The ICO is over. Last week, the SEC began a crackdown on fraudulently issued securities, with crypto projects Aragon and Paragon being fined $250,000 and ordered to refund investors. The cryptocurrency market is reeling from the news, with fears that many more projects may be in the crosshairs of the SEC due to a vaguely worded statement which suggested the SEC considers almost all ICO’s to be security offerings.
However, outside of America, a new legally compliant alternative to the ICO has appeared on the scene. An LCO (ListedCo. Coin Offering), is a coin offering by a listed company, bringing the transparency legally required of listed companies to the crypto space. The first such offering is from Ruden Holdings Co Ltd., a real estate company from Japan.
Sam Lee, Co-founder & CEO Blockchain Global and Renowned Global Blockchain Investor.
Ruden plans to put Japanese Real Estate on the blockchain, both boosting real estate liquidity and lowering the barrier of entry to foreign investors. Sam Lee, CEO of 300 million dollar investment fund, Blockchain Global stated: “Tokenisation is the future of traditional business. At this point it is an inevitable, due to the efficiencies and transparency it will bring. There is a tremendous amount of value waiting to be unlocked by LCO’s.”
YPB Group Ltd., an anti-counterfeit and customer engagement solutions provider, are the second listed company to announce an LCO, with an intention to drum up a $30 million investment. YPB group are under the supervision of the Australian regulators and will be limiting the offer to wholesale investors both domestically and internationally to stay compliant.
Clearly, LCO’s are just getting started, but if the trend of listed companies turning to cryptocurrencies continues, it could be the spark to ignite mass adoption of blockchain technology, and a new bull run to end the 2018 market crash.