ICO's IN TURMOIL, WE HAVE A SOLUTION...

in news •  5 months ago  (edited)


Gone are the days when a flashy website and a vaguely worded white paper are going to attract investors. With the bear market dragging investment values down by more than ninety percent, the once busy cryptocurrency forums are a ghost town. The majority of investors are feeling burnt by the economic losses and let down by the empty promises of scam ICO’s (Bitconneeeeect!). I'm pretty sure that most of you have experience or know someone affected by scammers. If you do then please share with us your experience and what did you learn from it? What's more, the governments of the world are circling like vultures over the remains, don't you agree?

 

Whilst ICO’s are languishing on life support, a new alternative has appeared. Established companies have taken note of the potential to unlock new forms of value and revenue streams through blockchain technologies and tokenization. First coined and developed by Sam Lee (on the left in the photo), CEO of Blockchain Global, and myself - Daniel Bateman (on the right in the photo) from Blockshine Technology, the LCO (ListedCo. Coin Offering) has officially arrived.

 

Traditional listed companies are finally mobilising and entering the crypto space, with  Japanese real estate company Ruden Holdings Co Ltd. being the first to issue a token. Partnered with technical, legal & investment experts, Blockshine, the token issuance was greenlighted by the Japanese SEC, paving the way for other future projects. 

  

An LCO combines the advantages of potential massive profits during the next bull market, with the proven performance and transparency required by listed companies. Legally obligated to provide information on company finances to shareholders, listed companies don’t come with the risk of ICO organisers taking the money raised and permanently retiring to the Bahamas. In fact, is expected that LCO’s will help to unlock the fourth dimension of the financial markets, the other three being cash, debt and equity, through creating smart contract powered utility tokens that represent a new value that creates real wealth. 

Tokenization is the future of the business process and there is reason to believe that financial systems will be more efficient and compliant. Together with a global consortium of the best and brightest minds in blockchain and beyond, we can provide the gateway for listed companies to enter the crypto world.


Do you fine steemians have any experience with LCO's? If you do, do you think it will be the big thing in 2019? And why? 

I welcome all of your opinions. I love to read and reply to all comments! Thank you Steemians!

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It took me ages to get my first few dollars in crypto, it was litecoin and I lost it on a telegram investment promise. I have entered a lot of bounties, one of which is qiibee which has a wallet for reward tokens and coins.

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Dear @everyone
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Thank you to everyone who decided to visit this post and share your view (or perhaps learn something) on this particulary interesting subcject: future of LCO (Listed Coin Offering)

How many of you ever heard about LCO's? Guys from @blockshine have some great points that this can be huge topic in upcoming year or two.

Personally I've been mostly focused on STO's (Security Token Offering) which I believed will be next big thing.

Since many you have solid knowledge about those topics, I would love to ask about your view on that topic. In particular if you could share your knowledge and opinion related to LCO.

I read and reply to every valuable comment.

Yours
Piotr

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Since we are invited to share our scam stories, I bought Infinite coin a year ago. It is now coin #1,895. When it got kicked off my exchange my holding literally disappeared. Oh well, lesson learned. My new rule, do not buy coins below top 100. There are way too many scams. Trying to find the next big thing in ICO’s is not finding a needle in a haystack. It is trying to find a needle in a stack of other needles. The LCO concept is interesting because, if I understand it correctly, it will be a synergy between traditional investing concepts only using the new blockchain platform. Evolution if you will. Uh oh, technology overload alert. Dam, my head is spinning.

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Hello @clayrawlings thank you for resteeming, its always great to connect with other steemians on the platform. Yes I am sorry to hear you went through that experience. Thats the thing there are still 10% solid projects out there they have real utility of value and are profitable.

LCO's are the future and with Ruden we already have a great use case in place. Also check out YPB the second LCO in the space, regulated in Australia.

I will be sure to follow you and upvote your future posts!

Could this model work in your country? Why/why not?

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This model could work in the USA but it will clearly come under, and must comply with, SEC regulations. The entire idea behind mosy crypto followers is to escape government regs. This is where the hostility may arise.

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@clayrawlings exactly, the key that it is fully regulated and complies with regulations.

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Dear @clayrawlings

When it got kicked off my exchange my holding literally disappeared.

What do you mean disappeared?

The LCO concept is interesting because, if I understand it correctly, it will be a synergy between traditional investing concepts only using the new blockchain platform.

Would you be able to point out what is the difference between LCO and STO (security token offerings)? STO is clear and simple but I'm kind of failing to understand LCO so far.

Yours
Piotr

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I mean it literally disappeared. The exchange said it would no longer support the coin and I needed to move to another exchange. When I tried to transfer the coin to another exchange it just disappeared right before my eyes. I could not find it in my history. It was like it never existed. It was not enough money to waste any more time fooling with it. I transferred every other coin I had on that exchange and never went back. Lesson learned. As for difference between LCO and STO, that is above my pay grade.

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'Trying to find the next big thing in ICO’s is not finding a needle in a haystack. It is trying to find a needle in a stack of other needles'. ouch!
What a perfect description and I am sorry to hear about your lost coins.

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Indeed @straighttalk I also like this comparison :)

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I'm still too new to thee sector to have a strong opinion on much of it.. but thank you for directing me this way..

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Thanks for dropping by @darrenfj and for being so supportive.

ps.
Friend of mine is looking for crypto writers and social media marketers. Perhaps you or someone you know would be interested in such a position (check out my latest post).

Yours
Piotr

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thanks for the tips!

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Thanks a lot for guiding e here @crypto.piotr I had never heard of LCOs til this post how interesting lots more researching to do lol!

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Thank you @steemingmark, its a great concept, loads of articles online, if you have any questions, feel free to ask.

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No problem

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Im always happy to help @steemingmark and grateful for your support :) I love how responsive you are buddy

Yours, Piotr

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No problem mate

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Thanks for the support @steemingmark!

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No problem @crypto.piotr is a mutual friend

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Interesting conversation going on .Makes me feel a little crypto dumb. I clearly need to improve my crypto lingo. Thanks @crypto.piotr for letting me in on this.

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Hahaha @naijauser

Makes me feel a little crypto dumb. I clearly need to improve my crypto lingo.

I feel that way quite often too to tell you the truth :) I just dont admit it laudly hahaha :)

Yours
Piotr

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Hey Piotr, LCO, i have never heard of it, i need to dive in some more .... but im a little sceptical ... it sounds to me more like established companies trying to riding the crypto wave. Also, what are these new lco backed by? Just the name of the ‘established’ company? And if these established companies need new capital, how good are they doing irl? Those companies probably wont do an exit scam so quick, but when an established company needs a new revenue stream, that often means they are not really doing so well ... so what happens to your lco coin, if said company goes bankrupt ... yeah your lco is just as worthless as any not functioning crypto ...and thats why, imo STO is one of the next big things. Because it is backed by something, ... furthermore ... isnt the kodak coin, released last year the same concept? oh and btw ... i’m going to start a movement that will change the world when the manifesto is there ... i might need your help

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Hello @elektropunkz thank you for your comment, yea please delve in more, lots of content out there on LCO's. The LCO's Blockshine have worked to we have invested in so they are not in for a quick buck, we want them to be sustainable. Kodak isn't the same because it wasn't regulated. LCO's are backed by a listed company. Happy to answer any questions you have?

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hi @elektropunkz, @blockshine

it sounds to me more like established companies trying to riding the crypto wave

We do actually need established companies getting involved. It's hard to say that they are trying to ride the crypto wave, since this wave died a long time ago.

what are these new lco backed by? Just the name of the ‘established’ company

From my understanding both LCO and STO will offer some sort of investors-protection (will be backed by assets). Am I right @blockshine?

Buying part of ownership is a huge change. That's something that ICO has been lacking.

Those companies probably wont do an exit scam so quick, but when an established company needs a new revenue stream, that often means they are not really doing so well ...

Not really. Your logic would means that all those companies on stock market are not doing so well. Companies are looking for investors to expand. That's pretty much the way it is most of the time. Almost always.

and thats why, imo STO is one of the next big things. Because it is backed by something

Finally we agree on something haha :)

i’m going to start a movement that will change the world when the manifesto is there ... i might need your help

What do you mean? How can I be of any help? Drop me an email please: [email protected]

Yours
Piotr

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I dare to say, my mind is damaged (long story) but still very creative and decently working, but ... Yesterday i stept with the wrong foot out of bed, those days i am not thinking clear, and often a little bit too sceptical. It’s something that i am working on. At least i’m trying too.

I saved your mail adress, so when i have my igbs manifesto as good as ready and then i will get back to you ... okay?

Last thing i like to add ... about riding the blockchain wave, you also know the wave will be going up again once the next bull market starts gaining traction in the mainstream

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First time hearing about LCO will have to look into it and i think STO is gonna be better then ico

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Hi @khussan thanks for taking the time to read and resteem this post, I have followed you back on Steemit! Great to connect with new people in the industry. I hope to see more content from you soon! Could the LCO model work in your country?

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Thanks for the follow and not much Maldivians are into crypto and there is only one exchange with limited types of crypto and limited supply so i do not know if LCO model could work here

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And this exchange is called what and is it centralised?

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It is called DhiCoins i think and decentralised

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Thank you I will check them out

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No scam experiences if it comes to crypto currencies, just a big lost (of the investment I could afford me). It is not quite clear/I can not paint a picture at it what "great" change it will bring. To be honest I do not believe anything will change this year. It feels to me we are in a period of keep on trying to keep both feet on the ground.

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Hello @wakeupkitty thank you for your comment I think Blockchain will go from strength to strength. With crypto the solid ICO projects, STO's and LCO's will be at the forefront of the narrative.

What do you think of LCO's?

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Hi @wakeupkitty

To be honest I do not believe anything will change this year. It feels to me we are in a period of keep on trying to keep both feet on the ground.

We're clearly on the same page here. I also think that 2019 will be very boring for majority of investors and market will be moving sideways most of the time. With lack of interests from mass media and lack of trust.

Yours
Piotr

Actually, I don't know about these things. I came here to increase my knowledge and to learn about the topic.
But it seems that I should have some basic knowledge about ICO, STO etc.

