What is FIC Network?

FIC Network is a decentralized blockchain platform for the investing and trading of fixed-income securities. The FIC Network team believes that there are many current problems with the US$90 trillion fixed-income investing market. Settlement times are slow, taking at least a few days and up to a week or two for most transactions to clear. Costs are high because of the trusted intermediaries required to run the system. Security is costly because data is held on centralized servers.

The FIC Network team believes this problem can be fixed by creating a blockchain platform for the trading of loans, bonds, ABS, credit default swaps, and other fixed-income instruments

How does FIC Network work?

The FIC Network is based on the Stellar Protocol, with some extra features created to adapt Stellar to the world of fixed-income assets. Like Stellar, FIC employs two primary concepts: assets and accounts. Accounts include users and financial instruments. Assets include "currency tokens" that can be redeemed for currency and “expected cash flows” (ECBs) that pay an income in the form of a currency token.

Financial instruments are accounts that create ECBs. Users are accounts that create or change financial instruments or issue or hold currency tokens.

Some of the users on the network are "gateways" that issue currency-tokens backed by real currency. However, a particular user cannot hold a particular token unless a “trust line” is built between the user and the gateway. This ensures that no user ends up accidentally holding a token from an issuer they do not trust.

The FIC Network contains an exchange system that allows it to handle trades between users who only trust certain currencies. If a user with U.S. dollars wants to buy an asset from a person who only accepts Euros, the network’s algorithm will try to find another user who can trade Euros for dollars at an agreeable price. It can do this with up to six degrees of separation.

When a bond or loan is redeemed, it is paid off in currency tokens, which are then exchanged at a gateway for real currency. In this way, any fixed-income instrument can be owned and traded on a blockchain. This dramatically lowers costs, speeds transactions, and increases security.

How is FIC Network unique?

The closest competitors to the FIC Network are major brokerages that carry fixed-income investments. These include TD Ameritrade, Fidelity, TradeKing, and similar platforms. However, these platforms are very slow and costly. These problems are inherent to centralized trading systems. For this reason, the FIC Network believes it can effectively compete with these platforms.

Who makes up the team behind FIC Network?

The FIC Network team is made up of experts in the fixed-income investing market, engineering, sales, and marketing. It includes CEO Arturs Ivanovs (also involved with Startupbootcamp FinTech, Boost VC, and Turing Funds), COO Alvar SooSaar (former Managing Director and Co-Founder of Fisher Row Capital), Senior Network Architecture Advisor Aigars Staks (Managing Director of Agile & Co.), Software Developer Kalvis Kalnins, Interim Head of Technology Anatoly Ressin, Chief Scientist and Product Support Manager Agnese Kerubina, Backend and Blockchain Developer Peteris Ratnieks, Head of Communications Aleksandrs Borovenskis, and lead Designer Valters Grisans.

The team is advised by Joseph Guagliardo, Matis Ansviesulis, Angel Colon, Ismael Malik, Jon Chou, Marcus Spillane, Anthony Georgiades, and Joon Pak.

More details about the FIC Network ICO

The FIC Network ICO is launching in July of 2018. Investors who wish to participate will need to sign up for the whitelist. For the public, tokens will be transferable as soon as the ICO ends.

The FIC Network (FIC) tokens will cost US$0.0002 each, to be paid in ETH equivalent. There is no minimum purchase amount for individual investors. The team hopes to raise US$16 million total.

Originally, the team planned to release a different coin called "eFIC," which would have been replaced by FIC after the mainnet launch. However, the team accomplished the mainnet launch ahead of schedule and decided to go ahead with the sale of the final coin (FIC).

The July public sale will comply with the following allocation strategy:

  • 50% of the tokens will be sold in the ICO

  • 30% will be reserved for future needs

  • 20% will be given to the team

The proceeds from the sale will be used in the following manner:

  • 39% will be spent on people and operations

  • 35% will be used for development

  • 13% will be used for marketing and business development

  • 7% will be spent on legal costs

  • 6% will be consumed through services and other costs