 5% tokens will be released every year over the next five years.
CLOUT token sale will be completed in two parts:
- Pre ICO sale, and
- Main ICO
Pre ICO sale of tokens will continue from 27th of September 2017 to 17th of November 2017 or until 2.5 million tokens are sold, when 2.5% or 25 million CLOUT tokens will be sold at $1/CLOUT. Digital currency bitcoin (BTC), Etherium (ETH) and fiat currencies will be accepted during pre-ICO sales. Minimum participation amount for the pre-sale of CLOUT ICO token is 1 BTC (= 10 ETH).
Registering for CLOUT pre-sale and ICO participation
Participants will be required to register their credentials on CLOUT to participate in Pre-Sale and ICO. Their identity documents will be verified and synced with their wallet address. Two factor authentication (2FA) will be required to access the wallet.
Receiving CLOUT token positions
CLOUT smart contracts system ensures that each member receives their CLOUT token positions on a timed-release schedule. Each member will realize 5% of their total tokens per month after the completion of the ICO, for a period of 20 months. Thus will ensure that none of the team members would be in a position to potentially compromise the appreciation of the CLOUT token’s value in the open market. Participants from high risk areas or investing for amounts in excess of USD 13,160 will be required to disclose their source of funds and wealth.
There will be Hard Cap of $50 million and Individual Cap of $1 million.
The Smart Contract System shall create and issue 5M Tier 1, 3M Tier 2, 2M Tier 3 and 2,5M presale tokens during the contribution period.
Minimum aggregate contribution target is USD 5 million.
The contribution period will end if:
- Ether contributions of USD 50 million are received by the smart contract system, or
- Four weeks have expired from the commencement of Contribution Period.
Unsold tokens of ICO will be burned.
Taking full advantage of the platform’s capacity
CLC tokens allow the participants to take full advantage of the platform’s capacity. Users without CLC will be able to access CLOUT network as “read only” but cannot contribute to the community. Users are incentivized to keep their CLC to leverage the benefits of the platform’s interactivity while CLOUT holders are incentivized through auto-mined CLCs as defined by the economic model.
Smart Contracts System with added protection
Distribution of CLOUT tokens will be achieved through CLOUT smart contracts which will be subject to auditing by ICOrating, a reputed independent professional company. Smart contract system or SCS is deployed in Ethereum blockchain by CLOUT to receive contributions and creating its own proprietary CLOUT tokens to issue them to ERC223 standard compliant Ethereum wallet. The ability of CLOUT smart contracts to release tokens at a decaying rate over time will help safeguard the interests of the participants as they will not lose their contributions immediately after massive sell-off of tokens by an ICO.
Use of proceeds
Assuming that $50M USC cap is raised, the CLOUT envisages to use the funds as below:
- 40% will be used in marketing and branding
- 30% will be used for research and development
- 15% will be utilized to strengthen bilateral business relationships
- 5% will be used to complete legalities and address other legal issues
- 10% will be kept for miscellaneous use.
Multi-signature wallet with auditing safeguards
Funds collected during the CLOUT token sale will be securely held in multi-signature wallet which will be signed by an independent person. An independent company will audit the smart contracts for the likelihood of exploits, impact of bugs, terminology assessment and other major issues, if any.
Below are the key risks that my effect CLC and CLOUT
- Digital currency market trends may have an effect on the value of CLOUT tokens.
- Target sale amount is attainable but not assured.
- Competitors may acquire significant market share.
- Execution of business plan will be delayed if crowdfunding efforts fail.
- Market saturation may devalue the tokens.
- International laws may mandate taxation and erode token be
- Blockchain used for CLOUT smart contract system is susceptible to a variety of mining attacks including double-spend attacks, race condition attacks and self-mining attacks.
- Smart Contract System and its underlying applications may be exposed to attack by hackers.
- There is an inherent risk in smart contract system software. It could have weaknesses and vulnerabilities that my inter alia result in the complete loss of tokens.
- If your private key or wallet gets lost or stolen, the password and token will be permanently lost and cannot be recovered. If any third party gains access to your login credentials, it may be able to misappropriate your tokens.