ICO is a new era IPO
ICO stands for Initial Coin Offering, it is like a market to list (IPO) like a securities market with its own market and its own currency (virtual currency / token).
Speaking of listing, it is usually done at a cost like the Tokyo Stock Exchange, taking a huge cost and number of days.
Even if you are trying to list on a small scale in emerging markets such as Mothers, you will need at least a cost of over 100 million yen and over two years.
Now that business and technology are evolving, existing securities trading markets are becoming obsolete.
When a company realizes a good business model, ICO is beginning to pay attention as a method to securely finance funds quickly.
Cloud Funding + Virtual currency
ICO has properties like cloud funding + virtual currency.
When listing on the stock market, the company will raise funds in exchange for newly releasing its own shares. Investors own shares of companies in exchange for casting funds and expect incentives such as dividends and capital gains from them.
On the other hand, in the case of ICO, the company issues its own virtual currency (token), which is issued securely using block chain technology. And many issued tokens can be exchanged for bit coins etc, and a standard of monetary value to some extent is given.
Investors who purchase tokens can not possess management rights because they do not possess corporate stocks, but some incentives announced by companies listed on ICO in advance (like discounts on product services Things) can be received.
And if it is judged that the corporate value and business model after ICO will grow, the token itself will rise, price will fluctuate because investors are free to buy and sell like listed stocks.
Tokens and virtual currencies are regarded as “goods” rather than currency, and are valued and sold with it.
Originally, “currency” was used and developed to visualize value / credit capitalism, but in the era of new technology the material currency became obsolete, the value / credit itself is something, that is, a token It is being replaced by itself, and it is becoming distributed.
As a result, it is becoming possible to trade at a much faster rate and safely than traditional currency financing.
Companies that raise billions of yen in just a few hours
For example, a certain company raises nearly 30 billion yen in funds in just a few hours from ICO.
The number of giant enterprises specializing in one point called unicorns is increasing for current venture companies.
Like the sharing economy, the business model that is very easy to understand and simple (seems to appear) may grow quadratically as it is accepted from the market once.
For that reason, if investors expect that their technical approach will be accepted in the market and accelerate business expansion, ICO can quickly achieve huge amounts of funds procurement.
The method by which its business model and corporate value are judged by financial statements and third-party evaluation through audits has already lost the speed of the times.
More attractive to ICO investments themselves by investors’ ability to directly access the corporate value and business model that is more fundamental to third-party appraisals at ultra-low cost, making it possible for companies It also leads to an advantage.
It is a sense of speed that can not be done in the ordinary securities market, and ICO is also a platform that can handle safely even if huge amount of funds move at a stroke.
White Paper = Prospectus
In ICO, we treat documents called white papers like prospectuses and invite investors.
It lists the token to be listed, the business model of the enterprise, the technical advantage, the social value, etc. plan.
The number of issue tokens issued at ICO (something like the total number of shares issued at the time of listing) is also particularly important.
It is like selling new shares and stock split freely, so please fully check how long it will be issued and what kind of schedule will be in advance.
After ICO, investors purchase tokens at exchanges and are managed in a system called Wallet.
After ICO, companies will obtain funding according to the white paper and will carry out the business model.
The incentive may be returned to investors according to the white paper, or the business may fail.
Besides that, there are also a lot of fraud cases (also called SCAM COIN) that do not do anything by raising funds, and the latest attention is necessary.
Therefore, the white paper has a very important meaning.
It is necessary to thoroughly check whether the thing written there is reality, a value as a business model or the actual condition of issuer.
Nonetheless, it is true that even if the company’s ICO is taken for granted in a common business model that is frequently listed on the stock market, it is not possible to expect significant price increases or incentives even if safety is high.
Again, it can be said that the latest business model is suitable for financing utilizing the latest technology called ICO.
The essence of ICO is to list and value all the values
Ordinarily, in order for companies to raise funds, companies are evaluated at all angles, and their value is calculated by a third party organization.
However, the essence of ICO is the listing of “value itself”.
For example, not only enterprises but also “individuals” are listed, values are calculated for the individuals, listing of “goods” with value, “time”, “space”, everything is listed as derivatives It is thought that it becomes an image to be converted.
Originally it is impossible to buy and sell and the fixed things are traded into virtual currency · token by changing shape.
This is not bound to the box of business entity, it is also possible to optimize needs by extracting only valuable things and listing it, leading to more creation and growth of value more smoothly.
By replacing it with a toy with digitized strong security called “token” as if lubricant “currency” was born to buy and sell some kind of rights, further improvement of efficiency and surfacing of valuable things , It will be possible to excavate.
I think that there will be many things to be done ICO in the future, but since it is like a stock listing that took out more valuable things, it will be the opportunity to think more about where the essential value lies think.
And the process of listing, financing, and value growth is faster than listing on the stock market so far.
Currently, more than half of the world’s top market capitalization ranking companies are becoming IT technology companies. Many of them have grown quickly in short years. Indeed, ICO can say that the method of financing and investment that was in modern times.
Be careful that it is a high risk · high return
When conducting ICO investment, please pay attention to the nature of self-confidence investment behavior and the nature of investment target.
Because the ICO is not within the scope of the Financial Instruments and Exchange Act, the concept of investor protection is weak. From a company perspective, the cost of fund procurement drops significantly and the overwhelming sense of speed can be realized, so the business is advantageously advanced and the possibility of growing as a white paper increases, but from the viewpoint of investors , Risk is increased because the third party organization does not confirm the safety and future potential of the company.
Nonetheless, it is also true that the ICO market itself has only just begun, it will grow explosively in the future, and that a lot of money will flow in, so it is possible to expect a big return.
Please check the whitepaper firmly and check it while checking whether it is a real business.
※In our cryptographic currency based on block chain technology, it is described as virtual currency according to the official name of Japan.
※This content is not intended for solicitation of investment or advice. In addition, although this content is created based on materials and data judged to be reliable, we do not assume the obligation to investigate and confirm the accuracy and reliability of information.
※We do not conduct any business that requires permission of virtual currency exchange traders.