Bittrex provides an escrow service between coin developers and traders who want a safe way to transact coins. As part of this service, we support the creation of crowd-funding campaigns (CFC). A developer can pitch the community an idea for a crypto-currency and solicit donations that will help with the development of the coin and any other funds that would ensure the successful adoption of the currency. Bittrex will facilitate the safe trading of BTC donations to the development team for the new crypto-currency. Any trades of coins are for crowd-funding purposes (think kickstarter) and cannot guarantee profits or ownership of a company. In short, anything the SEC would consider an unlicensed security cannot be listed by Bittrex.
Before starting the crowd-funding campaign, the development team must:
- Submit to either coinssource.com, or cryptocertify.com for verification
- You will have to also submit at least one member of your team for identity verification by Bittrex and that person's name will be made publicly available
- Agree that the campaign is exclusive to Bittrex; Bittrex will be the source for any and all coins available through the crowd-funding
- Provide Bittrex with wallet code for code review before adding the coin onto our website
- Mine a genesis block with the premine; Any coins not part of the crowd-funding campaign must be disclosed in the ANN thread
- Transfer the premine to Bittrex
- Disclose the terms of the campaign
- The start and end date and time for the CFC. Unless otherwise agreed upon, CFC's will end at midnight PST.
- The price / market cap for the premine
- The conditions for a successful CFC; For instance, the developer will refund all investors if the CFC does not exceed 50% of the premine or meet a specific donation threshold such as 200 BTC
- The schedule for CFC payments; This can be as much as a lump sum after 7 days of the CFC ending or a schedule of payments over a series of months
- The coin team must provide working wallets for Windows, Mac, and Linux, a working block explorer, and a stable blockchain up to 3 days after the end of the campaign
- Publicize the terms clearly on the ANN thread; A link that verifies Bittrex will hold the crowd-funding campaign will be provided and must also be posted on the ANN thread
- Provide Bittrex a minimum non-refundable 5 BTC payment for hosting the escrow. The escrow fee can be increased depending on the complexity of the terms of the crowd-funding campaign.
- An additional 2.5 BTC fee will be paid at the end of a successful crowd-funding campaign
After the CFC period ends:
- Bittrex will verify that the terms of the CFC are met; if it is met, it will start the escrow payment process
- If the terms are not met, Bittrex will refund all purchasers of the coin
- In the case where partial payments are made to the development team and the escrow terms are violated after the CFC period, Bittrex will use the remaining CFC funds to refund holders of the coin by doing a one time swap of coin for BTC at a price of (CFCfunds remaining/Current Market Cap)
- Any unpurchased coins will be destroyed. In the case where terms were not met, all coins will be destroyed.
While Bittrex does verify that the wallets, block explorer, and blockchain work immediately after the CFC period, we do not verify or endorse any claims the developer makes around their business model for the coin of that they will continue to maintain the code base. Before choosing to donate, the user must decide for themselves what level of risk they are willing to take.
We are mindful of scams, copyright violations, and offensive subjects and reserve the right to refuse any coin on our platform and cancel a CFC at any time.