Reverse ICO

[Zed0X]

I recently encountered this term "Reverse ICO" which is defined as:

Reverse initial coin offering (ICO) is a method used by existing, established real-world businesses to raise funds and get into cryptocurrency. These enterprises have existing products and/or services, and they cater to real world customers. Essentially, reverse ICO acts as an initial public offering (IPO) allowing an existing enterprise to launch cryptocurrency tokens and seek funds through crowdsourcing.

- Source

Basically, it is a crowdfunding done not by a start up project but by an established project. I think this is an attractive investment model as it eliminates many risks involved in many regular ICOs like team capability to develop and market the product.

Would you invest in this type of projects?

[tsakf]

I think that it is a great tool. Although, there are some loopholes, in the regulation. If it is an established, project, it has a classification. New funding is strictly defined, by current regulations. Any funding, might be classified as shares, and cryptocurrency regulation, is needed, to avoid legal problems, for the established project.

[Galon]

I think the improvement in Iico is inseparable from the improvement in the crypto market. Of course this is good news that is very much awaited by investors as well as traders.

[Zed0X]

I think that it is a great tool. Although, there are some loopholes, in the regulation. If it is an established, project, it has a classification. New funding is strictly defined, by current regulations. Any funding, might be classified as shares, and cryptocurrency regulation, is needed, to avoid legal problems, for the established project.

Agreed on the loopholes. Despite the crowdfunding model being used for a couple of years now, institutions like SEC still fail to make a clear regulation and this factor keeps some investors away from participating in standard ICOs to raise funds. For reverse ICOs however, garnering funds might not be as difficult as standard ICOs.

[comer]

That's great! If project is already established failure to launch in the exchange is minimize. Further, if project has a good product that would surely attract huge investors to come in. Unlike today, if ICO failed, project can no longer move forward because of lack of funds.

[LogiC]

I think it has no difference in terms of a normal ICO. It's just that they allow enterprises to come up and invest on their preexisting project. For me the best method as of now which avoid tremendous loss is the STO or the security token offering which has more sensitve approach in raising funds and pretty well occupied by the investors.

[Zed0X]

I think it has no difference in terms of a normal ICO. It's just that they allow enterprises to come up and invest on their preexisting project. For me the best method as of now which avoid tremendous loss is the STO or the security token offering which has more sensitve approach in raising funds and pretty well occupied by the investors.

Point taken. The main difference is that established companies raising funds thru ICOs already has that wide business network and that market. Normal/standard ICOs and and STOs which are both start ups do not have that yet.

[gurunanakji777]

Reverse ICO seems good to me If existing enterprise launch  their own cryptocurrency tokens through crowdsourcing. If your above statement is true I believe this would be a much better market than regular ICOs. Investors will have more believe on Reverse ICOs and they will invest more because of less chance of getting scammed.

[masterrex]

I recently encountered this term "Reverse ICO" which is defined as:

Reverse initial coin offering (ICO) is a method used by existing, established real-world businesses to raise funds and get into cryptocurrency. These enterprises have existing products and/or services, and they cater to real world customers. Essentially, reverse ICO acts as an initial public offering (IPO) allowing an existing enterprise to launch cryptocurrency tokens and seek funds through crowdsourcing.

- Source

Basically, it is a crowdfunding done not by a start up project but by an established project. I think this is an attractive investment model as it eliminates many risks involved in many regular ICOs like team capability to develop and market the product.

Would you invest in this type of projects?

Yes I think it is the same method used by Multiven Platform and its currently implemented the reversal ICO and launched its (MOM) its a marketplace Multiven is an Existing Company that doing and ICO in the Early part of 2018!

[ZionRTZ]

Well that is something new to me as well. Up until now, I have only known of regular ICOs and the STOs as crowdfunding model. For investors, that is definitely going to be attractive. If more established businesses go for this reverse ICOs, then we may see a sharp decline of blockchain start up projects.

[88percent]

Well that is something new to me as well. Up until now, I have only known of regular ICOs and the STOs as crowdfunding model. For investors, that is definitely going to be attractive. If more established businesses go for this reverse ICOs, then we may see a sharp decline of blockchain start up projects.

Yeah, I just know about reverse ICO. It is a new name for me,  I still don't really know well about this kind of token sale. Can you explain how can reverse ICO model can lead to sharp decline to blockchain start up projects?

[khufuking]

To be honest, I think this kind of ICO is totally fail and it is just a way to scam money in a legit way, I already participated in a couple of projects like this and the results were disaster they are basically raise money that they will not use in any development because they already have 100% perfectly working product just by throwing in Crypto words does not give them the right to collect millions of dollars.

I am only okay with this if only they do STO, but collecting millions of dollars and give us useless Tokens that their product does not even need is a big no.

[PhiliPPs]

It is quite possible that I would try to invest in such a project, and it seems to me that this is an acceptable fund-raising model, and most importantly the result will most likely be much better than with ICO!

[MVT$]

To be honest, I think this kind of ICO is totally fail and it is just a way to scam money in a legit way, I already participated in a couple of projects like this and the results were disaster they are basically raise money that they will not use in any development because they already have 100% perfectly working product just by throwing in Crypto words does not give them the right to collect millions of dollars.

Can you give us a list of those projects that did a reverse ICO?

I am only okay with this if only they do STO, but collecting millions of dollars and give us useless Tokens that their product does not even need is a big no.

So this will be called something like reverse STO?
What difference that would make if they will not use it in any development because they already have 100% perfectly working product as you mentioned?

[ZionRTZ]

Well that is something new to me as well. Up until now, I have only known of regular ICOs and the STOs as crowdfunding model. For investors, that is definitely going to be attractive. If more established businesses go for this reverse ICOs, then we may see a sharp decline of blockchain start up projects.

Yeah, I just know about reverse ICO. It is a new name for me,  I still don't really know well about this kind of token sale. Can you explain how can reverse ICO model can lead to sharp decline to blockchain start up projects?

We've already seen or read a lot of news about numerous start up projects fail to deliver their promised product or failed to land some needed partnership to move forward.

If more of these established projects run a reverse ICO, would you still start up projects over them?