Eidoo was the first cryptocurrency that hit the market with a full-page advertisement in The Wall Street Journal. But that has become history now. Its place is now taken up by Bitcoin which against various adverse comments have hit a high record of $5,800. We are rather in the event of witnessing the rise of a new global financial system. The uniqueness of the system allows people to have control over their money and have contracts and privacy as always desired.
An amazing feature of this newly evolving crypto world is the ICO. If you see the records then you can easily see that from January 2016 above 250 blockchain members have used this to collect over $1.5 billion. There are certain facts that you must be aware of regarding this nature of currency. Let us make ourselves about such facts.
What is Initial Coin Offering (ICO)?
It is a fundraising method which uses crypto-currencies. It has the ability to create a new crypto-currency and issue tokens which can be used for a new upcoming business. In such nature of investments, the investors acquire early ownership of the currencies and token.
Are there regulations guiding the usage of such currencies?
After the incident of The DAO hacking, the U.S. Securities and Exchange Commission got into action and gave the ruling that under the Securities Act of 1933 and the Securities Exchange Act of 1934, digital coins and tokens that can be had from ICOs are securities and as a result must be subject to federal securities laws. Further than that though, there hasn’t been much supervision from the SEC; they’re still trying to figure out what should be the nature of control that should be implemented.
Will it be good to have regulations in place?
In short, it can be said that it would be good to have such regulations in place. A tighter restraint on ICOs should guide to a better superiority of ICO, and a better excellence would unavoidably entail better or more consumer-ready products for blockchain members, stronger white papers, the acquirement of legal advice, a prearranged landscape, authoritarian expectations, and self-regulation. Schemes with the objective to get-rich-quick will be a thing of the history, and the few outstanding ICOs will be a lot smarter.
How to get started with Initial Coin Offering (ICO)?
Research is the right word that should be used. You must research well before you start. There are various useful websites which will offer you valuable pieces of information.