The maturity of the block chains in emerging markets has contributed to the future development of ICO activities


nnnThe initial digital currency issue (ICO) is a new way of raising funds from chain-sector start-ups to attract more and more attention in the Asia-Pacific region. This creates market opportunities for venture capitalists (VCs) who want to raise funds and entrepreneurs looking for ways to raise funds outside the traditional venture capital and private equity sectors, and in 2017 the growth in ICO also led to the associated digital currency increase. However, local experts say the financing model is likely to be widely adopted only if the chain-chain ecosystems in these emerging markets are clearly mature.n
nnTranslation: Clovern
nInitial Digital Currency Issuance (ICO) is a new way of raising funds for block-chain start-ups, and is increasingly attracting attention in the Asia-Pacific region, and more specifically in Southeast Asia. However, according to local experts, this model is likely to be widely adopted after the ecosystem has matured.n
nThe block chain (where the bit currency digital currency uses proof of concept) is a technique used in a peer-to-peer (P2P) network that participates in parties in a given transaction. It uses distributed books that are visible to all parties involved in the transaction. Through the consensus network to ensure that the classification of the consistency and distribution of books, so that all parties are able to view its status, monitor its progress. This is also encrypted, which means that only those parties that are allowed to view can do so.n
nICO, also known as the Initial Digital Currency Public Offering (IPCO), is an unregulated financing for encrypted money companies that can be used to circumvent the due diligence and supervision involved in traditional capital financing. In general, ICO will sell a certain percentage of the digital currency to the project early supporters in exchange for the legal currency or other encrypted currency.n
nThis creates market opportunities for venture capitalists (VCs) who want to raise funds and entrepreneurs looking for ways to raise funds outside traditional venture capital and private equity. Bloomberg pointed out that in 2017, the increase in the amount of ICO makes the digital currency directly facing the public offering has also increased.n
nBlockchain Foundry, based in Singapore, mainly provides services for the block chain platform, and the company co-founder Floyd D’costa said:n
nn”ICO is an interesting development to address the lack of market demand in the capital market competition, which represents a subversive way to raise capital and control the distribution of new ways.Although it is just beginning to get more and more Welcome, but this may soon become the preferred way for non – block – based non – encrypted start – up companies to raise money, especially those that are keen on all.n
nnLike the digital money market in 2013-14, ICO has a considerable risk of bubbles and fraud, and it may attract more regulators’ concerns.n
nSingapore and Switzerland are already a popular destination for ICO because companies in these places are trying to avoid US securities regulation. Singapore is the first jurisdiction for financial technology companies to regulate sandboxing and other regulatory remedies, while Switzerland is the main center of block chain start-ups.n
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nThe chain of chains in emerging marketsn
nAt present, China and Japan become the largest encryption currency exchange location. “The only option is the spillover of knowledge and resources between China and Japan.” Both markets have reached critical levels in their ecosystems, “said Anson Zeall, chairman of the Singapore Encryption Currency Enterprise and Entrepreneur Association (ACCESS).n
nAccording to CB Insights data show that from 2012 until February 14, 2017, 43 countries of the bitco and block chain company has received 1.55 billion US dollars of equity financing. And this is when the financial services of large enterprises to enter the bit / currency chain ecosystem.n
nThe US dominated the deal with the dollar, and the US dollar and block chain start-up companies have harvested $ 1 billion in about 270 rounds since 2012, accounting for 55 percent of the industry’s total turnover. While in Asia, Singapore accounted for 3%, Japan, South Korea and China each accounted for 2%.n
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nIn the emerging market block chain and distributed classification of the application of technology, for banks, insurance companies, telecommunications companies and energy companies how to use distributed systems more attention.n
nThe technology will also be used in areas such as supply chain management and KYC applications as financial technology and block chains affect the region’s fintech field. In addition, the Asian technology industry is likely to catch up with the Western economies to achieve leapfrog development.n
nD’costa said: “At a broader level, ASEAN member countries can develop and use a distributed system to effectively promote and manage the flow of talent, goods and capital between borders, thereby promoting greater trade and regional cooperation “n
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nICO perspectiven
nDespite the lack of regulatory uncertainty, more and more private group companies are using the initial digital currency issue (ICO) as a viable financing. The ICO has witnessed the fact that the chain chain company finances through the coinage exchange exchange, and then the token can be traded on the encrypted currency exchange. The value of these tokens fluctuates depending on popularity, growth potential and / or general speculation; conventional securities and liquidity markets operate in the same way.n
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nZeall argues that the ICO is a way of raising “raising and investing to a new level”.n
nHe said:n
nn”Traditional investments usually need to trade cash equity or debt, and ICO, equity and debt are not the only option for investors to trade in the town, but this area is still new and I believe there will be better The problem with the traditional equity / debt industry is the actual transfer of cash to custody, especially across borders, which can be very expensive. When an event ends in failure, it becomes More expensive, and ICO does not exist in this problem.n
nn”If you look at the latest ICO financing, you will find it surprising if it’s right,” he added, “and if you look at the latest ICO financing, you can easily raise your value if you’re right,” he added. More than $ 1 million in encrypted tokens.If the stock exchange or private stock exchange to break the routine thinking, that is, the paper money will not be the main choice, the new opportunity will be flocked.For example, when the introduction of block-based electronics RMB, there will be a lot of new opportunities.n
nAt the same time, David Moskowitz, chief executive and co-founder of Attyst’s CEO, said that ICO’s presence was an “use case” for encrypted currency and public sector chains.n
nHe said: “The beneficiaries who make the user a platform are a change in the rules of the game.I suggest calling it a tokens – I would rather react to the ICO as an IPO,n
nHowever, he did not see the stock exchange or private secondary exchange to implement such a solution. He adds: “They can not. Because of the regulation prohibiting this innovation, their day-to-day management costs are high, which is similar to the real P2P payment problem solved by Bitcoar unless the rules go to the real masses (unidentified masses) Open and incorporate it, or only by using this technology in the regulated industry to get a small improvement, “n
nCompanies in the field of distributed technology (DLT) are increasingly concerned, and the European Central Bank is one of the main players in this area. DLT technology has an impact on payment, clearing and settlement, as it is expected to reduce or even eliminate the problem of the transfer of digital assets and financial inefficiencies in financial markets.n
nD’costa says:n
nn”Edge applications may be a candidate, but the technology to go to a centralized trading platform and a distributed P2P clearing system is already available.” Nasdaq has also conducted a number of pilot projects, and I believe that soon, we will be in Asia In the past few months, I have communicated with central banks, stock exchanges and clearing houses on the adoption of block-chain technology, and these conversations are absolutely right in the right place. Direction forward.n

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