Topic: why don't ICOs accept fiat? - page 2. (Read 317 times)
ICO launchers find it much easier and hassle free to collect the required funds in cryptos.Even the scam project owners find it easier to run with the collected cryptos if the project fails to raise the required funds without leaving any traces for government sectors.
Since ICO are held in the crypto community, it is oriented to investors with cryptocurrency, but this is not always the case, I have repeatedly met that projects accept and fiat funds from the investors, it depends on the project itself, as he decides to do.
Some ICOs accept fiat, but there are not many such.
By the way, perhaps you have not heard, but it will soon be possible to hold the ICO taking cash
This will be possible thanks to the Dether partnership with Zilla
https://twitter.com/dether_io/status/963793453619478529
By the way, perhaps you have not heard, but it will soon be possible to hold the ICO taking cash
This will be possible thanks to the Dether partnership with Zilla
https://twitter.com/dether_io/status/963793453619478529
Or you could raise money ethically and legally.
I could always move from California to Switzerland.
That seems to be a popular place for crypto headquarters.
But it costs like $20 for a 6 piece chicken nugget meal at McDonald's. If it weren't for that.
That seems to be a popular place for crypto headquarters.
But it costs like $20 for a 6 piece chicken nugget meal at McDonald's. If it weren't for that.
I've been researching ICOs and I'm wondering why no ICOs appear to accept fiat?
I understand credit cards have the issue of chargebacks, but since an ICO often distributes the coins at a later date, they could presumably issue the coins after the chargeback period has ended.
They could also accept checks, bank wires, transfers, Zelle, etc.
Since many people don't have access to cryptos, I would think accepting fiat would increases the chances of success for their ICO.
I'm assuming it must involve legal reasons such as upsetting the Securities and Exchange Commission, or the potential of being classified as a money service business (MSB) since changing fiat for crypto could put you in that category.
Since many ICOs appear to be either scams or little more than concepts with little chance of success, perhaps it's also to prevent burned investors from taking legal action later if the project fails, since they traded one token without intrinsic value for another token without intrinsic value instead of cash, thereby making a lawsuit more difficult in claiming damages, etc.
Is there anything I'm missing?
If you wanna do more effort and then you will be seeing some icos were accepting fiat payment through sire transaction to the bank. But the majority of icos saw it as a difficult way to do. If they can raise money through cryptocurrency and why do they need fiat? Honestly both has the same potential. but in the crypto you were getting more security because all of things got encryption. I understand credit cards have the issue of chargebacks, but since an ICO often distributes the coins at a later date, they could presumably issue the coins after the chargeback period has ended.
They could also accept checks, bank wires, transfers, Zelle, etc.
Since many people don't have access to cryptos, I would think accepting fiat would increases the chances of success for their ICO.
I'm assuming it must involve legal reasons such as upsetting the Securities and Exchange Commission, or the potential of being classified as a money service business (MSB) since changing fiat for crypto could put you in that category.
Since many ICOs appear to be either scams or little more than concepts with little chance of success, perhaps it's also to prevent burned investors from taking legal action later if the project fails, since they traded one token without intrinsic value for another token without intrinsic value instead of cash, thereby making a lawsuit more difficult in claiming damages, etc.
Is there anything I'm missing?
Because they can't.
Most of the ICOs remain unregulated, for the simple reason that they can't be regulated and it's going to be hard time for them to search for a country that is willing to accept them.
More then that, it's going to be even harder to find a bank that will accept them, as most of the banks won't because they will be afraid of money laundering.
Accepting fiat for ICOs means that you are legal, and being legal in the crypto wotld is really hard.
Most of the ICOs remain unregulated, for the simple reason that they can't be regulated and it's going to be hard time for them to search for a country that is willing to accept them.
More then that, it's going to be even harder to find a bank that will accept them, as most of the banks won't because they will be afraid of money laundering.
Accepting fiat for ICOs means that you are legal, and being legal in the crypto wotld is really hard.
I agree with your exposure
this has been a very long discussion. and I do not think it will happen to do crypto transactions with fiat, because of which countries are willing to accept and banks are willing. like what you say.
Because they can't.
Most of the ICOs remain unregulated, for the simple reason that they can't be regulated and it's going to be hard time for them to search for a country that is willing to accept them.
More then that, it's going to be even harder to find a bank that will accept them, as most of the banks won't because they will be afraid of money laundering.
Accepting fiat for ICOs means that you are legal, and being legal in the crypto wotld is really hard.
