How initial coin offerings can reinvent themselves

Securitisation, loan procurement and staged financing are some methods ICO firms can explore to win investor confidence

While improved methods of raising capital for blockchain start-ups such as initial coin offering versions of securitisation, loan procurement and staged financing are still in their infancy, and examples of start-ups choosing these alternatives are l
While improved methods of raising capital for blockchain start-ups such as initial coin offering versions of securitisation, loan procurement and staged financing are still in their infancy, and examples of start-ups choosing these alternatives are limited, innovations like these represent the future of fund raising for blockchain start-ups. PHOTO: EPA-EFE
New: Gift this subscriber-only story to your friends and family

In late May, Singapore regulators clamped down on initial coin offerings (ICOs), ordering one issuer to stop the offering of its digital tokens and eight exchanges to cease trading these tokens.

Although the Monetary Authority of Singapore did not publicly name the issuer involved, it said the move was to halt the issuing of digital tokens that resembled securities or futures contracts, but which did not follow the legal procedures required of regular securities and futures.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Sunday Times on January 27, 2019, with the headline How initial coin offerings can reinvent themselves. Subscribe