Will ICOs Change the Rules for Companies Looking to IPO?

in cryptocurrency •  7 years ago  (edited)

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A New Type of Equity


Initial Coin Offerings / ICOs have been one of the hottest topics throughout 2017, allowing new companies to produce massive amounts of wealth while circumventing the traditional roadmap of investment and equity distribution. In today’s video, we go through some of the exciting aspects of ICOs and using token systems for a company over the IPO route.

Initial Coin Offerings provide a way for companies looking to integrate blockchain tech to kickstart their operation by selling their own token. The number and initial price of the coins are determined by the team and anyone who believes in the company and/or the financial potential can purchase the distributed amount. We’ve seen companies ICO for 10s, even 100s of millions, all without giving away even 1 percent of traditional “company shares.” This changes the whole decision-making dynamic of businesses and opens up new ways of empowering the token holder compared to how stocks/shares operate after an IPO.

Do you think ICOs will be a mainstay and valuable tool for the foreseeable future? Or do you think it’s a short-term gimmick? Do you ever see yourself pursuing an ICO? Let us know what you think below!

Video Animation created by competition winner @leotrap.

Music by Joakim Karud


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Yes, definitely ICO's will chage the way companies raise money and go public.
I like the idea of giving investors good return in the form of increase in the price of your coin without giving any share in the company.
I am just worried when governments will allow that publically.

It'll definitely take some time for local governments to wrap their heads around this one. Time will tell!

It's a fascinating way to democratize the windows open to "investors" (with ICOs, everyone!)

There is one "small" problem around ICO's ... Frankly only few coins will be succesfull in the end.... and other people will lose money like in " DOT.COM bubble " ...
I am also for free economics but I feel that these massive raising money from ICO's without any regulations can be very bad for a lot of people...Thats why Facebook block ICO's advertising...HUGE RISK and many people are not aware of that risk in my opinion .. maxresdefault.jpg

  ·  7 years ago Reveal Comment

Definitely agree, would you be able to expand on your record label ICO analogy?! I am interested to see how a community that invests in a local record label would evolve and are the pros and cons. How does if affect the record company, how does it affect individual community members, and how would this compare to the current way of doing things.

Would love a more practical example, thanks @sndbox

Thanks for the great question @walnut1! Another way to look at the ICO analogy is through the lens of an SMT (or Steem's Smart Media Tokens)... so let's replace the Record Shop with something like a Public Park.

A public park could ICO and create a Park Coin that could be used to fund programs and renovation projects within the park. Park visitors could potentially earn Park Coin for good deeds they provide like trash pickup, food drives or tree planting volunteer work, etc. Those who see value in the potential of this PC economy could invest in the token. As time goes on, you could imagine other parks in the same neighborhood adopting the coin and begin using it to kickstart programs or bolster existing networks.

An ICO could allow local neighborhood to invest in the resources of their "backyard" so to speak. Basically, creating neighborhood equity. Park Coin is far more accessible to people than something like an IPO with limited exchanges, thresholds of investors, and times for trading etc.

So that's just one example of how ICOs can empower multiple types of networks. Ultimately, it's a much more democratized method of owning and supporting a cause, cultural asset, or company.

you can search for different companies. @titanik

How do you mean? Can you give me an example

ICO's offer a great opportunity for new technologies to emerge that otherwise would not make it out the ground floor. However, I see the fault of the system as well, many people will lose thousands and if not millions because the system does not guarantee a return on the investment which is something bound to be exploited by less than honest entities. you said in the article, we are investing in a token which does not offer any guaranteeing that traditional share offers. ok, you support the technology and if the development is good you might see some return however how can you prosecute a team that just gave up after they collected the ICO money.

Thanks for the post. I only know ICO and this is the first time I've heard of IPO. I guess I need more research :)

Definitely, not only that but looks like in the years to come the laws will open up and you can get anyone from anywhere in the world to invest in your ICO.
Issuing dividends will be another application that lets more money go into the pockets of the investors.

  ·  7 years ago (edited)

ICOs are revolutionizing the startup ecosystem and are fundamentally changing the startup landscape because of the liquidity they provide to team members and investors, beyond what anyone thought possible. Kickstarter proved the idea that people were willing to prepurchase a product, and now ICOs are taking that same idea and applying it to software and services. We have barely seen the disruption as few of the companies funded through ICOs have been brought to market, but the future is bright and wide open. Blockchain and cryptocurrency have the ability to revolutionize the way tech gets done now.
For this to fully work, there is a lot of work that still needs to take place. Teams and investors need to avoid pump & dump scams and insiders taking advantage of the public. The industry is still in the early stages, but already is revolutionizing how startups raise money. As more oversight comes into the market, we should see a fundamental shift in how startups provide equity to their team.

ICO’s are a great way to get interest in your project, reward your potential early customers and in some cases raise cash. In my view, rather than government regulation, it will be better computer code that will guide the evolution: “Smart contracts for smarter crowdfunding”.

