The pioneer of online trading Binary.com, which issues securities-backed smart tokens tied to its shares, earlier this month announced plans for an Initial Coin Offering (ICO). Binary’s ICO is designed to protect investors by adhering to best practices of corporate governance, investor disclosure and transparency.

They believe that ICO and their use of blockchain technology can replace IPOs in the future, although they have almost no similarity in the landscape. The ICO is already active and will end on December 25th, 2017.

“The next step for a company of our size is naturally to go public by means of an Initial Public Offering (IPO),” saysJean-Yves Sireau, Binary.com Founder & CEO. “However, an IPO in itself is a cumbersome process that’s remained relatively unchanged for decades. Some would say it’s ripe for disruption. By opting for the ICO route, we can go beyond the limitations of a traditional IPO.”

He continues:

” We get a wider reach of potential investors, lower costs of trading and an immutable audit trail of transactions on the blockchain. Through our ICO, we will also establish our trading services among the global cryptocurrency community.”

“We also believe that traditional stock exchanges will gradually be replaced by blockchain exchanges in the coming decade. This ICO will give us an opportunity to establish ourselves at the forefront of blockchain innovation”.

Binary.com, a profitable company with a proven business mode, offers up to 10 million tokens through an open auction on its website. Each token has two perceptible economic benefits for investors.

First, Binary’s tokenholder has the right to convert the tokens into Binary Ordinary Shares. Secondly, investors can trade their tokens on the Lykke.com, cryptoasset exchange, thereby increasing the value of tokens.  Lykke is a Swiss fintech company that builds a global blockchain-powered marketplace for securities-linked tokens.

ICO and exchange of crypto-currencies provide investors with even more advantages, including 24-hour trading, faster settlement time and lower trade costs.

Financing of an account for exchanging cryptocurrencies using Bitcoins or Ether differs greately from that using traditional stock broker, wich needs a bank transfer. Thus the first one is cheaper, easier and faster.

In addition, ICO reduces the fee paid to several beneficiaries during the IPO, including the underwriter and the stock exchange.

It also allows companies to raise funds from the global box of investors and their tokens on any number of exchanges of cryptocurrencies using smart tokens based on a standard protocol. If these companies conduct an IPO, they usually attract funds from investors in the same jurisdiction as the stock exchange, and see their shares.

Thus, all the advantages of an “IPO in a block chain” can not be easily copied by traditional exchanges., but Binary.com’s ICO could enter a new wave of blockchain.

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