Simon Zenios and Co LLC, an International Corporate Law firm providing ICO legal services
There is no doubt that ICO is one of the most innovative and popular ways to raise funds for start-up businesses, but also projects of already well-established corporations. At Simon Zenios and Co LLC we make sure that we follow the updates in the area, so as to provide you with specialized legal advice and assist you in such steps.
Our team understands the process of running your ICO and is happy to assist and guide you during every step. Simon Zenios and Co LLC has been providing services to ICOs for long enough as to be able to be your trusty guide in your attempts.
The following article, written by the law firm explains the term ICO and the procedure followed to be involved in it.
What if all our childhood board games could be played in real life? ICO (Initial Coin Offering) is partially that, as you buy tokens and then play. You don’t really buy something that exists, but future company services or you just sell your tokens. Sounds fun, right?
The main question here is how someone is held accountable of providing the actual services. The answer is ICO Smart Contracts. An ICO Smart Contract is basically an agreement which ensures that the parties which purchase the token within a specific timeframe, will be able to sell it for a fixed price. The main reason which is presented as a motivator for buying ICO tokens is that the token’s price can rise quickly, with some impressive numbers already noted.
No matter how much we like to be treated as hip and up to date with the current trends, when we cannot see or touch something, we immediately question it. Why would I use it? How do I know that they will not scam me? I’d say that there is not really a guide on how to avoid being scammed but, there is actually one.
Generally, Crypto is characterized by anonymity, which is considered a privilege in most cases. In this case, though, there is the conflict of giving money to a stranger. So, rule number one is to get to know the founders of the company you are collaborating with. If the offer is too good to be true and somewhat unrealistic, be careful. If the percentage of the earnings appears to be much higher of what you have already seen, two are the possible scenarios; either there is a very good reason why this happens, or guess what? It’s a scam. Lastly, study the roadmap of the start-up. If it is a serious suggestion, then the guidelines will be clear cut. Avoid vague promises and statements. Seek for grounded reasoning.
Tokens are a different story from cryptocurrency for the following simple reason: tokens are not currency. There is no need to create a blockchain to issue tokens, which is the case with cryptocurrency. Contrastingly, you use an existing one. There are different kinds of tokens, though, which enable different activities.
The most popular type of tokens are the utility tokens. Utility tokens are used to buy different kinds of services. If the services become more popular, its tokens become consequently more expensive. However, if you managed to buy your tokens early, you will still be able to enjoy the services for the initial price. Initial Coin Offering (ICO) is the mediator in getting your cryptocurrency token on services.
Token-stocks or equity tokens are those ones which are issued when a start-up does not require crypto-technology. In the case of token-stocks, the token holders receive fixed commission and are also able to have a say in the company’s decisions.
Token credit as the name implies is a loan the holder gives to a start-up. Simple mathematics. You give X to receive X + something per cent.
And then there’s the token combo. Some tokens are both tokens and stocks. Some other times they belong to all three categories. The token type depends on its purpose. The purpose of the holder before buying it and the purpose of its issuing in the first place.
For any queries regarding any aspect of ICOs or blockchain companies in general, or any other legal matter, Contact below:
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Telephone: +357 24 023370