But what’s ICO actually? After all, the etymological origin can be easily explained. ICO means Initial Coin Selling, which in turn is derived from the common brand for IPO – IPO, Initial Public Supplying. While genuine shares are traded on this initial listing on the stock market, ICOs deal with tokens. Therefore, a number of these ICOs are actually synonymous as a token sales dubbed – alone, never to call the US Securities and Exchange Commission on the plan. A token, alternatively, is a kind of virtual voucher that acts as a project currency – a currency for this funding. In theory, it is the expenditure in a cryptocurrency that is not yet available at the time of trading. Even so, in the first of all half of 2017 alone, more than $ 180 million provides been committed to such ICOs.
The crux of the account: In contrast to the most greatly monitored IPOs are ICOs and token revenue, let’s say: unregulated. What precisely a trade involves, what buyers get for his or her money, all this is quite spongy formulated or maintained to the very least. In addition, legal safeguards happen to be excluded from the outset in many cases with regards to ICO Listing or token product sales. Whether the investment will finally lead to something? Who is aware of that?
Security Tokens: Blockchain 3.0
Meanwhile, many authorities have explained that the age of Blockchain 3.0 has arrived. After Bitcoin with Blockchain (1.0) and Ethereum with Blockchain (2.0) and its own Smart Contracts, Blockchain (3.0) is currently in the beginning blocks in the sort of security tokens. Security tokens, unlike previous tokens from ICOs, are likewise legally regulated and could therefore be traded on normal stock exchanges – but retain most of the benefits associated with traditional tokens. Projects like Polymath contain just uncovered this market and are trying to build up a standard similar to the ERC20 normal for protection tokens.