Actually, I'm totally new to even cryptocurrency because it's ban in our country. But I bought some steems because of my friend. He told me it's just like online money that varies its value and if it'll go high then we can earn some profit.
I'm so sorry I couldn't give any review to the topic or couldn't add something valuable.

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Cheers @numanbutt this is the place to be the increase your knowledge on blockchain and crypto. Blockchain technology is about trust and bringing people on board to use the technology through educating them. Do a bit more digging on LCO's, very interesting topic to explore and discuss...
Thank you for your upvote and resteem!

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your from India? ...

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No, from Pakistan

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crypto is banned there...you mean its declared as illegal?

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Yes. It's banned here. @mintymile

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I am from India and its no declared illegal here, but little ban is there I can give you links in another comment that you can read about crypto.

https://captainaltcoin.com/
https://coincentral.com

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Yeah sure @mintymile

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Yeah sure @mintymile

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Hi @numanbutt

Actually, I'm totally new to even cryptocurrency because it's ban in our country.

do you mind sharing with us where're from? Lahore is capital of Pakistan, right? Is crypto really banned in Pakistan? Are authorities very strict about it?

Yours
Piotr

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Yes, I'm from Lahore and Islamabad is the capital of Pakistan (but Lahore is considered as most progressed city).
Yes, crypto is banned in Pakistan but there are still some people who are traders. So, strictness is not that much.
My main point is that people even don't know about it.
I heard about bitcoin during summer vacation of 2017 but ignored it.
Then I came across the plateform of steemit and learnd that there are some voting bots. But I didn't had money to invest so I talked to one of my friend who I knew was involved in crypto trading. So I bought some from him (almost september 2018).
That's whole story.
As far as strictness is concern, there are a lot of things that are not allowed but no strict order from government.

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Hi @numanbutt

Thank you for taking the time to write your explanation.

Yes, crypto is banned in Pakistan but there are still some people who are traders.

when did your administration banned crypto? Sometime lately? Like 2017-2018? Or earlier?

My main point is that people even don't know about it.

Make sense. Indeed you're one of very few representatives from Pakistan here on Steemit.

Yours
Piotr

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Last week I saw on some news site that the Indian banks had written to some of their customers saying we believe you are trading in cryptocurrencies and we are going to freeze your accounts! I didn't save the link.

This is very interesting from a technical perspective! I think that in markets where traditional financial products have had limited penetration, such as Latin America, this sort of LCO set-up could allow both businesses and technically savvy investors to 'leap-frog' over entrenched interests and, in some cases, government regulations, likely to the benefit of all parties involved.

I am very interested in learning more! According to my interpretation of the law here, this model would work for a company in Colombia.1

The financial superintendent would regulate these companies and since they already operate under these regulations, all of the relevant information is already transparent.

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Hi @ecoinstant

I just came across to your reply. I followed the link you posted which took me to an article written by a well known law firm in Colombia.

What i know is that financial superintendent only regulates financial institutions. Non-financial companies are out of their scope, therefore are "free" to operate with cryptos, under the limitations of other laws, and probably without being transparent, unless they get supervised/regulated by superintendent of societies.

I'm a not a law expert, but I think there is a lot space for interpretation and misunderstanding. Sometimes Colombian laws are tricky so is better to look for an advisor in case you want to run a business related to crypto, like @blockshine

On the other hand, i feel Colombian banks don't like cryptos and can close your bank account, as happened with other people.

Hope this helps!!

I also want to learn more in the subject

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Thank you for this great response! Small steps are going to be very important to the first movers in Colombia and Latin America in general.

We do know that 'unregulated' freedom is not the normal state of the world, but until some companies start working I don't think any Colombian government is going to make moves to regulate or 'deal with' something that is not yet happening in the country. So it must be a company or a group that take on the challenge.

As you say, misunderstanding is such an important keyword in this space, because from my view there is not only quite a bit of misunderstanding around criptodivisas and blockchain, there are many levels of misunderstandings!

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Thank you @ecoinstant I agree with all your points . Interested to hear more about the company in Colombia, please elaborate?

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I don't know of any company in Colombia that is doing an LCO, but I do think that the law would allow it. As I responded to @caribehub's great comment, I think that in Latin America in general, the private sector is going to have to take a tentative lead in the implementation of these new technologies, as the governments leave open spaces precisely because they are likely unwilling to take missteps trying to regulate activities and markets that are only beginning to take form in their territory.

Hey @blockshine, great post... I was recommended to it by @crypto.piotr :D


In terms of scam stories, it doesn't have to do with an ICO, but more so with pyramid schemes that have taken place around the area I live in. There was two brothers who decided to start a pyramid scheme by getting all my friends to buy into bitcoin and other start up ICO's with there references and told them if they reached certain levels of referrals, they would get a percentage increase in there profits...

But obviously, it all didn't work out and a lot of people lost a lot of money because at the time, Bitcoin fell by a big margin. This really got a few of my friends that took part in this angry, because they were gullible and wanted an easy way to make money.

Luckily, I was able to talk a few of them out of it at the beginning, saying that they were at the bottom of the chain and will end of making a loss.


