Regulation has a purpose. It’s role is to protect investors from deceiving and fraudulent activity. Unfortunately, ICOs are not different. With the exponential growth of ICOs came also a rise in fraud and deceit. While the rich can afford losing some on these investments, small investors do not enjoy such luxury.
Regulation can also ensure that the latest hype is not just a growing bubble. Confidence is key in any financial market. People are more likely to invest their money (crypto or Fiat) if they feel protected. Maintaining the current momentum will require more people entering the crypto currency world. While Romantics believe in the decentralisation of the blockchain and hence cryptocurrencies, the new players on the market are more interested in the returns. To maintain the current influx of Fiat, thus supporting the crypto rally, confidence is vital.
Does my ICO need to be regulated?
Yes, all ICOs are subject to some level of regulation. Even though some tokens might not be considered as securities, there are other laws regulating token generating events. The moment a token takes the form of a security, this further complicates matters. Such security token Sale, will be subject to the same regulation as common securities.
What is the cost of regulating an ICO?
Regulating a Token offer is not as expensive as many think. It is also not as heavy. Most of the regulatory work would still be done by serious ICOs.
How Can Regulation actually assist my ICO?
While the buzzword out there is that ICOs are unregulated, regulation can actually help you stick out. With the amount of ICOs running many potentially great ICOs are not going to the attention they deserve. This is simply because your White Paper gives the same promises as the thousands being launched this month. Being one of the few regulated ICOs would surely get you much more organic marketing coverage. Do you know how much a proper ICO Marketing campaign costs? It will also give confidence to potential investors to take the leap and invest in your regulated ICO.
E&S Group can assist you in setting up a regulated ICO for your start-up to raise required financing. Therefore, contact us for more information on regulated ICOs.