Similar to IPOs in investment markets, ICOs first emerged as a means to raise funds in the form of cryptocurrencies. Having helped to raise billions of dollars, ICOs allow startups to avoid regulatory compliance and intermediaries, which eventually led to its downfall due to scams and securities law violations. Following this, the landscape of crypto-crowdfunding has witnessed the rise of security token offerings (STOs), a more transparent investment vehicle approved by regulators. This phenomenon hence raises questions on the potential of STOs in replacing ICOs entirely and how long STOs can survive in the crypto market.
In this issue, VisioBloc focuses on digital assets and crypto-fundraising. We have both tech and legal experts to provide us with insights on the regulation of digital assets and the recent trends and possible developments of crypto-crowdfunding, particularly in Asia. Aside from the ICO v STO discussion, there is a brief overview of initial exchange offerings (IEOs) as the next fundraising trend.