With regards to LCO's and STO's, I will definitely have a look at them, it seems like it would be a worthwhile venture :D

Regards
@shadown99

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Thanks @shadown99, the LCO is something we are aspiring towards making a broad reality and we are working hard on it. Brings us great confidence to see so many people agreeing with this shift in the market from ICO to LCO which is desperately needed. Atleast with some regulation people's hope will be restored.

How long do you think it will take for the traditional markets to get on board and start listing their LCOs?

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Thank you for sharing your story @shadown99

Great comment buddy
Yours, Piotr

Yes we saw a boom with the ICO market, did many of those projects see the light of day? no. Did we lose money? yes? Did we gain invaluable lessions for the future? Yes!

I think STO's, ILO's and LCO's are great medium-term solutions to bring in both private and institutional money into blockchain but this should not be where the money comes from. The money needs to come from providing services of value not creating more speculative assets on the blockchain

I think this is a great step into getting money in and starting to take accountability for projects and also hopefully take power away from centralised exchanges. We havnt figured out this blockchain thing yet but once we do and the first few companies actually producing real world value come to fruition its going to be a gold rush like we've never seen before

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Agreed, @chekohler. The blockchain projects that come from the listed companies will have to provide something of value. Personally I think that they will be more likely to create something truly valuable since they have a brand name to protect and shareholders long term interests need to be protected.

How do you think Blockchain will shape the future of financial markets?

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To be honest in the beginning I think it’s more of a gimmick than anything else! Companies are seeing hey this blockchain thing is getting funding let’s get in on it, but the true test is going to be can they deal with the transparency investors will have now and secondly how much of the “blockchain” concept will be used? Will it be decentralized? Will it be an open system? Will the tokens be pegged to assets of the company?

There’s just too many questions I think this will be another experimental phase where each company has their own take on this that they feel works to their favour

I’m not fully convinced but if it can bring more money and confidence into crypto it’s for the greater good I suppose

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It's very true that it's still in an experimental phase @chekohler, we will need to wait and see how companies will want to issue their tokens and in what form. I believe trading some transparency of the company for some regulation might be something worth debating.

Great stuff, followed you.

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Great comment @chekohler

Yes we saw a boom with the ICO market, did many of those projects see the light of day? no. Did we lose money? yes? Did we gain invaluable lessions for the future? Yes!

I wonder what is your lesson?

My lesson is, that mass media brought to much attention and speculative investors into technology and market which was just slowly developing.

I think STO's, ILO's and LCO's are great medium-term solutions to bring in both private and institutional money into blockchain but this should not be where the money comes from. The money needs to come from providing services of value not creating more speculative assets on the blockchain

To some degree I think you're right. However, I think people are quite divided with their opinions and I believe that demand should be coming from all possible directions.

Again: great comment
Piotr

  ·  5 months ago (edited)

Although I think LCO are an improvement over ICO, I think the concept arrives too late. The investors are so burn out after the ICO bubble that this won´t work.

it's time for the ICO´s to die. A massive purge of crpytocurrencies and tokens is necessary before the market starts to recover. Only very few dozens can survive.

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That's a great point @ropaga

It will take so much time to recover investors trust. LCO would have to disconnect themselfs fully from crypto and ICOs. And they cannot do that.

Cheers
Piotr

So much is happening in the world of Crypto that its hard to keep up. With my limited knowledge I cannot give my opinion on this but I'm always interested in the views of others. So will keep a close eye on your posts in the future. One currency I do like the look of however is stablecoin

99bitcoins is my go to for good simple advise.

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Thanks for the post and I agree fully with you. It's a new revolution in both money and communications and innovations are happening daily. Please follow us and join us on this journey so you will be in line with everything that's happening.

Stablecoins are very interesting and useful indeed, especially as safe havens from market fluctuations.

Have a nice day too

Governments are starting to decide to allow ERC20s to represent securities, its a simple process of tokenizing a security.

Ohio has began recognizing that tokenized corporate shares can represent ownership of shares in a corporation. This means that Aragon would be recognized as a legitimate organization in Ohio. That's pretty cool.

I would say that it is exciting for the future price of Ethereum for sure. Especially when derivatives end up going on Ethereum.

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Hi @hobo.media thank you for your comments. STO's have their merits there is no doubt about it and my company is developing STO exchanges and helping these tokens now. However there also have to be an alternative regulated solution that brings in the traditional industries, that is the LCO.

It's great to hear some States in the USA such as Ohio piecemeal recognising this great crypto technology. Ethereum definitely needs a boost!

Thank you for resteeming, I have followed your page and upvoted!

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Dear @hobo.media

Would you be able to point out what is the difference between LCO and STO (security token offerings)? STO is clear and simple but I'm kind of failing to understand LCO so far.

Governments are starting to decide to allow ERC20s to represent securities, its a simple process of tokenizing a security.

Seriously? I cannot imagine almost any ICO launched on ERC20 as a security.

Yours
Piotr

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Honestly, I'm not sure I've heard of LCO before this post, but in my view it is the same as a STO or possibly a SEC "listed" coin offering, opposed to the unregulated ones. But a listed coin offering is only a tokenized security that is going through an IPO. Whereas a STO would just be a record of a security put on the blockchain. Apple stocks have already been put on Ethereum as a tokenized security, its nothing special, just a token representing individual Apple stocks.

