Mainframe ICO ( CEO Mick Hagen ) – ICO Transparency Document
Mick Hagen the CEO of Mainframe who are currently doing a public ICO sale has kindly answered these questions, so the public have the information they need to make informed decisions. Thanks Mick for being so open and explaining the changes that have happened at Mainframe and why. The answers have raised more questions which are also shown below, which I have also asked Mick if he can help and answer:
How many years has this company been in existence?
Mick’s reply: 1 month. We created a new Delware C-Corp about a month ago. There was a previous company that many members on the team and shareholders were also part of (that was also a Delaware C-Corp). That company was originally created when we started Undrip and then worked on Spatch. That company was about 6 years old.
How much money has the company raised and over what period?
Mick’s reply: This new company has not raised any money via traditional equity financing. However as you know we’re in the process of our own Token Generation Event. The old company raised just over $5M in traditional equity financing.
How many users did you acquire over this period?
Mick’s reply: In our old company much of our work was on protocols and infrastructure so the idea of “users” wasn’t really relevant. With Undrip I think we had maybe 50k users or so. There was a time when we were working with companies and enterprises — we had a couple dozen that we were working closely with in beta.
Which country is the company registered in?
What is the citizenship of the founding teams?
Mick’s reply: I’m a US citizen.
Has there been any change in the board of the company in the past 12 months? If so who and why?
Mick’s reply: No. The new entity is brand new. These changes to the Board were required to make sure that we were set up for long-term success. We didn’t want this project to be limited or constrained in any way — especially by a group of preferred shareholders who just didn’t have much experience in crypto or blockchain technology (most of them had invested in us 3+ years ago). We needed to shed some of the legacy baggage that goes all the way back to Undrip (a completely different product).
Has the founding team changed in anyway in the past 12 months? If so who and why?
Mick’s reply: No. It’s a new entity and there have been no changes in the last month. My original cofounder of Undrip (6 years ago) is not with the new company. He left a while ago and we wrote more about it in this blog post
Has there been any change in the shareholders in the past 12 months? If so what and why?
Mick’s reply: All the shareholders from the old company were brought into the new company — with a few changes. All preferred shares owned by existing preferred shareholders were converted to common stock (same class as employees). Preferred shareholder ownership in the new entity has decreased (while core contributor ownership increased). However, to compensate for some of these changes (which many were reluctant to accept at first), they were given a percentage of MFT tokens (with a lock-up/release schedule). Thankfully, every single one of our existing preferred shareholders supported this plan and agreed to it. We spent a lot of time with them communicating why this was important and how it would ultimately be better for them.
Do any of the founding team have any involvement in helping raising finances for other Tokens? Is the person in question regulated to do so? Who?
No, none of us help raise money for other projects. However, some of the team members have participated in other ICOs from other projects from their own personal funds and as personal investors. We’ve only participated in ICOs where we are legally allowed to do so.
I hear you have a syndicate where you raise money for other ICOs, are you regulated to do this?
We aren’t helping raise money for other ICOs. We aren’t promoting these projects and soliciting investment on behalf of them. We are a group of friends who simply pool money together — basically an investment club — and we are participating in ICOs. As mentioned, we use our own personal funds and we only participate where we are legally allowed to participate.
If the ICO is succesful who will control the spends of the money?
Mick’s reply: Our team. People would be trusting us with the funds to make smart and wise decisions. If they don’t believe in our ability to use those funds wisely then they should not participate in the Token Generation Event.
New question: Who is “our team” who legally has control over the spends of the money? What precautions are in place to make sure the money raised is responsibly spent?
New question:What shareholding do you and your brother have of the company?
Can someone please post these into the Mainframe Telegram Group please: