WISE on the rise!
October 29, 2018 (Investorideas.com Newswire) The initial coin offering (ICO) is an innovative crowdfunding model that allows startups to bypass traditional early seed investment.
Not all ICOs are created equal; there are at the very least two types of tokens.
It is difficult to discern what category an ICO token falls into which is why we are reviewing them.
Utility Tokens are simply app coins or user tokens. They enable future access to the products or services offered by a company. Therefore, utility tokens are not created to be an investment.
It is important to note that "utility token" is an organizational distinction-not a legal one. The SEC has not given official guidance on utility tokens, currently they are not subject to securities regulations.
A good example is Filecoin, which raised $257 million through the sale of tokens. These tokens allows users access to its decentralized cloud storage platform.
A Security Token is a broad classification that refers to any kind of tradeable asset, meaning that it derives its value from an external asset that can be traded. Through ICOs, investors have access to a wide variety of securities tokens, ranging from redeemable coins for precious metals to tokens backed by real estate.
Contrary to Utility Tokens, these tokens are subject to federal laws that govern securities.
In order for a financial instrument* to be dubbed a security and fall under the purview of the SEC (U.S. Securities and Exchange Commission), the instrument must meet these four criteria:
- It must be an investment of money
- With an expectation of profit
- In a common enterprise
- With the profit to be generated by a third party
These requisites are part of what is commonly known as the "Howey Test", where the registration and financial reporting requirements go along with regulations to protect investors from predatory scams.
It was Marco Santori, Cooley LLP Fintech Team Leader, who said that an arrangement is a security if it involves "an investment of money. And a common enterprise. With the expectation of profit, primarily from the efforts of others."
Why mention them?
Wise, is an innovative developer of analog-mixed-signal, system-on-a-chip (AMS-SoC) integrated circuits that empower IoT and mobile networks through blockchain technology while introducing a new concept, radio based IoT.
WISE will soon announce their own ICO, which is called the WRC Token (Wise Radio Token).
This will be a token generated with every radio transmission, and native to blockchain technology. WRC is created using wide range of sweeping radio frequencies that are encoded to achieve advanced security levels. The WRC opens an entire world of possibilities to provide IoT network features similar to mobile app stores, worldwide.
The technology that runs these transactions and how they take place are still a mystery, and it will remain like that until next month. Expect a full report on the whole WISE and its WRC Token this coming November.
This is the first token used by devices, not by people.
A teaser about what's coming in November has been released already:
* A "financial instrument" is a document or contract that can be traded in a market, that represents an asset to one party and a liability or equity to the other.
Genesis Exchange and Wallet App
GBT is a powerful cryptocurrency centralized / decentralized exchange which will include a broad range of services and benefits from cryptocurrency and blockchain markets development, while avoiding complications and risks arising from crytocurrency ownership, transfer, and exchange.
The powerful GBTDesk aggregator ensuring exchange of cryptocurrencies for fiat currencies under smart contracts without intermediaries is a key element of GBT.
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