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Whitelist vs White Whale. How Registration Can Protect ICOs from “Killer Whales” Wrecking the Projects

Before now, the “whales” used to buy out all the coins of the promising ICOs at the pre-sale stage, that is why common investors had to enjoy the benefits of none. For other investors to be able to buy coins and to prevent the “whales” from manipulating the exchange rate, a whitelisting process was created.

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Сryptoassetsrank.com Published on Jul 11, 2018
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Before now, the “whales” used to buy out all the coins of the promising ICOs at the pre-sale stage, that is why common investors had to enjoy the benefits of none. For other investors to be able to buy coins and to prevent the “whales” from manipulating the exchange rate, a whitelisting process was created.

What is a whitelist?

A whitelist  means a list of the registered participants that guarantees that the investors will have an early access to buying tokens, i.e. during the pre-sale. If you have not registered in advance, you will be able to buy the tokens only during the token sale.

Whitelist registration at the IP Exchange project website

The difference is that:

  • during the pre-sale the tokens are sold at a lower price;
  • there can be not enough tokens for everyone. The projects have a limit of funds to be raised (a hard cap) that is reached by the participants at the pre-sale stage.

Why is a whitelist required?

  1. For the investment process to comply with the rules of the local regulator. It should know where the investments come from because some countries (for example, China) do not allow their citizens to take part in ICOs. If they take part in the token sale, the project can be closed down.
  2. For increasing the number of investors to provide a uniform distribution of the coins.
    For example: The BAT company raised $30 million during 27 seconds thanks to the “whales”, who invested millions of dollars. Most of the investors did not have a chance to participate in the token sale because the hard cap was reached too quickly and the ICO ended.

Whitelist registration

You need to visit the project’s website and to get registered. Indicate the real data, so that no problems arise with KYC later on: first name, last name, the sum of money you are willing to invest, the country of residence and your wallet address. Also, you need to agree with the startup’s terms and conditions.

Know Your Customer (KYC) is a requirement to submit personal data for identity verification. You will need:

  • a photo of your passport and passport cover;
  • address, postal code;
  • first name, last name;
  • date of birth;
  • a selfie;
  • a selfie with your passport;
  • a document confirming your place of residence.

Submit your application and wait for the registration.

Can your application be declined?

Not everyone gets whitelisted. Some whitelists contain only accredited investors, the developers’ friends and families, the project partners, venture capital funds.

You might fail to get whitelisted because of the minimum investment amount that is required. Let us suppose that you want to invest $5,000 but the minimum investment amount is $50,000. In this case you will either have to find the rest of the required amount or to look for another startup.

Maybe, you made some mistakes when filling in the application form (filled in incorrect contact details, made a fuzzy photo, didn’t submit the document confirming your place of residence), so the developers decided that you are a fraud artist.

If you received a refusal, find a different startup in our ICO list, where we have filtered the ICOs with a whitelist.

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