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ICO as an innovative strategy for operational funding
Sharova Varvara Andreevna

Laboratory Assistant, Scientific-research financial institute under the Ministry of Finances of Russia

127006, Russia, Moskva, g. Moscow, per. Nastas'inskii, 3 str 2

vsharova@nifi.ru
Daneeva Saizhina Olegovna

N/A

119517, Russia, g. Moscow, ul. Matveevskaya, 10 k2, kv. 236

daneevaso@yandex.ru

Abstract.

This article explores ICO as an innovative strategy for getting funding. The authors reveal the key advantages and flaws, prospects and problems, as well as the main trends of development of this phenomenon. This strategy for funding seems most promising and technological. In the process of ICO, the project team issues and sells cryptographic assets – tokens for cryptocurrencies (usually Ethereum). If the project is successful, investors can sell their tokens for profit. The principle of getting funding using ICO is similar to the IPO: parties invest into a particular company and receive dividends, but in the case of ICO, they use tokens instead of stocks. The research presents analysis of the key indexes of the dynamics of development, as well as popularization and efficiency of ICOs as a means for project funding.  ICOs are an innovative and promising strategy for funding, demonstrating an undeniable advantage in form of using the blockchain technology. At the same time, various types of fraud methods emerged due to lack of precise government regulation of the industry. However, statistical data demonstrated gradual stabilization in the area of ICOs, which can be explained by better information preparedness of investors, which are becoming harder to attract to such projects. Developing countries are also working on the normative legal base of this phenomenon, which prompted a decrease in various fraudulent schemes.

Keywords: Ethereum, IPO, blockchain, scam, ICO, Inicial coin offering, the legislative framework, regulation, Whitepaper, token

DOI:

10.25136/2409-8647.2018.3.26784

Article was received:

06-07-2018


Review date:

09-07-2018


Publish date:

28-09-2018


This article written in Russian. You can find full text of article in Russian here .

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