How Developing ICO – ICO. Three small letters. Many of the implications (and not all that good stuff). In fact, many of our associations with the ICO negative today. Fraud, hacking, interesting ideas that are not up to the first line of code. Blockchain responsible for some remarkable discoveries, but tainted by the actions of a few unscrupulous people.
It's time for the promises which are not genuine, lies are really there, and malicious actors to stop the berlumpurnya water. In fact, this is the time for the ICO to start growing.
This Is Not About The Failure Of The
Instead of the possibility of failure that makes investments in ICO so risky. Invest in new businesses at risk. While the statement that 90 percent of Vitalik ICO will fail to surprise cryptocurrency community, he really didn't say anything new.
90 percent of all startup failed, ICO is funded or otherwise. It's just a fact of the business world. Startup Blockchain has not been long enough to say whether their failure to happen faster or not from financing through conventional means. Whether they rose from their failure and pivot their ideas also remains to be seen.
However, the fact that the ICO is open to all and subject them to scrutiny are strictly, and new investors expect success overnight. Teams are often inexperienced and not very good at making accurate forecasts.
Bad Actors Have To Go
All that being said, it is true that fraud ICO could not be considered lightly, or high-profile hacking is minimized. At least 10 percent of all funds ICO from 2017 is lost or stolen, and even the SEC has launched their own fraud to educate and warn investors.
Companies based in the U.S. that holds the ICO began receiving subpoenas. Questions are being asked, and stakeholders wherever became restless.
However, it is a small minority who actually plan to defraud investors out of their money since the beginning. Much larger is the number of bona fide blockchain company uses this vehicle to raise funds. They're certainly not looking for a jail sentence because it does not comply.
Suleyman Duyar Founder Chief Strategists & RenGen Labs said, "in the U.S., I think it is quite clear that the statement from the regulators quite carefully. For me, if I were a startup, I will not do a traditional u.s. ICO I will definitely use the Reg D or Reg CF.
If the year 2017 is the party for one year. 2018 is years of regulation. And like it or don't like it, here's how ICO grows.
ICO Compliant (also known as ICO or STO arranged)
KodakCoin is one of the first companies in the US that has the "ICO obedient." And considering the longevity and reputation of the brand, it is not surprising if they want to do things based on the book.
But there are some ups and downs with holding the ICO set, including red tape, limitations, costs and delays. In fact, after KodakCoin announced that the ICO they will be in January and then had to postpone until May 21, the rumors of fraud began to spread. What is KodakCoin trying to do? If only one of the last efforts of the long camera company scrambling to stay relevant?
Pioneering bleeding (in applicable) paid the price. said Darren Marble CrowdfundX, CEO of the marketing company that represents the KodakCoin. Do something with the book takes time. This involves registration with the SEC and prepare some significant back and forth – is far more complicated than purses web site and ethers.
Since the SEC issued a report June 21, Rule 21 about TheDao which clearly stipulate that the majority of sales mark in the United States will be governed by securities laws that exist, offering token in the U.S. has become much more complicated. Even if publishers tried to comply with securities laws, a number of unresolved issues that complicate the publishing. said Andrew Hinkes, Esq., General Counsel of Athens Blockchain.
ICO accordingly tends to be a new model of the company blockchain will follow, especially with people like Kodak took control.
Doing things the right way
There are several options for the ICO team wants to stay on the right side of the law.
Although the regulation has long been debated over the last few months, the course may be pragmatic.
In RenGen Labs, they take a proactive approach, Duyar shows why fantasize about future rules when regulations currently exist now and it's not really different from a lot of ICO? We only use the existing legal framework to build a platform for people to do more deals complaints.
Without digging too deep behind the legal framework, there is the exception of securities which can be used to launch ICO team for their projects, and four lines that they can travel if they wants to comply with SEC.
Register and hold an IPO.
Not an option available to most of the startup, because holding an IPO requires disclosure of financial information, accounting, tax, business, and significant cost and time. Startup may lack track record to qualify, and the full possibility of IPO is expensive to begin with.
Reg D 506 (c).
This is a quick and relatively easy to collect the money, and you are not limited in the amount of the increase or the extent of the solicitation. However, this exception allows funds raised from accredited investors who verified it. It is more akin to democratize investment and may not appeal to many companies.
Reg A +.
With A + Reg, you can collect as much as $50 million per 18 months, and anyone over the age of 18 years can invest. Because it is set up, You can legally advertise and market your offerings anywhere (including Twitter and Google). But, this is time consuming because you need to have your offer document is reviewed and approved by the SEC. This is also not an option for a startup team because you need at least two years of audited financial statements.
Reg CF.
Setting The Crowdfunding. This is the cheapest and easiest way to launch and run your company. Anyone over the age of 18 years can invest and you can market and asked for a deal. However, you are limited on how much you improve-significantly, in fact. The lid was $1.07 million over a period of 12 months.
Even though the exception is available. Hinkes explained. the bidders still have the problem of Goldilocks. where there is not a perfect match. Each exemption including a significant sacrifice to the extent the amount raised, from whom the funds can be improved, and other restrictions. Publishers need to find an advisor to identify the right bidding strategies to suit the needs of their project.
Conclusion
Doing the right thing is not always the easiest thing. There is no doubt that published the ICO and receive your public purse in the Ether is much easier than registering with the SEC. This is also uncomfortable for investors who have to go through KYC and AML when they invest.
However, the regulation is not intended to inhibit innovation, or complicates things for the company blockchain. It is there to protect investors, and bona fide blockchain team as well.
Or in the words of the policy. Hinkes SEC trying to protect investors and facilitate the establishment of the capital. No doubt, the SEC has stated his desire to allow a token offer to continue and not use rules for choosing winners and losers among the issuer token. The big questions that must be resolved include how well the token issued dealt with in secondary trading, and ongoing obligations of issuers having their fundraising.