I think they will change the game. Traditional stocks and trading is so complex to people who haven't taken an early interest in it so it's hard to get into. With ICO's its so fresh and new and this generation that I think younger people will gravitate towards them.

I agree, ICO will be more advanced in 2018 continue to improve progress so people know for investment, I want to know more about ICO so I can invest. success for this program to move forward.

ICO's fame within the next 10 years, it could be more than that time everything will be a lost dream

Thanks for this cryptocurrency news update providing....
i appreciate this dtube channel, keep it up

I somehow agree with this but it seems it will take a few years. hope the investing will make money for investors

Talks are so useful

Top 7 ICOs for Non-Profits to Watch in 2018, More here at Disruptor Daily.

They won't change anything soon. It's too difficult now...

your piece is very good, i need support from you friend. visit my @samsul007

Woow..the longer the crypto grows. hopefully we can learn a lot from some crypto that has ever IPO.
Thanks for information

how will we win @titanik

  ·  7 years ago (edited)

Amazing. The video is taking a bit too long to load but I am trying again and again. I trust I will learn a thing or two from this video

Thanks for sharing i will done upvote I always see your post.
good job.

Obviously, it is an exciting aspect.I am not yet pursuing of ICO.Now i am trying to know details about it.
I will wait for your next post.

great post about crypto, thanks for share.

Without any doubt, the broadened concept of ICOs have far more potential, market and control as compared to conventional IPOs which are limited to a certain country and specified stock markets.
But here is another thing, unlike IPOs, ICOs don't have legality and involvement of Banks as intermediary promissory party which enhance the public trust in it. You guys @voronoi @hansikhouse are surely aware of ICOs scams happened in the recent past. Even another hot topic on google trending is "How to initiate ICO scam in five easy steps" LOL. How could we neglect all such aspects of ICOs?
As you guys are discussing everything in detail, Please highlight and discuss security issues as well.
Thanks.

Hello, pienso que todas las ofertas de monedas están sujetas a una inestabilidad y riesgo extremo, por lo que si queremos invertir vale la pena hacerlo pero con la debida diligencia y estar bien informado

Yes i guess.. Time has changed and people would rather invest in ICO than IPO.

thanks for this post cryptpcurrency
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encouraging & significant!

Do you think ICOs will be a mainstay and valuable tool for the foreseeable future? Or do you think it’s a short-term gimmick? Do you ever see yourself pursuing an ICO? Let us know what you think below!

I think ICO will be here for ages, but I do not think it will remain the same.

Right now, the process is just too risky. So unorganized. The hype around these projects is incredible, the rules are too foggy and the money involved is incredibly high.

I think, somehow, an order should be stablished. Maybe the model will evolve into a "crowdfunding" kinda model, where users can check the reputation and other scores.

But I think trying to fight this is useless. Crypto is here to stay, so is ICO.

  ·  7 years ago (edited)

Being Global and the Private/Public fact as you said is the Key for the sucess... and when you talked abouth the 20th Century Companies, haha... that laughs are a great resume/answer for Fiat Lovers!

Token system!!!!!!! that's a great system...
there have no any problem over an IPO route......
@upvoted @resteemit

i would believe that ICO would help any company grow capital without loosing shares, but it still heavily rely on the company portfolio. like IPO investor still would like to gain something back in long run, and the company have to make their coin offering are as durable as their share. So that public are interested in it.

In Russia a new platform for ICO was annonced by both comunity and state owned bank. The goal is to protect investors from scam project and make the process more transparent. What do you think, will it lead to mass adoption of ICO model or will it be a major failure? https://steemit.com/crypto/@cryptohumster/new-platform-to-offer-protection-of-crypto-investments-in-russia

Of course ICOs has come to be nothing less than a Long-term gimmick! What are you saying? Companies going publicly by ICOs will in turn make more return, in the sense that with their former method of traditional share approach, only the wealthy invests. But in this ICO approach, both the wealthty and average and low class can invest. The lower class can add a little money to get tokens added to the ICO as the case may be, and the wealthy can later purchase more even without getting the ICOs making the company gain both from the upper class and the lower class at the same time. But in traditional share approach, it is always difficult for the lower class to participate.

good work, hopefully everything works well, and hopefully the digitized currency will continue to prevail in 2018 @sndbox

its a great fund raising tool

I got very excited about ICO's and actually did pretty well on one of them. Then I got discouraged because it seems like so many of them don't allow users from the US. I know that there is a long way to go and the blockchain technology isn't fully understood but I hope that more of these open up for US customers and businesses...in the end I think it will help all of us reach new heights!

Thank you for the video it was really great and informative! I do see Ico’s a fantastic way for technologies to get off the ground however the only problem I see is with the initial pump and dump when it’s released and tradable. I hope quite a few follow Bitxcoin’s way of releasing their Ico with it being tiered to being only able to withdraw 8% of the contributed amount for the first few initial months after its release. I feel it will stop the drop rate of the ‘dumping’ with the coins if done this way.