FREQUENTLY ASKED QUESTIONS
How to register ICO?
For the purpose of ICO registration, the companies need to abide by the data protection act and follow its terms and regulations. ICO registration is a complex deal and should be performed by virtue of an expert that is professionally acquainted with all requisite fields.
According to the Data Protection Act sanctioned in the year 1998, all companies, financial institutions or solo traders and entrepreneurs that are actively processing personalised information needs to register the ICO with the data protection act terms being abided by. This is done to ensure that the sensitive data associated with the user base isn’t harmed in any way or misused for personal intentions which could violate the user anonymity and privacy.
The crypto tokens which are treated as securities need to comply with the regulations of the US SEC. in general any other forms of crypto tokens are not monitored by the US SEC and therefore regulations need not be complied with in case of them. It is safe to assume the fact that presently there are no regulations associated with tokens except for securities.
The registration process needs the owner to disclose details regarding the ownership and also furnish other details associated with the team member, professional associations, sponsors and any other credential associated with the company with respect to the ICO. The registration papers are available online on the official website or can also be collected manually from the US SEC office.
What is an ICO?
With the prevalent cryptocurrency boom, many companies that have been integrating the blockchain technology within their infrastructure are looking forward to ICOs as potential means for gaining funds.
ICOs can be deemed to be much similar to that of IPOs except for the fact that in the case of the later one, the funds are exchanged in the forms of digital currencies. When a company launches itself in the global market, it requires a lot of funds to implement its programmes and projects. At times the entrepreneur might not have access to the requisite funds owing to which they seek other alternatives.
ICO stands for initial coin offering. In the case of an ICO, the company releases their digital currency in exchange for Bitcoin or ether which the company makes use of to fund their programmes and projects. The investors and buyers are provided for the company’s own digital currency prevalent in the ICO which entitles them to benefits and services forwarded by the company.
ICO is basically a symbiotic venture which provides the company with the requisite amount of funds in order to fund their programmes. The funds are collected from the participants of the ICO and used for development processes. The convention of an initial coin offering programme is pretty simple. The company basically sells their tokens to the public in return of which they receive funds in the form of actual cash or premier cryptocurrencies (mainly Bitcoin and Ether).
How to write an ICO whitepaper?
In order to engage an ICO and make it appealing to the common public, it is necessary that an ICO whitepaper is crafted for the common media. It is important to understand the fact that the ICO whitepaper is the heart and soul of the entire project. It is the first and primary means of information relayed to the common public in a comprehensive manner.
There are a few fundamental rules that apply to a successful whitepaper. They are as follows:
- It needs to be simple, understandable and should intensively describe all of the fundamental concepts related to the cryptocurrency ICO.
- It needs to have a simplistic and professional tone which would appeal to all sections of the common public and the general media as well.
- A classy and appealing whitepaper template needs to be taken into consideration which would be both classy and at the same time have a professional and corporate feel associated with it. The overall outlook needs to be similar to that of a prospectus which is both appealing and at the same time has a professional feel about it.
The key elements of the ICO whitepaper help to shed light on the integrals of the entire project. Therefore one needs to have subtle understanding of the concepts and thus frame the ideal contents in the whitepaper.
The Executive Summary of the whitepaper addresses the whitepaper in general and provides the readers with a comprehensive insight into the integrals of the whitepaper. At the same time, the other fundamentals include an introduction to the whitepaper which addresses the concepts of the business and the fundamentals. The whitepaper should properly describe the motto of the whitepaper and at the same time it also needs to provide for the roadmap, structural integrals of the project, funds allocation and a general insight into the company essentials (partners, developers, company briefing and past ventures).
The whitepaper should clearly explain the services to be forwarded and how it would be beneficial to the investors. It needs to relay the requisite information regarding as to why one should invest in their interests and how it would help them in the longer run.
Is there any regulation for ICO?
It is quite a common notion that ICOs are unregulated and do not have an association with any authoritative body. Owing to the emergence of a number of atrocious activities and fraudulency in the ICO domain, several countries have introduced their very own authoritative guidelines that need to be abided in case if an ICO.
The US Securities and Exchange Commission, also referred to as the US SEC has intervened in the proposition of ICOs and provided for a set of regulations that need to be taken into account for their successful launch. When an ICO fails to abide by these sets of ICO regulations, they can be penalised and banned for good. It is mandatory to abide by these set of regulations in the United States of America to segregate an emerging ICO from the fraud ones.
Similar to the above, the Financial Conduct Authority, which is the governing body in the UK, has been witnessed to have forwarded a certain set of regulatory guidelines for all the emerging ICOs across UK. The companies also need to abide by these set of regulations in the concerning region in order to be launched in the market. It is thus understandable that the regulatory bodies have been keeping a close monitor on all of the emerging ICOs owing to the fact that instances of fraudulent activities have been in the rise. The regulations are expected to tip off any chances of irrational activities in the cryptocurrency arcadia and therefore keeping a heed of them is absolutely necessary.