ICO Evolution: Tokenized Equity?

[existentialventures]

Hey everyone!

Over the past two years we've seen an explosion of interest in the crypto space even by the mainstream, largely thanks to Ethereum's unexpected (and unintended) killer app: the ICO.

The idea of course is simple:

- write a whitepaper,
- put up a website,
- do a bit of marketing,
- fork some existing (ERC20) token code,
- issue your own coin/token,

and then watch 'dat crypto money flow into your account! Easy peasy...

https://media.giphy.com/media/5fBH6z8aMV1RbA4FaSc/giphy.gif

Of course, where there's "free money", people will try and get some of their own. Today, the ICO space is more competitive than ever and people have trouble distinguishing good from bad players – let alone keeping up with the news of the latest coins, scams, and conflicts...

The professionalization of the space is quickly ramping up. Hedge fund managers are figuring out how to buy early and at a discount, pump the coin for the public sale, and then dump it on the rest of us.

[Side note: Idealism has largely been replaced by FOMO dynamics, although not completely – I myself feel the tug and pull of those twin motivations: greed & inspiration.]

Governments aren't far behind: they've started to investigate the potential for even more control. At the same time regulatory bodies across the globe are observing everything closely, ready to pounce – in some cases already providing guidance.

As a consequence, the ICO space is splitting into two distinct groups:

1. Scams & Extralegal Cash Grabs
2. Legally Secured Non-Equity Fundraising

But there's a third and obvious category missing. What about #3, Equity Tokens?

A number of company's like Equibit & CapchainX are working on them, but it remains to be seen whether the market will be as enthusiastic about them.

What do you think about tokenized equity?

[obizcoin]

Tokenized equity can be a more legit way of doing an ICO. It can bring both responsibility and accountability out of the management.
When the company issues shares inform of tokens, ICO participants actually own a bit of the company. Most ICOs issuing utility tokens today are failing to justify the use of tokens. The use mentioned in the whitepaper seems more of a push factor and there are already better alternatives available

Companies solving genuine problems and making a real difference in the economy can bring benefits to both investors as well as promoters. Investors can own a piece of business they believe in and promoters can raise capital to fund their idea.

Tokenisation can probably bring down the overall cost involved in raising funds via equity route compared to route chose via IPO. May be with regulations in place and ICO market becoming more mature, we will see more of sophisticated and legit equity ICOs with promising promoters.

[captain_blood]

Tokenized token is too good to be true, but in reality. It just a chokehold in government, we are now revolutionizing, and do you even think that having a utility token , an equity which generates tax is what this community builds?