Swace ICO (SWA Token): Social Gaming Rewards Blockchain?
Budding companies, which decide to hold an ICO face a serious dilemma of what token they will issue. They also face the problem of trying to remain on the right side of regulation that is changing all the time. It is especially so when a company tries to go international. This is because legislation is different all over the world.
The Swace Solution
Swace developers saw all these issues and decided to come up with a solution. The solution is legal according to EU and Lithuanian regulation. Normally, there are two types of tokens: utility and security. A security token is a document that confers certain ownership rights to the holder. In essence, it is an advanced type of IOU.
The other type of token is the utility token. These tokens offer access to a service via the blockchain. They give holders a defined utility inside the network. In essence, a utility token is an advanced coupon for future services. Most people take part in utility token ICOs in the hope that the value will rise.
How Swace Social Gaming Rewards Blockchain Works
For some, none of these two tokens is the right choice. If your preference is in between these two, then the Swace solution is perfect. They have developed something called the payment token.
The SWA token is not a security or a utility. When you take part in the Swace ICO, you will not gain part ownership of the Swace Company. Besides that, there is no promise of getting future services. Instead, you will be getting a sort of locally applied currency. When the Swace project launches in May, you will have the in-app wallet as a way to purchase goods and services.
In the app ecosystem, users will be able to pay to participate in games. They will also be able to purchase goods. However, this does not mean you are purchasing services from the company. It is kind of exchanging money in a foreign nation so that you can buy goods. When you give your Euros and get rubbles or rupees in return, you expect nothing but money. You simply place the coins in your wallet and choose how you will spend them. This is the way a payment token works.
Swace SWA Token ICO Details
Swace will be holding an ICO in three stages for their SWA token. Their roadmap states this is scheduled for Q2 of 2018 but the dates have not yet been announced.
Allocation Of Funds
- Advisors & Partners: 3%
- Bounty, Airdrop & Test Reward: 7%
- Founder & Team: 12%
- Community Growth: 23%
- Public: 55%
Why Swace Chose Lithuania
More teams are choosing Lithuania to conduct token generation event. Most have realized that they do not need to go abroad for these events. The authorities in Lithuania are willing and able to offer consultation on crypto events. Besides that, the blockchain community is strong and supportive.
In terms of cost, Lithuania is also quite affordable compared to Switzerland or Germany for instance. Swace has many benefits. They have already gotten a letter from the central bank showing that SWA tokens are not securities. Besides that, the developers of this project have met with tax authorities to consult on various taxation issues. For purposes of regulation, the SWA token is a voucher that lets the sellers, and the buyers have a reasonable expectation of their obligations and rights.