This is a great development for securities because currently securities are "stateless" in technical terms, while putting the securities on Ethereum gives them "state" which is better. An article by an Ethereum developer pointed out this key value of stated objects vs. stateless and the value it has for the average person.

LCO this is the first time I heard about it... Interesting concept

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I got this link from @crypto.piotr but have no experience with LCOs.

I find this an interesting concept in that it's like buying shares, but without the Stockbroker if the Token is sold directly in exchange for any major fiat currency.

I remember in the '70s there were still listed Corporations that would also sell shares directly, the drawback being that you had to travel there cash in hand. The listed company coin offering provides the opportunity to take this concept global.

The advantages I see is a Token initially based on the core business of the issuer and it's value possibly less dependent on speculators if managed properly. If the Token then takes off on it's own, it can be added to the core business of the company.

Will it take off in 2019? Maybe there is almost no alternative; just remember that in the current markets, value evaporates, at least from the perspective of potential buyers. If the Token can be kept out of derivatives trading it may be a confidence builder from my personal perspective, even if that would somewhat limit it's potential gains but also losses in the markets.

I look forward to seeing how this works out. Thank you for your time, greetings!

Onno.

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Thank you @onnovocks for the lovely post, and so far Ruden has taken off, check out what happened after it announced it was developing a token on the Japanese stock exchange...
And yes this will be kept out of derivatives...
Could this work in your country?

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I currently live in the Netherlands and have no in-depth knowledge of how things are structured here. The folks at bitonic.nl may have some answers or might know where to get the answer to your question since they are one of the few exchanges who trade BTC direct for Euros. (they only handle BTC, but this is where I would start my search)

"Kept out of derivatives" See, ..now I'm interested :)

Cheers!

Not too familiar but after @crypto.piotr sent this to us I dug in a little bit.

I believe LCO's may be a potential replacement for ICO's only in terms of issuing ownership tokens i.e. securities. When we talk about ICO's in general, utility tokens still are a big use for them. And it isn't fair to force these private companies to be so transparent (unless we are buying a piece of the ownership).

Nevertheless, I would like to see much for development in terms of network infrastructure and security before I would truly put my money to work in a security offering. I agree when you say tokenization is the future, but I also think we need to take baby steps. Rather than look for an alternative immediately, let us find ways to make sure there are companies that actually will put our capital to use for a good purpose.

Security tokens have a bright future, but we cannot immediately run over to that future. To have a prosperous future, we must focus on developing the present.

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To issue securities as tokens could have a competitive advantage in a market with low penetration of financial products.

Your point about finding companies that will put capital to use for a good purpose is well taken.

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I agree. Tokenizing ownership will indeed revolutionise markets. It will help people in areas of low penetration gain access to opportunities.

My point was in essence; we have to focus on developing these systems to a better extent. Our focus cannot be to shift from dematerialized shares to tokenized shares in a short span. By focusing on developing the infrastructure to issue and trade these tokens, we will set ourselves up for an ecosystem that can sustain in the long run. I wholeheartedly agree with the point you put forth, but I see infrastructure development to be an imperative step for today rather than looking to immediately tokenize shares.

Slow and steady wins the race. Accelerating too fast causes a dangerous crash.

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Love your comment @reverseacid

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Always appreciate your support @crypto.piotr

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Very valid points @reverseacid, I would like to address one point however. I don't believe anyone is forcing ICOs to become more transparent and offer their own ICOs but merely offering an alternative for investors that would like more transparency for blockchain related products especially after having experienced a variety of scandals and theft.

Secondly I'm fully with you on the security token part, that will take a longer time to implement. Starting with LCOs and working with regulatory bodies might help make them realize how blockchain will change the world, therefore it also might be the first step towards the direction of implementing STOs with full government support.

What do you think of these points? Would love to hear from you. Followed.

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Such an excellent and mature comment @reverseacid

big thx.

I (the person managing the Ambr Global account on STEEM IT) got personally scammed by 2 companies called ICO Headstart, and eCharge. They hired me, paid me in worthless tokens, then did the exit scam trick! Their tokens they paid me are useless, and will never land on the exchange. I believe you can already smell an exit scam, usually the CEO will not share some details, details you need to take away your concerns. Nice article, I wish you all the best, upvoted and resteemed!

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Sorry to hear this experience, thats the great thing about LCO's, its all transparent. Thank you for reading the article and for upvoting and resteeming! I have followed you!

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Thx for sharing your experience with us @ambr.global

They hired me, paid me in worthless tokens, then did the exit scam trick! Their tokens they paid me are useless, and will never land on the exchange

Would you mind telling me what services did you provide them with? Just curious (since you mentioned that they hired you).

Yours
Piotr

  ·  5 months ago (edited)

Hi @blockshine, this is certainly good news for crypto market.

Whilst I think LCOs have the potential to be a big thing in the future, I don't think it will be as early as 2019. The reason being, listing securities is a long and arduous process and having listed a company, directors are obliged to comply with stringent regulations, which in itself could be an impediment. I have known of companies de-listing themselves just to be relieved from these hassles.

