Cryptocurrencies Being Issued With Business Ideas Behind It – Serves More Than Currency PotentialApril 29, 2019
It is way forward for the cryptocurrency sector as a whole. Whether it is about the fate of smaller tokens like TCAT tokens or giants like Bitcoin, Ethereum’s or Litecoin, the industry is surely progressing.
ICOs have evolved to become (IEO) Initial Exchange Offering, which provided for projects to sell tokens and issue tokens in a new way. The IEO is considered to be more efficient than ICO. In short IEOs are efficient versions of the ICOs.
In an ICO the participant sends a request to the smart contract that governs the ICO in order to make a purchase of the token. In the IEO, the coins for a particular project are pre-mined to be listed on the exchange which will conduct the Initial Coin Offering. The IEO will have a cap on the contribution per individual, fundraising amount, and the fixed price of the token. The risks associated with IEOs is less than the ICOs.
IEOs are advantageous because of the increased degree of security and trust and therefore are considered to be more efficient.
With the risk of scams being higher, the exchange will scrutinize the project in depth in order to rule out chances of dubious fundraising and scams.
However, for all of these phases and projects to be sustainable government help is required. The laws should be advanced to keep up with the developments in the cryptocurrency market.
Andrew Yang, a tech entrepreneur, stated, “Uncertainty in what regulatory framework will develop is causing US investment in the area to lag behind the investment of other countries.”
Analysts opine that cryptocurrencies are very complicated than just the rise and fall of Bitcoin. Governments should acknowledge that cryptocurrencies will be able to function like plain old money and can be used to buy and sell things and also to store value. They have a purpose beyond speculation.
Also, regulators should understand that blockchain technology can be used for accounting that is beyond cryptocurrency as well. Yang stated, “The blockchain has vast potential.”
The IRS treats cryptocurrency largely like security. When you buy and sell crypto and if the value of the cryptocurrency increases you need to be paying taxes on the profits that you make when you sell it.
Nike has recently filed for a patent to launch “cryptokicks” their cryptocurrency. Josh Gerben, trademark attorney, stated, “There has to be somewhat of a business idea behind it. If you submit things just for the purpose of submitting things, it will tie up the trademark system unnecessarily. Nike does not have a history of filings that are speculative.”