Bitcoin, Crypto currency, Blockchain

What is an ICO? What is a Security Token?

c7d88c5c49078707572d165cd769090a - What is an ICO? What is a Security Token?

ICO: What is it actually?

But what is ICO? The Etymological origin is easily explained. ICO stands for Initial Coin Offering, which is derived, in turn, to the commonly-used name for the IPO – IPO, Initial Public Offering. While such initial placement on the stock exchange real shares in the company are traded, in the case of ICOs to trade with Tokens. Therefore, many of these ICOs are not, in the meantime, as a Token Sales dubbed – alone, to call the U.S. securities and exchange Commission SEC to the Plan. A Token is, in turn, a kind of virtual Coupon, the sale produced as a project currency – a currency for this funding. In principle, it is the investment in a crypto currency that is not in the proper sense, at the time of the trade is still available. Alone in the first half of 2017 were not invested more in spite of already more than 180 million US dollars in such ICOs.

The crux of the story: In contrast to the heavily monitored IPOs are unregulated ICOs, respectively, Token Sales, let’s say:. What exactly is a trade including, what do investors get for their money, all of this is phrased in a very vague and limited to a Minimum. Legal safeguards will also be excluded in many cases from the Outset, when it comes to ICOs or Token Sales. Whether the investment will eventually lead to something? Who’s to know?

Security Tokens: Blockchain 3.0

In the meantime, many experts reported that the age of the Blockchain 3.0 is here. According to Bitcoin with the Blockchain (1.0) and Ethereum with the Blockchain (2.0) and its Smart Contracts, Blockchain (3.0) in the Form of Security Tokens in the wings. Security Tokens are different than previous token from ICOs is regulated by law in detail and, therefore, could be to normal stock exchange trading venues is traded – in, however, retain many of the advantages of traditional Token. Projects such as Polymath have just discovered this market for themselves and try a Standard, to develop similar to the ERC20 Standard for Security tokens.

Security Tokens were also recently in the Blockchain Summit in 2018 in London, a great theme.

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