If any project is fraud and investors invest on that, what will happen then? people who are investor they may be think, its on your platform than it is ok. They invest and later they come to know that project was a scam. Do you have any checking system to identify of any project either fraud or not .OR are you denying it and its the investors responsibility?
Hi there. It's a good question. As for now, we have only one project that launched in the ecosystem – Cointrapper. It's our team's project. So this one was just added to it.
If we talk about the next projects that will get the possibility to participate and get funded with BRT Network there are several layers of protection from kind of Scam:
1. Each next project that will be added to BRT Network first need to go through votes that made by investors (BRT holders)
2. If the project passes 1st protection layer and gets listed project can participate in investment rounds.
3. Another layer of protection – once investment of project finished – the project gets 50% of funds and 30% of funds only after it fulfills custom project requirements (need to payout minimum amount of dividends). If the project did not go through this 30% is distributed through all BRT holders.
4. Another way of lowering the risk is that 12% of each investment round goes as dividends also to all previously BRT active addresses. So it gives early entry to whole ecosystem most profitable for investor.
There is risk that project may be a scam but its kind of very low.
- Only working projects allowed to participate.
- BRT team also accept or decline request first.
- Investors take decisions to allow or no.
- Project gets only 50% of funds first and rest of amount only when it's started to work and pay dividends
Well in case if even project will get out of the ecosystem and will not pay dividends it will get bad reputation in the internet. But if we talk about dividends and whole ecosystem another projects should pay dividends. So in that particular case token price can be corrected and there is no critical issue.
That's the point of diversification and also why we launched first proved project that will adjust token price and add great support to the whole dividend system.
does it have the team to audit ? because at first glace investor mayn't know it scam but after they could. Before any investment we need to know that.