ICO or Initial Coin Offering is a digital token given to people who can act as a utility of cryptocurrency. It is the process of raising funds. When a company needs finance to create a new cryptocurrency coin or app involving block chain technology, it launches a digital token called ICO. Regulators or innovators are the two prominent persons who’re going to control the future of ICOs, which is because cryptocurrency is still a new technology and needs a lot of regulations in its usage.
Curious investors can buy these digital tokens in the name of a new cryptocurrency that is going to be launched by the company. They also become liable to the rights of this newly launched cryptocurrency. Since cryptocurrency is decentralized in nature and eliminates any form of central authority, some countries put a lot of regulations on the use of cryptocurrencies because it can be used for illegal purposes like drug sales, etc. According to the latest ico news, some of the countries like China, Russia, Vietnam, Ecuador, Bolivia, and Columbia have banned the usage of ICO. This article will provide you with information on who will be going to control the future of ICOs of cryptocurrency between the regulators or innovators.
How Regulator Will Impact?
ICOs have experienced a lot of changes since its launch, and most of these changes come from the side of the regulator. The independence of the ICO market lies in the perception of the regulator. If the regulator perceives ICO as less than just security offerings, it poses a threat to the independence of ICO’s market. This independence, the regulator effect is more of a qualitative nature, i.e. how ICOs encourage companies to apply them in their business model rather than the quantitative manner like amount and ICOs numbers raised.
The decentralized nature of cryptocurrency is not a sufficient checkmark for a free hand regulatory attitude.
A form of governance that is decentralized in nature can most likely destroy the management of some technology rather than providing it with any benefit. Some of the projects that are in their initial stages can be disordered and lose their progress if not monitored centrally.
The decentralized nature of the blockchain network itself is the main factor that avoids any central authority on it, so the ones who are are attempting to implement decentralization too early should not be harmed.
Influence From The Side Of Innovators
ICO is the digital token that acts as a blockchain economy innovative model. The decentralized feature of a token is essential, but all the tokens can gain the status of security. The cryptocurrency industry will be harmed if these ICOs are directly utilized as securities when the primary ownership intent is one of usage, not profits. Giving a token birthright of being security at birth evolutions can stop its flow, especially when it comes to both developers and investors who want to implement cryptocurrency.
Innovators can still find multiple approaches to protect the consumer if there is some patience in the still-development stage of blockchain technology. Nothing will get innovated if it will be restricted by some form of rules and regulations. An ICO is still in its first journey and is not some form of exploitation. Getting into the real market takes time in tech startups.
Countries like China have lots of rules and regulations, and they will not let any new technology like blockchain to be used as they strict monitoring process on inflows without having an idea whether it will be valuable and ethical in the future.
Making an ICO as an alternative of funding system is complex and will require some form of trial and errors by the regulators. Also, The digital token or ICO still needs to prove its utility and adoption; otherwise, the people owing it will be in loss.
Conclusion
In this article of who is going to control ICOs, we have seen that they have gained a lot of popularity these days. It is a form of digital token that is given to the investors in the name of some new cryptocurrency launched by a company. Lots of countries like China, Russia, Vietnam are putting rules and regulations as its usage due to its decentralized nature which in turn is killing the future of ico. Still, in countries like the USA and the European Union, the future of block chain is fruitful. Finally, the regulatory authorities should keep their old lenses and let the innovation be beneficial for the people.
