Are ICOs all Set to Make a Comeback in the Near Future? Regulated Token Sales Making a Return
- The Russian government recently passed a law that seeks to allow startups to raise funds for their envisioned projects in a seamless manner.
- Bafin — Germany’s FSA — recently gave its seal of approval to a token sale event touted to worth $287 million.
Even though many experts believe that initial coin offerings (ICOs) have run their due course and are now literally dead, it seems as if the once-popular fundraising method is on its way to making a comeback. For example, the German Federal Financial Supervisory Authority, Bafin, recently approved of a large regulated token sale event for a local blockchain firm called Fundament Group — that is trying to raise a total of $278 million for its development efforts. In this regard, it is worth pointing out that both accredited, as well as retail investors, will be provided with an opportunity to take part in the aforementioned sale.
For those of our readers who may not be aware of this latest development, Fundament’s latest effort seeks to allow participants to invest in the construction of commercial properties using the firms native token offering — called ‘Real Estate Tokens’. Additionally, it also bears mentioning that the aforementioned ERC20 tokens will allow owners to procure handsome returns of up to 8% per annum.
The German startup will be facilitating its token sale event without the use of an intermediary entity — such as a bank — and will allow its customers to acquire the company’s native crypto offering using either bitcoin core, ethereum, U.S. dollars or euros.
To participate in the coin sale, investors will need to pass a stringent KYC test.
The U.S. Securities and Exchange Commission (SEC) recently approved of a coin offering worth $28 Million for a firm called Blockstack. Not only that, the regulatory body has also allowed streaming platform ‘Younow’ to distribute tokens worth $187 million to its content creators and users.
Russia also Warms up to Token Sale Events
Recently, the Russian government adopted a legal framework that is designed to make crowdfunding activities more streamlined within the nation’s borders. To be a bit more specific, we can see that the lower house of Russia’s parliament — Duma — recently voted in favor of a law that will allow crowdfunding to become much easier for tech enthusiasts and startup owners.
Additionally, we also need to mention that the above-stated bill will also look at regulating the Russian digital economy — including the nation’s altcoin sector and IPR (intellectual property) domain.
Last but not least, it appears as though initial coin offerings are still gradually decreasing in popularity while IEOs (Initial Exchange Offerings) are gaining more and more traction with each passing day.