The pace of fundraising through ICO has now surpassed VC funding globally. Most issuers are hoping to use ICO funds to build real companies, however the actual process of accessing public markets may have been done without any regard for applicable laws, or by paying lip service to working around the law while blatantly violating it.
We at Token IQ believe that the benefits of a cryptomarket are much deeper and richer than failing to comply with regulation. In fact, by bringing crypto currencies into the bright light of government regulation, taxation and compliance, those advantages will become easier to express. It will be simpler and less expensive for entrepreneurs to raise capital and for well-established corporations to finance big, complex projects.
Our potential usrs
ENTERPRISES / PUBLICLY TRADED COMPANIES
Reduced execution time and transaction costs to finance sizable and complex projects.
Reduced cost to raise capital, by providing a turn-key solution for tokenization, compliance and investor management.
White glove solution for Investor's reporting and wealth monitoring needs, token recovery.
FINANCIAL INSTITUTIONS & BANKS
Allowing financial institutions to become gateways for their customers into fully compliant tokenized offerings.
Key PROBLMs We Address
Key Issues in ICO/ITOs Today
Despite the tremendous surge of activity and its popularity, the ICO ecosystem is still unregulated and largely ineffective.
COMPLIANCE WITH SECURITIES LAWS
Currently, many tokens sold through token fundraising do not comply with legal frameworks such as investor qualification rules, holding periods, transaction limits and transfers. There is a huge misalignment between securities laws and tokens operations.
CROSS BORDER ISSUES
Issuers currently simply don’t permit the direct purchase of tokens from territories deemed as problematic such as the USA and China. Thus, issuers are unable to control the post-release trading of their tokens and they are leaving a great deal of value and liquidity on the table.
TOKEN PRICE VOLATILITY
With a thinly traded pool it seems inevitable that tokens, if allowed to trade completely freely without regard for market dynamics and price support mechanisms will not meet founder’s expectations nor investor's long-term goals despite their initial run-ups in valuation.
POST OFFERING TRANSPARENCY
One of the core values propositions of blockchain based solutions is the increased transparency they should bring to the transaction pace. Unfortunately, the ICO/ITO market is exhibiting precisely the opposite tendency. Token IQ enables on-chain trading thus maximizing transparency and market efficiency.
HIGH TRANSACTIONAL COSTS AND SCALABILITY ISSUES
With increasing popularity of blockchain technology and use of Ethereum network as a go-to solution for issuing new tokens the cost of processing each transaction becomes costly, bears high friction and presents disabling lack of infrastructure scalability.
COMPLIANCE WITH ICO/ITO REGULATIONS
The regulation of tokens is a rapidly evolving area of government scrutiny. Investors that may qualify today may be proscribed tomorrow. Geographies that are challenging one day may be beneficial the next. Token IQ's unique approach to enabling issuers to manage their offerings allows unparalleled flexibility no matter how the environment changes.