Indiegogo, a leading crowdfunding platform, announced early support hosting or token-ICO.
Popular crowdfunding platform Indiegogo, which since its inception in 2007, climbed to second in the world in the amount of the funds raised, has announced the market entry of host tokens, also known as initial placement of coins (ICO).
On the website of the company explains that with the help of the newly introduced service interested in placing tokens will be able “to access a large number of securities and compliance opportunities through the sale of tokens through the registered broker and official investment portal [of the regulatory authority in the financial industry]”.
If necessary, Indiegogo will also help clients to register tokens as securities. This represents a significant improvement in compliance, given the recent admonition of the Chairman of the SEC, Jay Clayton that the activities of companies trading in retail tokens as the securities should be governed by the law on securities.
On 11 December the Commission SEC filed a cease-and-desist action against the California startup, which violated the same standard.
Indiegogo will also support the sale of the service token, although the co-founder of Indiegogo Slava Rubin argues that under the definition of securities gets the majority of the tokens specified in the platform.
Crowdfunding the company has also announced its intention to operate several other businesses, including law firms, to check the technical documentation of the clients. These documents are often drafted using vague and not specific language that allows unscrupulous firms to cheat investors, presenting in a false light of their own organization and services. In addition, the company Indiegogo will introduce participants to “accredited investors,” “transfer services money” services awareness customers and prevent money-laundering.
The fundraiser will be able to participate from more than 200 countries. The contributions of small investors will be limited by factors including profit and equity, and according to U.S. Law, on the quick launch startups 2012, the amount of such investments may not exceed 1 070 000$.
In an article in the newspaper “new York times” of December 12, stated that these restrictions will not touch the “qualified investors”, but it is not clear what restrictions will be imposed on institutional investors.
This innovation, which could significantly change the situation with the placement of tokens in the United States, raises a number of questions. At the moment the company Indiegogo have not answered the question of journalists, whether it will accept contributions in the cryptocurrency.
Assuming that this does not happen, this insistence on Fiat money implies certain requirements on disclosure of information, including the limit of contributions. The registration of these tokens, the securities will significantly limit the term of their sale.
In addition, the company Indiegogo takes five percent of the amount collected for each project, although the company has not yet announced whether to apply this rule to embed the tokens. Given these clear costs and limitations, it is not clear how innovation Indiegogo will affect the placement of tokens.
Company engaged in sales, will tumble down the shaft to the platform or prefer not to contact her? If the firm will be able to capture a larger share of the U.S. market, whether other companies to place tokens in the offshore to bypass restrictions on fundraising that apply to sales on Indiegogo?
Reportedly, Rubin says that the company hopes to “make ICO popular”, and the future investment for bloccano. The first client using the service at the location of the token, the company will begin fundraising this week.