New Crypto Token To Launch Courtesy of Former Telegram Employee

New Crypto Token

Anton Rosenberg, the former director of special projects from Telegram, revealed the launch of a new cryptocurrency trading platform. Rosenberg says it seeks to help blockchain startups stabilize the prices of their tokens.

Dubbed Mikado, the crypto derivatives trading platform aims to provide a solution for projects that are planning an initial coin offering (ICO) and want to avoid the price collapse that happens when an open sale starts and early investors drop their tokens. Rosenberg, in an interview, told crypto-focused media website Coindesk.com that :

“Many companies who are doing ICOs are trying to get investors’ attention by big bonuses and discounts without an understanding how it will affect the price after the ICO.”

In traditional financial markets, underwriters and market makers typically help companies restructure their IPOs, but the ICO market doesn’t have access to institutions and mechanisms to help plan a gradual release of liquid tokens. This is where Mikado will come in to help, Rosenberg says.

Mikado will issue a derivative for any tokens that are locked up, such as a bonus token for early investors, or tokens distributed among the project’s employees to encourage their work. The project can then transfer these locked tokens to a specially created escrow account, and investors will then receive derivative Mikado tokens (MKT) which they can sell. After the lockup period has finished, the MKT will be burnt and holders will then receive an equivalent amount of the original token they invested in.

Rosenberg says of the project:

“Locking up coins is a convenient tool, but not very efficient. They can plan several lock-up periods, gradually release their tokens and control the trading volume. Mikado is promising a tool to create a “stable commodity-based economy”

The firm does not plan to launch an ICO for its own token, to avoid having MKT considered a security, says Andrew Nayman, Mikado’s chief executive. As of now, the project is applying for a distributed ledger technology (DLT) license in Gibraltar. Afterward, Mikado plans on registering with the U.S. Securities and Trademark Commission.

Related Cryptocurrency News