Click here to read “Op Ed: ‘We Never Thought of That’ — When Venture-Backed Companies Undertake Reverse ICOs’ from Bitcoin Magazine.
This Op-Ed discusses the ways in which reverse ICOs might be problematic for existing investors, and details the three types of ICOs.
“What makes the analysis particularly difficult is that, broadly speaking, there are three types of ICOs:
Equity Tokens — these tokens are essentially digital shares with the issuer specifying equity participation, voting rights and other token/shareholder rights.
Non-Equity Security Tokens — these tokens do not grant equity rights but under the Howey test are nonetheless classified as securities.
Utility Tokens — these tokens allow the purchaser to buy products or services from the issuer.”
The Op-Ed also goes on to talk about other issues that would potentially arise from reverse ICOs, centering on the current uncertainty in regulations and standards for investments utilizing ICOs, and raises questions regarding equity and investor status.
It’s worth a read, and we’d be curious to see what feedback you might have.