Binary.com, the pioneer of online binary options trading, has launched an ICO that demonstrates how an IPO can be effectively carried out on the blockchain.
Through this landmark token sale, Binary.com will issue tokens that convey dividend rights to investors just like shares. The token sale runs until 25 December 2017. Redefining IPOs in the age of the blockchain Binary.com is calling it an “IPO on the blockchain” as it’s meant to be an effective substitute for a conventional IPO performed by a stock exchange.
To execute its vision as faithfully as possible, Binary.com decided to issue securities-backed
smart tokens with real economic benefits. Other than dividend payments, Binary.com tokens
can also be converted into ordinary shares –– unlike the utility tokens that are issued in a
majority of ICOs.
It’s also designed its “IPO on the blockchain” around best practices in corporate governance,
investor disclosure, and transparency, including an Information Memorandum that fully
discloses its financial history and risk factors.
Easy decision to make
But why did Binary.com choose an ICO over an IPO in the first place?
“An IPO in itself is a cumbersome process that’s remained relatively unchanged for decades. Some would say it’s ripe for disruption. By opting for the ICO route, we can go beyond the limitations of a traditional IPO,” says Binary.com Founder & CEO, Jean-Yves Sireau.
Ultimately, it was an easy decision to make after considering its many advantages, including:
- Lower costs of “listing” as it can cut out the fees paid to the usual middlemen in an IPO
- Ability to raise funds from a global pool of investors
- Seamless listing of its tokens on any number of cryptocurrency exchanges that support the ERC20 protocol
How you can participate in the Binary.com ICO
Potential investors can purchase the Binary.com tokens through a Dutch auction that allows the market to determine the final price of each token. They need to open a real money account and fund their account using a wide range of fiat and cryptocurrencies to bid on the tokens.
Due to applicable securities laws, the ICO is only available to residents of selected countries. For example, it will not be available to U.S. investors. In certain countries, prospective investors are required to verify their status as qualified or professional investors. Source – Binary.com
Get your copy of What is Bitcoin
This e-book on Amazon explains what Bitcoin is, it explains that Bitcoin (BTC) is a virtual currency, digital not physical, and independent of banks. Useful links and resources for the newbie and advanced Bitcoiner or cryptocurrency enthusiast.
Please leave your questions and comments below:
Download the free Bit-Media App from the Google Play or Apple stores.
Click below and get your FREE BIT-MEDIA APP