Topic: What are backed tokens? What are the obligations? (Read 182 times)
Recently ive been very intrigued with this ICO or token sales model. When their claims are that these tokens are being backed, what do they actually mean? The easier ones to comprehend are those with applications for it say Bancor or Status where you can actually use the tokens in exchange for services. The ones i dont understand are those that represents ownership. Are they actually legally binding? Like one that i came across where you buy coins released by a media company and their profits will be given to token holders. How do we actually know if they made money? And how is the investor protected from wrongdoing or undertable auditing on the companys part?
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