IOTA's Hybrid Between ICO and Kickstarter - IOTA News. Friday, October 12th
A crowdfunding platform planned for IOTA
They claim it is a hybrid between an ICO and Kickstarter
An initiative to develop a crowdfunding platform for the IOTA network could come to realization, and it is being built around the idea of a hybrid system between initial coin offerings (ICO) and the well-known crowdfunding platform Kickstarter. The platform is dubbed IOTA-ISO (with ISO standing for Initial Service Offering).
The project is being led by TomTom, and it seeks to provide a common place for IOTA projects looking for funds by the community. “We are looking to build a system where you and others can participate in projects being built on the IOTA technology by funding/participate in the projects future services,” reads TomTom’s publication on Medium.
An interesting thing of this project is its aforementioned hybrid system. According to the developer, the ISO is not intended to convert IOTA into another Ethereum platform, as they are trying to prevent repeating the latter’s ICO frenzy of 2017, which caught the attention of the U.S. Securities and Exchange Commission (SEC). As a result of this, many of the 2017 ICO projects have their token labeled as securities, hence they need to be regulated. This is something TomTom don’t want to occur in their platform.
“We would argue that the native IOTA token is a utility token and not a security because it is meant to function as ‘fuel’ for a service and not for speculation,” they said.
And, in order to ensure that tokens of the projects looking for fund in the IOTA-ISO platform don’t fall into the “securities” category by the SEC, the developers intends for project owners to only use IOTA’s native token as ‘fuel’ for their future services of features where the coin is needed. “We would make agreements with the project owners on how to facilitate the funding for the project, as well as advise, run advertising, and wallet system for a fee.”
On the other hand, those who wish to participate in the development of IOTA-ISO can help by funding it in an early phase. In turn, they will have the rights to a ‘fixed service’ redeemable twice a year, by the issuance of a receipt token.
A whitepaper of the service is currently in development, TomTom asserted, and will explain all the solutions and services they will offer to funders, as well as a detailed plan on how users tokens will be secured.
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