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Digital Tokens are electronic information unit, creates for identify personal rights of the investment token or rights for product or service and utility token as agreed with the token issuer. It may be purchased through Initial Coin Offering (ICO) process
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Currently, cryptocurrency is not considered as legal tender. One of the well-known cryptocurrency is Bitcoin and Ethereum.
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ICO (Initial Coin Offering) is a fund raising which use of blockchain technology. The company will offer and sell token that identify the rights or benefits to investor such as project’s profit, or product or specific service rights to the investor who want to join the investment by trading by cash or cryptocurrency at the token issuer company. By identify and control the rights by smart contract on blockchain technology.
ICO may not considered as stock or debt. ICO named similarly to IPO (Initial Public Offering – issue and sell stock to public) . It has the most different main points. The token holder of the ICO investment may not be that company’s owner or creditor as IPO stockholder. They has no rights in company’s assets in case of bankruptcy or close down business but only as states in white paper.