Initial Coin Offerings (ICOs) or Token Generating Events
(TGEs) are perceived as an unregulated means of raising funds by
issuing virtual coins or tokens (hereinafter: Tokens) intended to
become a new cryptocurrency. Many
start-ups consider ICOs or TGEs as an alternative to the expensive
traditional capital-raising processes.
Tokens issued in an ICO/TGE, however, are still subject to legal
scrutiny and ICOs/TGEs have come into the focus of the regulators
in the USA (SEC) and Singapore (MAS) regarding their compliance
with existing capital markets regulations.
Relevant Issues
Tokens are created and disseminated using distributed ledger or
blockchain technology. The start-ups create a so called
whitepaper which explains the project to be funded by the
ICO/TGE in detail. Token purchasers fund the development of a
digital platform, software or other projects. The Tokens may be
used to access the platform, use the software or otherwise
participate in the project or