I remember reading a post on whether STOs (Security Token Offerings) would eventually replace ICOs. Just wandering what are the differences between STOs and LCOs?

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Hello @devann thank you for your comments, for your good question, for upvoting and for resteeming! LCO's have already shown promise with the success of Ruden, check them out here: ruden.sg
I also go into detail about the use case of Ruden here in this Dtube video: https://steemit.com/blockchain/@blockshine/q4mbyyqb
To answer your question: An LCO is not a security. An LCO is a utility token whereby a listed company creates a fully or majority owned subsidiary to issue digital tokens. This is not to be confused with listed companies investing in private companies which later issue digital tokens. An LCO is there to ensure the transparency of the token’s activities, as it is a listed company that is legally obligated to provide information to their shareholders. In the case of the Ruden Blockchain, Blockshine will provide the technical expertise to create the token, along with building the platform to ensure regulatory compliance with Japanese law.

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Got it, @blockshine. Thanks for taking time to explain.

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@devann you are more than welcome, if you have any questions, feel free to fire away, do you think this LCO model could work in your jurisdiction?

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Dear @blockshine

Thank you for this amazing reply.

To answer your question: An LCO is not a security. An LCO is a utility token

So bottom line is, that some ulitily need to be created in the first place, right? So let's say you have existing company which only wants to raise more funds and sell part of their ownership (the way we could do it with stock markets). Or same company only were interested in raising money via IPO.

And this company doesnt have a need to develop utility token at all. In that case STO should be solution, is that correct?

Should LCO be considered replacement for ICO? Im still trying to undertand it.

Yours
Piotr

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LCOs will definitely attract institutional interest if they are created by 'blue chip' listed companies with excellent financial track records. It is definitely an exciting and promising development for the crypto sphere.

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Thank you for your positivity @investorprosper I think LCO's are the future and yes if they are solid listed companies such as Ruden or YPB Group there are many opportunities to be had, check out this article which is right up your alley for Singapore: https://www2.sgx.com/media-centre/20181115-regulators-column-what-sgx-expects-listed-companies-conducting-initial-coin

Could you see LCO's taking off in Singapore?

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I feel that Singapore regulators may take the cue from more established financial centres like US, Switzerland and Hong Kong before giving the green light for LCOs in Singapore.

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From the article it indicates LCO's could be done...

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Are you from Singapore @investprosper?

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Totally agree, @investoprosper. I suppose it would take a few 'blue chip' listed companies to get involved before the first domino falls!

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Indeed @devann it's all about adoption and trickle effect...

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Hi @investprosper

Great comment.

Would you be able with your own words expalain to me what is the difference between STO and LCO?

Yours
Piotr

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Hi @crypto.piotr

Based on my understanding, an LCO is a financial instrument for representing the bond, warrant or rights issues of a listed company, while a STO commonly represents the underlying shares of a company. And yes, I am from Singapore. :)

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Thank you @investprosper for your kind comment.

I appreciate it a lot.
Yours
Piotr

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Dear @devann

Great comment buddy

Whilst I think LCOs have the potential to be a big thing in the future, I don't think it will be as early as 2019.

I also believe that 2019 will be very calm and quiet.

I have known of companies de-listing themselves just to be relieved from these hassles.

Seriously? OMG. I never knew about it.

Just wandering what are the differences between STOs and LCOs?

That is indeed a great question and Im myself trying to figure it out.

Cheers
Piotr

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  ·  5 months ago (edited)

Dear @crypto.piotr

I think the main difference between STO and LCO lies in the ownership of the company and the company's right to issue dividends.

In the case of a STO, it being a security, it gives the holders of the security tokens a share in the ownership of the company. In addition, the company may pay dividends to these holders of the security tokens, if deemed appropriate.

Whereas, in the case of a LCO, the utility token is not a security and therefore the token holders do not have a share in the company and are not entitled to dividends the company may pay to its shareholders. Of course, if the token holder happens to also hold the shares of the company, he will be entitled to the dividends paid by the company as a shareholder but not as a token holder.

@blockshine, would appreciate you input to confirm, amend or expound on my comments above.

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You are absolutely correct @devann, you put it better than I could. Great Job!

In addition, there might be more momentum behind LCOs than at first glance, since first of all, blockchain is still a relatively new concept and listed companies pushing for LCOs might see their share prices increase and shareholders would like a piece of that. We are aware of a number of companies that are exploring going into blockchain, not only because of fundraising but also because the use cases are becoming more clear.

Again thanks for the comment!

I have followed you on steemit.

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  ·  5 months ago (edited)

@blockshine, it appears that a new form capital is born.

Besides debt capital and equity capital, now listed companies have another choice to raise capital, which is neither debt nor equity - the LCO capital.

From the perspective of a listed company, the company doesn't have the burden of a debt (the token holders are not lenders) or the traditional responsibility to its shareholders (the token holders are not shareholders).

If a token holder has concerns about the management of the company, he cannot attend the shareholders meeting to voice his concerns.

However, I predict that in the future, these developments may eventually lead to amendments to the Company Acts of the respective jurisdictions to provide better safeguards to the token holders. Who knows, the legislators may even create a third type of shares, besides the ordinary shares and preferential shares, calling it, say, crypto shares!

