Swissquote Bank Enters ICO Market By Offering Options For More Traditional Clients
Swissquote, a Swiss online financial services provider, has decided to insert itself in the crypto business market by offering Initial Coin Offerings (ICOs) in custodial services while offering traditional banking services. This is part of an initiative to offer crypto services to more traditional clients which are interested in security and compliance.
The online bank has offered many crypto services back in 2016 when it first allowed people to purchase tokens. Now, it starting to sell ICO tokens from industrial diamond manufacturer LakeDiamond, which produces diamonds.
According to its CEO Mark Buerki, consumers do not need to understand the blockchain technology to invest anymore, they can just use it via companies like Swissquote which understand everything so they won’t have to do it. This way, the company is aiming to upgrade the services in this area.
Now, users will be able to purchase ICO tokens directly using their online accounts and the bank will hold these tokens in a separate wallet for the clients. The main argument for doing this is that the client will not even need his own wallet to do it, so it could streamline the process of buying tokens.
By buying directly with the companies and storing the assets for the clients, Swissquote intends to bridge the gap between more traditional investors (accredited or not) and this upcoming industry. All the sale of tokens will be done via the bank and will be scam-free.
The Current State Of The ICO Industry
Initial Coin Offerings are very similar to the older and more traditional Initial Public Offerings (IPOs), the main difference is that they sell tokens instead of shares of the company’s public stock and they are considerably less regulated by governments around the world.
Also, you generally need a crypto wallet to invest in this kind of business while IPOs generally need you to be accredited investors, so the barriers are lower. However, you need to understand the blockchain and its market in order to enter the market, so the company is basically removing this barrier.
ICOs are almighty during 2017 but they have seen a steady decline during 2018. Why? Mostly because of the bear market that has made most of the tokens fall in price and because many tokens are now worth considerably less than their initial price.
Data released by Diar has shown that September has been one of the worst months in the crypto markets and companies like Bancor and Kin have plummeted. However, some ICOs are still somewhat popular, it seems, and companies like Russia’s Sberbank, the largest state-owned bank in the country, have been establishing legislation to make ICOs more common and secure.
While this does not mean that the market is necessarily doomed, it has created issues that have diminished the trust of the investors in this new market. This is part of why Swissquote’s idea has potential, as it might make partnerships with companies that will help the company to make ICOs most trustworthy.
About LakeDiamond And Swissquote
LakeDiamond, the first ICO being offered by the company, is issuing about $60 million USD worth in tokens for its clients. The CEO of the Swiss company, Marc Burki, has affirmed that the company is focused on democratizing finances and in offering services that are simple and can be accessed by any person.
To be able to purchase the tokens during the pre-sale, you will have to buy at least 60 LKDs, which can be bought with at least 33 CHF, the Swiss fiat currency.
LakeDiamond’s CEO Pascal Gallo has affirmed that the company will use cutting-edge technology to create ultra-pure diamonds and it is seeking to accelerate its growth by using Swissquote’s products.