The ICO is over. Recently, the US SEC began a crackdown on fraudulently issued securities, with crypto projects Aragon and Paragon being fined $250,000 and ordered to refund investors. The cryptocurrency market is reeling from the news, with fears that many more projects may be in the crosshairs of the SEC due to a vaguely worded statement which suggested the SEC considers almost all ICO’s to be security offerings.
However, outside of America, a new legally compliant alternative to the ICO has appeared on the scene. An LCO (ListedCo. Coin Offering), is a coin offering by a listed company, bringing the transparency legally required of listed companies to the crypto space. The first such offering is from Ruden Holdings Co Ltd., a real estate company from Japan.
Ruden plans to put Japanese Real Estate on the blockchain, with an aim to both boost real estate liquidity and lower the barrier of entry for foreign investors. To achieve their goal, Ruden has been seeking investment, pitching the technology across the globe on a World Relay. Starting in Singapore, headquarter of the blockchain division, moving on to Dubai, Melbourne, Sydney, Vilnius (Lithuania) & HongKong.
Regarding Ruden’s plans, Sam Lee, CEO of 300 million dollar investment fund, Blockchain Global stated:
“Tokenisation is the future of traditional business. At this point it is an inevitable, due to the efficiencies and transparency it will bring. There is a tremendous amount of value waiting to be unlocked by LCO’s.”
Clearly, LCO’s are just getting started, but there are a growing number of listed companies following in Rudens footsteps, with investors keen for a legitimate replacement to the unregulated chaos of the ICO.