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RE: ICO's IN TURMOIL, WE HAVE A SOLUTION...

in #news6 years ago

Governments are starting to decide to allow ERC20s to represent securities, its a simple process of tokenizing a security.

Ohio has began recognizing that tokenized corporate shares can represent ownership of shares in a corporation. This means that Aragon would be recognized as a legitimate organization in Ohio. That's pretty cool.

I would say that it is exciting for the future price of Ethereum for sure. Especially when derivatives end up going on Ethereum.

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Dear @hobo.media

Would you be able to point out what is the difference between LCO and STO (security token offerings)? STO is clear and simple but I'm kind of failing to understand LCO so far.

Governments are starting to decide to allow ERC20s to represent securities, its a simple process of tokenizing a security.

Seriously? I cannot imagine almost any ICO launched on ERC20 as a security.

Yours
Piotr

Honestly, I'm not sure I've heard of LCO before this post, but in my view it is the same as a STO or possibly a SEC "listed" coin offering, opposed to the unregulated ones. But a listed coin offering is only a tokenized security that is going through an IPO. Whereas a STO would just be a record of a security put on the blockchain. Apple stocks have already been put on Ethereum as a tokenized security, its nothing special, just a token representing individual Apple stocks.

This is a great development for securities because currently securities are "stateless" in technical terms, while putting the securities on Ethereum gives them "state" which is better. An article by an Ethereum developer pointed out this key value of stated objects vs. stateless and the value it has for the average person.

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