In a previous piece, we spoke to you about Civil’s goal of revolutionizing the way that news is sourced as well as published. What you may not know is that their ambitions reach far beyond this already lofty goal, to the ICO space.
Over the course of 2018, it can be said that interest in the ICO fundraising model has been falling considerably, due to the global tightening of regulations around the space, which are often confusing.
In the face of what some critics are effectively calling the death of the ICO, Civic is proposing a bold maneuver. In short, they plan to open up their upcoming ICO to everyone who wants to participate in it, removing any barriers related to being an accredited investor.
As a recent article on the subject by Coindesk mentions, this would seem to almost openly call for government retaliation. On the other hand, if you take Civil’s reasoning for taking this action into account, the opposite could also be true.
Like other projects have done before them, Civil is reportedly sure that the token framework or the structure of their ICO is essentially the ideal in terms of legally conducting what can be called “an open token sale.”
Just like we have already suggested above, an open token sale is really nothing more than an ICO in which essentially everyone can participate. The kicker is: Civil did not create this framework and it has already been use by a project called FOAM, which aims to be the first decentralized world map.
In FOAM’s case, they seem to have avoided regulatory scrutiny so far, possible due to the fact that they have restricted any movement of FOAM tokens for the first 45 days after the project launched. In addition to this, users are prohibited from moving their tokens off of the platform at any time, until they have noted at least 10 points of interest on the world map, which would seem to incentivize actual usage of the platform.
While these do seem to be steps in the right direction in terms of moving ICOs away from being seen as simply speculative securities, it can be argued that the major concerns of regulators have still not been answered.
In essence, this appears to be a temporary fix, on the way to one that is more indicative of the space completely moving away from rampant speculation.
Time will tell if Civic proves to be the project that takes all of this a step further.
By: BGN Editorial Staff