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While ICO is banned in China and crypto-currencies are severely regulated in the US, Canada, Singapore and Australia, it is inevitable that the global ICO market and its ecosystem are undergoing major changes in the near future.
Companies attempting to raise funds by selling their own coins or tokens would be better off moving to countries that do not impose such harsh regulations on the crypto-market, such as Switzerland or the United Kingdom.
Yet this does not solve the main problems with the subject: taxing and defending the rights of the investor.
A number of countries still have no clear position on the regulation of ICO's campaigns, but this is only temporary, experts say. Steps will be taken as soon as governments develop possible scenarios and decide how to deal with the cryptocurrency market. Countries that have not yet imposed regulations on cryptocurrency and crowdfunding projects include Belgium, Sweden, Denmark, Estonia, South Korea and the Russian Federation.
In this situation, where governments are trying to regulate what was not supposed to be regulated, there has been an influx of ideas on how to ensure the defense of rights and interests of investors – for example, by integrating a centralized system in the decentralized.
An elegant solution to this problem is the hybrid online investment.
Hybridization of the OIC
IPOs have been a viable way of inviting investment since the 19th century when the first public sale took place. Online actions are replaced by tokens and coins.
The reasons for the move from the IPO to the IPO are not only obvious but reasonable: it is the need to escape excessive regulation and centralization and reach a larger crowd of investors.
However, the escape into the world of anonymity and decentralization has had its consequences. The lack of regulation means that there is no protection of investors' rights either.
But if, instead of reinventing the wheel, we were taking a simple instrument that is well known around the world, and with its help, create a safe and secure system for online investing?
The cryptocurrency market is a much more democratic environment than the exchange. The difference between currencies and equities is often ephemeral. The idea of supporting tokens with promissory notes and draft applications might seem retrograde, but in fact, it can be considered a successful use of good old techniques proven in modern times.
The promissory note is the oldest security document. And even though most promissory note regulations were created in the early 20th century they are still recognized by many countries.
Promissory notes have been designed as an instrument that allows for the investment of unused money, but also as a loan tool. Promissory notes may even be transferred to another person by an endorsement. The main problem with promissory notes has always been the fact that they were easy enough to counterfeit, even easier than banknotes. Nowadays, this problem can be solved by smart contracts and blockchain technology.
It seems that the paper titles contradict the very idea of decentralization, but the contradiction is only illusory. In fact, paper titles add an entirely new level of protection. The goal of hybridization is to combine the best aspects of centralized and decentralized systems: transparency and reliability, bond market traditions and modern technology, virtual code and physical documents. All these aspects complement each other and ensure the protection of all parties concerned.
What is hybrid online investing?
Hybrid investing is a system in which tokens exchanged by businesses are backed by paper securities, for example promissory notes. The notes are issued on paper and kept in the vault of the arbitration company. The property rights of these notes, as well as the transfer data are stored in the blockchain. Thus, security can not be stolen or counterfeited. To receive the note, it would be necessary to order its delivery or to visit the company of arbitration.
Of course, blockchain can not guarantee payment on promissory notes, since the notes themselves do not imply that the company owns financial assets. Due diligence could be a solution to this problem. The evaluation by experts of projects that intend to issue tokens is one more step towards a safe environment for investing.
Fraud is unlikely because in the case of a successful fundraising campaign, any company would prefer to invest these funds in its own development. In case a company does not want to pay interest or deposit to the investor, the latter can always seek help from a court, where the notes, unlike smart contracts , are known and can be court cases.
The platform of the electronic billing system
The EBS team is the pioneer of hybrid online investing. The team plans to work online and offline. They have successfully created and tested the prototype of the platform, which allows users to issue and negotiate promissory notes online. Now they are looking to raise money to bring their project to an international level and make it favorable for investors and companies looking for investment.
As an arbitrage company, Electronic Bill System intends to open a network of international offices, to create a community of experts, to perfect its instruments online and develop new ones – a Broker's Board at the conditions of the holder) and an exchange, where the chips of the platform (EVRTokens) can be exchanged for cash trust. .
The tokens of the company are, of course, backed by promissory notes. Investors will get a profit of 316% if they hold a promissory note for three years. Of course, one can easily sell EVRTokens right after the end of the ICO to enjoy 100%. The presale starts on November 1, 2017. For more information, you can visit the website EBS – e-veksel.io