Alternatively, in future, you may even see companies treating token holders as lenders and providing security to them in the form of debentures! These token holders will then get a fixed interest against their loan secured by the debenture whilst being able to participate in the token economy.

Don't get me wrong. I am not saying that LCOs are bad. They are certainly better than ICOs. I am just brainstorming to predict the future possibilities.

cc @crypto.piotr, @reverseacid @julianhorack

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Dear @devann

Yet another amazing comment buddy.

However, I predict that in the future, these developments may eventually lead to amendments to the Company Acts of the respective jurisdictions to provide better safeguards to the token holders.

Wow. I've lost you here. To smart for my little brain :)

Yours
Piotr

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@devann excellent points, a great use case is Ruden which has raised some serious capital. Lets see how it pans out...

Hi @crypto.piotr thanks for share information ;))

Resteemed 😅

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Thank you for resteeming @ziapase it means a lot to me to share this information. I just had a look at your page and I particularly liked your My Story in Weekend post, upvoted!

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Thank you for your support and resteeming it @ziapase

I appreciate.

Never heard of LCO before but I think this is the future. You are absolutely right that ico’s are almost dead now.
I was spammed in crypto only once. It was an exchanger who took my money but never gave me back crypto and money.
I think one should make a crypto which is pegged to USD forever and then make a social media like steem. This will surely interest people and that social media will go to the moon.

Posted using Partiko iOS

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I am glad you found it informative @arslan ICO's have been through a rough time but I still think there are some solid projects out there and great use cases to be made. I am sorry to hear you were scammed, I have worked with many clients where this has happened. I believe in karma, so onwards and upwards!

I like your idea about pegging. There are many stable coins now such as AUDF (Australia) and USDT (USA) which have been effective.

Could the LCO model work in your jurisdiction?

I had a look at your page which I have followed, your photography is stunning.

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It seem that everyone I know got scammed at some point of their "life in crypto-space" @arslan786

:/

Greetings to you appreciated @blockshine
Thank you for giving us such important news in the digital stock market. I am sure that the future we will live in the coming months is being worked on. Hopefully everything turns out positive, the LCOs are a way for companies to re-invent themselves.
I find great similarity between the LCO´s and the STO´s. Do not you think like me?

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Hello @juanmolina
You're more than welcome! Thank you for upvoting! I know the markets are turning and the bull run is coming. I truly believe in this technology.

An LCO is a utility token whereby a listed company creates a fully or majority owned subsidiary to issue digital tokens. This is not to be confused with listed companies investing in private companies which later issue digital tokens. Issue with STO's is that the regulation has not caught up with the business model. LCO's are fully regulated in the jurisdiction in which it is registered, i.e. with Ruden it is regulated in Japan. STO's are still not entirely transparent, yet LCO's are there to ensure the transparency of the token’s activities, as it is a listed company that is legally obligated to provide information to their shareholders.

Could this model work in your country?

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Thanks for such an exemplary explanation.

The legal framework in my country is all in chaos. Laws are sanctioned without the slightest attachment to the constitution or the norms. For example, recently the legislature passed a law that practically eliminates freedoms in cyberspace.

So pretending that any company finds a legal basis to tokenize its actions would be an unprecedented fact.

Thanks for your response dear friend @blockshine.

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You're more than welcome @juanmolina let's hope the situation changes soon to allow for more freedom for crypto in your country.

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thank´s my friend. I also expect the same...

Quite an informative article @blockshine. I never doubted that the formal corporations and institutions would adopt blockchain, but they would do so soon is what is quite interesting to know. So, in many ways, the future is here. This push is only going to get stronger with time! I hope you are ready to brace for impact; blockchain impact to be precise! :)

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Thank you @oivas yes the LCO is a great way to bring the traditional listed companies on board which will have a positive effect for institutions to come on board. I share your positivity, blockchain is going from strength to strength! Could this LCO model work in your country?

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You know it is ironic that India allowed cryptocurrency since 2010 and yet just last year banned it subject to further studies. So, at the moment we won't be able to talk crypto or LCO in India but it is only a matter of time before we get going again. :)

Posted using Partiko Android

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LCO's might be allowed in India, worth looking into...

The truth is that I have no experience with ICO and the scams they talk about because I am not an investor. (I hope to be in the future) but what I am impressed by all this is the overwhelming speed in which these technologies move.

How many of you have heard of the LCO? The guys at @blockshine have some important points that this can be a big issue in the next year or two.

Personally, I focused mainly on STO (Security Token Offer) that I thought would be the next big thing.

Actually this is the first time I read about the LCO, for me it is a novelty, I just hope to get enough knowledge on the subject and the necessary resources to also venture as an investor in crypts, for now I am dedicated to read them and learn from you everything you need to grow.

Thanks for sharing this information.

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The pleasure is all ours @fucho80, I think you come into the market at exactly the right time in order to know more as all the low quality projects are getting pushed out of the market. You will be able to see loads of new growth and follow the development of real technology and be able to make an educated decision on when to invest into the market!

Please follow us and learn more!

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I'm following them, I'm really interested in knowing more about all this.

Thank you very much, I appreciate your help.

Hi @blockshine, thank you for your post. I came across your post via @crypto.piotr. I enjoyed reading your post.

