ICO: peculiarities, difficulties and promising jurisdictions

ICO: peculiarities, difficulties and promising jurisdictions

 

In the era of economic crisis, with the restrained access to financial sources, a lot of startups discovered ICO – cryptocurrency crowdfunding. Today it is taking place in many business spheres.

ICO today

Due to ICO, promising startups gather billions of dollars. Mainly, these are IT projects – blockchain, in particular. It can be explained with two reasons:

  • ICO deals with the production of cryptocurrency (tokens). It is more effective when a token appears to be a product part, for instance, general platform for decentralized services (in the way it was realized in Ethereum).
  • Understanding ICO mechanism requires certain knowledge in the sphere of high technologies. Cryptocurrency crowdfunding is a new trend. So, hiring workers that offer ICO conducting services is not enough. The market of these services has not yet developed and is hindered by the government incompetence. However, new offers are emerging step-by-step.

ICO conducting assistance

Blockchain projects are interested in providing startups with assistance. Thus, ICONOMI has launched the Cofound.it platform to support startups and establishment of their own ICO.

All huge ICO platforms provide technical support that ensures the necessary consulting and helps to launch the project.

However, technical implementation is the least of difficulties that follow ICO conducting. The legal aspect is a real problem. Currently, many Russian startup crowdsales take place abroad because there is no legal basis for them in Russia.

Switzerland or Singapore?

The USA, Switzerland, the UK, and Singapore are four world ‘cryptocurrency capitals’.

The USA possesses almost 40% of world ICO since this country is the motherland of startups. The projects emerging in the USA don’t change the jurisdiction. However, non-residents will face a lot of difficulties connected with license and permit acquiring.

Singapore and the UK are countries with a neutral-positive attitude towards cryptocurrency and crowdsales with its usage. However, even here foreign initiators of ICO face a severe bureaucracy.

Switzerland is an option preferred by Russian startups. This trend was partly initiated by Vitalik Buterin and his successful project Ethereum. However, there are fair advantages of the Swiss jurisdiction for ICO: it is devoid of the bureaucracy. Nowadays, this country is considered to be the ICO Mecca, Zug town in particular.

If you are aimed at ICO conducting, you should learn on your own the sphere of cryptocurrency and blockchain. This is the only way to reliably assess risks connected with your project and launch a successful crowdfunding company.

 

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