Quote from: Cryptodude2020 on November 08, 2018, 07:06:03 PM

While this is a great idea, I am not sure if this will really be practical. Let me try to put it in context by giving an example.

So you have a new team that develops a good idea into a project and does ICO. The assess the coin/token price to be 10 cents and ICO is a success. The coin/token is added to multiple exchanges and start selling in the range of 8 - 12 cents.

Right then Jan 2018 happens and entire Crypto market tanks for a long time (like now) and then the coin is now worth $0.001 cents (I am not making it up, if you look up there are at least 50+ example of this).

Now at what point one need to decide to release fund to investor. Remember the team is still committed and believes in their project. Also there is chance that what they do in their road map 2 year (or more) down the line can make this coin/token worth $1 or more.

Well here quote of my previous reply :

Quote from: Whitly on November 08, 2018, 09:35:39 AM

And NO, that's won't be a place that will say "Invest in this ICO and multiple your coins in "X" times. This "Fund" will just give guarantees, that you will able to get your money back with profit or without from ICOs participate in this kind of funding. Otherwise, you can expect to get your money back from this Fund. So, you have a chance to invest in other ICOs without having any guarantees to get at least amount, you invested back or do relatively "safe" investments in ICOs that participate in this fund.

Which means, that this fund is not going to promise, that you will make any profit, it just can promise that you will get the full amount, that you invested.

From your example :

"The assess the coin/token price to be 10 cents and ICO is a success. The coin/token is added to multiple exchanges and start selling in the range of 8 - 12 cents."

Which means that you able to cash out your investments + or without profit - that's all.
But, if you decided to keep your investments and token/coin down to 0.001$ after a month or so, a fund can do nothing with that since you had a chance to cash out your investments + or without profit. (and that's a bad example, since we can do nothing with BTC/ETH price drops / ups. And if a person invested 100$ in BTC equivalent, but then ICO turn into a scam and BTC down on 20%, the person can expect to receive the exact amount in BTC, that will equivalent 80$)

Otherwise if will happen that :

Quote from: Cryptodude2020 on November 08, 2018, 07:06:03 PM

Also when a project tanks (and dev and other team disappears) who are you going to reach out to get money back?

And the project will turn into a scam, since the fund was getting % from every transaction (token purchase) during ICO. So, no need to contact or search for someone, users that participated in this ICO will able to receive a full refund.