As @crypto.piotr pointed out earlier I am also interested in STO's. Your project sounds interesting to me.

While reading your post I came across those lines:

Traditional listed companies are finally mobilising and entering the crypto space, with Japanese real estate company Ruden Holdings Co Ltd. being the first to issue a token.

I have to admit that I am not convinced by this statement. I googled this company since I had no clue who they are. Reading that the company was founded in 2000 let me raise my eyebrow.

A traditional company in my opinion is a institution which exists at least 50 years. Companies like Mercedes, BMW, Bosch or Unilever would fit that profile in my opinion.

Once they issue a token, the news will go viral and the general public would bring back trust to the Blockchain. In my opinion the world is scared at the moment and projects which can provide some sort of security and legitimatcity will succeed in the future.

I liked your post and am interested in the upcomming blog posts. I will leave an upvote and a follow.

@crypto.piotr thanks for sharing and I am glad to be back :)

Have a good one guys,
M

Inspiring post @blockshine, bringing the traditional markets on board with a blockchain business model through LCO's is a fantastic idea. Resteemed!

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Thank you for your kind comments @haogeili LCO's are the future and will change the industry! Upvoted!

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Where can I learn tokens Ruden Holdings Co Ltd ?

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Thanks for the interest @megalodon, you can learn all about it on www.ruden.sg!

Hey there @crypto.piotr invited me here to learn about this new venture and in my opinion LCO's will be more stable in the long run and I am hopeful you are successful in your crypto journey

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Hello @shaheerbari thank you for the lovely comment. Yes is a great place to learn more about LCO's, could this LCO model work in your country? I have followed you and I will check out your content!

I know nothing about LCO's... interesting, I'll look more into this...

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Thanks for dropping by @kimmysomelove42

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Hey my friend @kimmysomelove42, thank you for your interest. We will be happy to keep you updated on this large shift for the blockchain industry. So be sure to follow us on social media as we will be working on bringing more and more listed companies to this exciting market!

  ·  5 months ago (edited)

Thank you @blockshine for sharing something new with us & @crypto.piotr for referring this post to me. Upvoted, resteemed and shared already.

I'm pretty sure that most of you have experience or know someone affected by scammers. If you do then please share with us your experience and what did you learn from it?

Fortunately I have not experienced any SCAMS or not affected by scammers. Some scammers tried to scam me but I was aware about those kind of situation and how to avoid it so saved my self.

I know little about ICO & STO. But LCO is the word or concept I never heard of. I have read your full article on it but still I have so many doubts and so many queastions - I will surely research on this topic.

According me STO is the big thing for 2019 & 2020. Can't say about LCO because I don't know that much about it. I don't have idea how they will backed LCO and other things. Can't say for sure that this will avoid the situation that we had in ICO (surely better than the ICO but still riskier like ICOs). There is no doubt that after knowing about LCO more companies will enter in crypto world & main reason will be it's new concept and with it's terminology people will think that it's 100% secure and all - so people will invest in this for sure.

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Hi @flash07 thank you for upvoting and upvoting this. Glad to hear you were not scammed and were tuned to it. Feel free to check out some great articles on LCO's including this one just published in the Chinese University of Hong Kong Law Journal:
https://www.legalanalytics.law.cuhk.edu.hk/single-post/2019/01/18/Strengthening-Transparency-and-Investor-Protection-in-the-Tokenization-Process-The-Issuance-of-Tokens-through-a-Publicly-Listed-Company
Written by one of our team at Blockshine.

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Sure will check.

Thanks.

Posted using Partiko Android

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Dear @flash07

As always amazing and valuable comment. Thx for dropping by buddy.

Fortunately I have not experienced any SCAMS or not affected by scammers.

Lucky you! :)

But LCO is the word or concept I never heard of. I have read your full article on it but still I have so many doubts and so many queastions - I will surely research on this topic.

I feel very same way. I've never heard about LCO before and Im still having many questions.

Yours
Piotr

This is good overall, hopefully we can get rid of these scam ICOs for good. This is only the second time I've heard of that term LCO. I would be interested to see how much financial data they need to disclose and where it would be available for the public to see it? Thanks for your article.

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That's interesting @the4thmusketeer! Where else did you hear about the LCO?? Listed companies usually always post their investor relations reports on their homepages. They always disclose annual or quarterly reports to fill their shareholders in on whats happening inside the company such as information about their balance sheet, income statement and cash flow.

Hope that filled you in and let's keep spreading the word about the LCO!

Good friend. From my experience I know not any that has been ripped off however, it would be important to dig deeper. Thank you for the content and the motivation for further more.

Interesting concept for sure as it seems for come slightly short of the hurdles of STOs but will the transparency on providing information and being accountable to participants which are probably the best aspects of the STO. It would be great to see and learn the regulatory framework created for this concept as it could be a needed bridge to have a clear distinction of what have been traditional capital raises versus the crowdfunding concept that blockchain technology has innovated upon. Thanks for sharing!

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Thank you for your positive response @newageinv, I am glad it has resonated with you. Feel free to delve more into Ruden which is the best use case which has proved profitable.
Could this LCO model work in your jurisdiction?