The Future of ICOs? Security Token Offerings
▻https://hackernoon.com/the-future-of-icos-security-token-offerings-dbdffac9616b?source=rss----3
Distributed ledger technologies (DLTs) have given rise to the initial coin offering (ICO).An ICO is a fundraising mechanism used by DLT projects to raise capital, typically in the form of well-established crypto tokens like ether or bitcoin. In the first quarter of 2018 alone, US$6.3 billion was raised through ICOs.Fundamental to this new paradigm of fundraising is the token, and the tokenisation of digital and physical assets. There are different types of tokens, and many projects have raised funds by selling these tokens via an ICO.The most common tokens sold via an ICO are utility tokens, or tokens that will eventually become utility tokens once the funds raised have been used to create the infrastructure to support said tokens. A utility token has consumptive value, meaning it can be (...)