How initial coin offerings can reinvent themselves

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

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

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.

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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'. Print Edition | Subscribe