IOTA May Replace ICOs with ISOs
ICOs are a major point of uncertainty in the blockchain markets. 2017 was the year that saw the ICO (Initial Coin Offering) break into public awareness. This novel fundraising model enabled individuals and companies to create virtual tokens, selling these in exchange for cryptocurrencies like Ether and Bitcoin. The nascent industry brought in billions, sidestepping the securities laws that govern the Initial Public Offering model usually employed by corporate bodies.
There’s just one problem: ICOs have been more-or-less unregulated since their creation, and this situation isn’t going to last forever. The Securities & Exchange Commission in the United States is expected to make explicit its definition of cryptocurrencies in the coming months. The same is true of nations as diverse as Taiwan and the UK. Such rulings could put fetters on the ICO industry if many ICO tokens are deemed to be securities. So is there any way for IOTA to replace ICOs?
The IOTA community has brainstormed the concept of the IOTA Initial Service Offering (ISO). As a possible avoidance of ICO securities violations, the ISO would introduce a new digital product or service to users of the remarkable IOTA ecosystem. It would not, however, issue new tokens. Users would instead be able to pay various amounts of MIOTA for various services and product privileges.
This model is very similar to the one employed by Kickstarter and other crowdfunding outfits. Because companies do not offer equity value in their companies through these channels, people who put their money in are much more like customers than investors. IOTA does have plans for token sales and airdrops, but leading with the theorised ISO plan could keep new products on the right side of future securities laws. If it works, other smart contract blockchains could follow suit.
More Use Cases for a MIOTA Recovery?
IOTA has one of the best platforms for real-world adoption in the cryptocurrency space. Investors may be able to buy IOTA at ever-cheaper prices, but this doesn’t mean that the company hasn’t made true inroads with real world industries. With the introduction of IOTA’s IAMPASS human handprint ID system, as well as IOTA partnerships with Fujistu and more, IOTA’s real-world utility is now incontrovertible.
If IOTA can prove that the ICO industry can be re-imagined as an ISO industry, this could bring renewed development interest to this already-interesting platform. Of course, we may never again see the multi-billion dollar hard caps of 2017 and early 2018, but history may prove that these hindered the space more than they helped.
In any case, with IOTA looking more impressive than ever before, we think today’s MIOTA prices might be one of the best deals you’re likely to find.
(*Information in this article should not be taken as investment advice.)