‘Overseas ICO’ to be a hot potato rather than IPO of corporate financing
Kim Min Soo | minsu@ | 2018-03-12 10:52:47
The `virtual money market (ICO)` market is going to be a hot potato in overseas markets where new development of virtual currency and related projects are posted online and recruiting funds. Concerns are growing that the ICO market is likely to shrink due to the expansion of overseas ICOs, especially in major domestic IT companies.
According to the financial investment industry on March 11, ICOs gathering investment money through the issuance of virtual currencies are getting attention, and major domestic companies are actively promoting ICOs overseas.
ICO is funded online by providing a newly developed virtual currency or by issuing a token that bundles the rights of the relevant virtual currency and related projects. Like the IPO, it raises funds from the general public, but it differs in that it offers virtual money or tokens instead of issuing securities to investors in exchange for funding. ICOs prefer companies in that they can raise money while avoiding demanding listing conditions, such as IPOs.
In fact, Korean and foreign companies, including domestic IT companies, are increasingly financing through ICO. In Korea, ICO is not illegal because there is no special regulation on ICO. However, since financial authorities are regulating the ICO, companies are promoting ICO mainly in Switzerland, Gibraltar and Singapore.
Telegram, a global mobile messenger company, has developed a new virtual currency `Gram` through a block chain platform `TON`. It has been reported that it has invested about 900 billion won in pre-sale for ICO and venture investors.
Recently, Hyundai Group affiliate Hyundai BS & C established a block chain affiliate in Switzerland and issued KRW 300 million worth of virtual money `Hitchak`. The Loop, a subsidiary of Daily Intelligence, recruited about KRW 100 billion for the virtual currency `icon` and the block-chain company `Geoburn Tech` also developed KRW 17 billion for the virtual currency `Bosco Inn`. The company, which specializes in block-chain, has collected KRW 15 billion through ICO of Hyacon and MediBlock, a medical information management platform, has raised about 7 billion won by issuing Medi-Tokens.
Besides, HealthCare Start-up Jitto will establish a corporation in Singapore and plan to raise about KRW 20 billion through ICO, a virtualization insurer, through a block-chain-based insurance platform. Mai 23 Healthcare is also expected to build a healthcare data sharing platform and will launch the `Alphacon` ICO in May through a Singapore subsidiary. Hanbit Soft, a game maker, plans to launch ICO through its Hong Kong subsidiary, `Brillite Coin`, a virtual currency, and ZPER, a block-chain-based personal trading platform (P2P) .
Naver, a leading information technology (IT) company in Korea, is also establishing `Line Financial` through a subsidiary line in Japan and is preparing a virtual currency service. Although Cacao did not disclose specific business plans, it is likely that it will be published in ICO, and it is likely that `Line Coin` and `Cocoa Coin` will be issued soon.
As such, Korean major companies are hurrying to enter ICO overseas, and there is a great concern that the existing IPO market will shrink in the existing regulatory financial investment market. Currently, companies are securing investment funds through IPOs and investment markets through stock trading. But if major corporations move to ICO, the existing institutional investment market may be shrinking. In particular, domestic virtual currency trading is difficult in reality due to regulatory measures by the authorities.
"ICO is a method of financing companies similar to IPOs," a senior official at the Korea Exchange said. "With the expansion of companies raising funds through ICO, we have to worry about the KRX." As the ICO market based on the block chain emerged, the Korea Exchange plans to introduce an `Innovative Technology Team` this month and introduce new technologies.
A representative from the Korea Exchange said, "There has been a lot of talk that the appearance of virtual money will be a threat to the function of the exchange itself from the past," he said. "It is necessary to seriously consider the measures to strengthen competitiveness in response to the ICO.”
By Kim Min Soo minsu@
[ copyright ⓒ The Digitaltimes ]
According to the financial investment industry on March 11, ICOs gathering investment money through the issuance of virtual currencies are getting attention, and major domestic companies are actively promoting ICOs overseas.
ICO is funded online by providing a newly developed virtual currency or by issuing a token that bundles the rights of the relevant virtual currency and related projects. Like the IPO, it raises funds from the general public, but it differs in that it offers virtual money or tokens instead of issuing securities to investors in exchange for funding. ICOs prefer companies in that they can raise money while avoiding demanding listing conditions, such as IPOs.
In fact, Korean and foreign companies, including domestic IT companies, are increasingly financing through ICO. In Korea, ICO is not illegal because there is no special regulation on ICO. However, since financial authorities are regulating the ICO, companies are promoting ICO mainly in Switzerland, Gibraltar and Singapore.
Telegram, a global mobile messenger company, has developed a new virtual currency `Gram` through a block chain platform `TON`. It has been reported that it has invested about 900 billion won in pre-sale for ICO and venture investors.
Recently, Hyundai Group affiliate Hyundai BS & C established a block chain affiliate in Switzerland and issued KRW 300 million worth of virtual money `Hitchak`. The Loop, a subsidiary of Daily Intelligence, recruited about KRW 100 billion for the virtual currency `icon` and the block-chain company `Geoburn Tech` also developed KRW 17 billion for the virtual currency `Bosco Inn`. The company, which specializes in block-chain, has collected KRW 15 billion through ICO of Hyacon and MediBlock, a medical information management platform, has raised about 7 billion won by issuing Medi-Tokens.
Besides, HealthCare Start-up Jitto will establish a corporation in Singapore and plan to raise about KRW 20 billion through ICO, a virtualization insurer, through a block-chain-based insurance platform. Mai 23 Healthcare is also expected to build a healthcare data sharing platform and will launch the `Alphacon` ICO in May through a Singapore subsidiary. Hanbit Soft, a game maker, plans to launch ICO through its Hong Kong subsidiary, `Brillite Coin`, a virtual currency, and ZPER, a block-chain-based personal trading platform (P2P) .
Naver, a leading information technology (IT) company in Korea, is also establishing `Line Financial` through a subsidiary line in Japan and is preparing a virtual currency service. Although Cacao did not disclose specific business plans, it is likely that it will be published in ICO, and it is likely that `Line Coin` and `Cocoa Coin` will be issued soon.
As such, Korean major companies are hurrying to enter ICO overseas, and there is a great concern that the existing IPO market will shrink in the existing regulatory financial investment market. Currently, companies are securing investment funds through IPOs and investment markets through stock trading. But if major corporations move to ICO, the existing institutional investment market may be shrinking. In particular, domestic virtual currency trading is difficult in reality due to regulatory measures by the authorities.
"ICO is a method of financing companies similar to IPOs," a senior official at the Korea Exchange said. "With the expansion of companies raising funds through ICO, we have to worry about the KRX." As the ICO market based on the block chain emerged, the Korea Exchange plans to introduce an `Innovative Technology Team` this month and introduce new technologies.
A representative from the Korea Exchange said, "There has been a lot of talk that the appearance of virtual money will be a threat to the function of the exchange itself from the past," he said. "It is necessary to seriously consider the measures to strengthen competitiveness in response to the ICO.”
By Kim Min Soo minsu@