Most of the ICOs remain unregulated, for the simple reason that they can't be regulated and it's going to be hard time for them to search for a country that is willing to accept them.
More then that, it's going to be even harder to find a bank that will accept them, as most of the banks won't because they will be afraid of money laundering.
Accepting fiat for ICOs means that you are legal, and being legal in the crypto wotld is really hard.
I agree with your exposure
this has been a very long discussion. and I do not think it will happen to do crypto transactions with fiat, because of which countries are willing to accept and banks are willing. like what you say.
There are some who accepts fiat but most of them accepts BTC or ETH because the value grows in the future.
If you are accepting money/fiat/crypto/seashells as part of some kind of investment in your company, you fail the Howey test.
It's my understanding that if the ICO passes the "Howey test" the SEC is likely to leave you alone.
I can't find anything about them caring whether you receive fiat or Ether unless it's an "unwritten rule."
Perhaps I'm just paranoid and I should just accept fiat dollars in addition to Ether.
I can't find anything about them caring whether you receive fiat or Ether unless it's an "unwritten rule."
Perhaps I'm just paranoid and I should just accept fiat dollars in addition to Ether.
Well more specifically I'm building/researching an ICO for my company based in California.
Color me shocked.
Quote
The SEC of course has not finalized the rules on ICOs and so there are a lot of grey areas. I just wonder if not accepting fiat is one of those "unwritten rules" to avoid upsetting the SEC.
The SEC has made it pretty clear that using something other fiat does not exempt you from securities laws.
Because they can't.
Most of the ICOs remain unregulated, for the simple reason that they can't be regulated and it's going to be hard time for them to search for a country that is willing to accept them.
More then that, it's going to be even harder to find a bank that will accept them, as most of the banks won't because they will be afraid of money laundering.
Accepting fiat for ICOs means that you are legal, and being legal in the crypto wotld is really hard.
Most of the ICOs remain unregulated, for the simple reason that they can't be regulated and it's going to be hard time for them to search for a country that is willing to accept them.
More then that, it's going to be even harder to find a bank that will accept them, as most of the banks won't because they will be afraid of money laundering.
Accepting fiat for ICOs means that you are legal, and being legal in the crypto wotld is really hard.
It is not that ICO does not accept the law, just because there is no law to restrict ICO, so there are serious problems in the current ICO, and many projects are just a fraudulent project.
Well more specifically I'm building/researching an ICO for my company based in California.
Most of the participants are likely to be from the United States.
Should I only accept Ether? I should I offer the entire rainbow of payment options?
I don't have any issue accepting credit cards, checks, wire transfers, Zelle, or 40 plus alt coins in exchange for the ICO tokens.
It makes it slightly more complicated but not by much. My general assumption is that the more payment options the better.
It just smells like there is a strong legal reason NOT to accept fiat. However, I can't find any specific rules in United States law that forbides it, except possibly the Money Service Business laws.
The SEC of course has not finalized the rules on ICOs and so there are a lot of grey areas. I just wonder if not accepting fiat is one of those "unwritten rules" to avoid upsetting the SEC.
Thus I suppose I'll just play it safe and refrain from accepting fiat.
Most of the participants are likely to be from the United States.
Should I only accept Ether? I should I offer the entire rainbow of payment options?
I don't have any issue accepting credit cards, checks, wire transfers, Zelle, or 40 plus alt coins in exchange for the ICO tokens.
It makes it slightly more complicated but not by much. My general assumption is that the more payment options the better.
It just smells like there is a strong legal reason NOT to accept fiat. However, I can't find any specific rules in United States law that forbides it, except possibly the Money Service Business laws.
The SEC of course has not finalized the rules on ICOs and so there are a lot of grey areas. I just wonder if not accepting fiat is one of those "unwritten rules" to avoid upsetting the SEC.
Thus I suppose I'll just play it safe and refrain from accepting fiat.
I think it somehow depends on the companies service scope. If a company's market is international and without borders, using a transaction media that is accepted by all can reduce transaction costs between currency transfers.
The other point is that some countries forbid the purchase of some cryptocurrency (with fiat), so by trading with cryptocurrencies, they can by some content avoid the regulations.
The other point is that some countries forbid the purchase of some cryptocurrency (with fiat), so by trading with cryptocurrencies, they can by some content avoid the regulations.
I've been researching ICOs and I'm wondering why no ICOs appear to accept fiat?
I understand credit cards have the issue of chargebacks, but since an ICO often distributes the coins at a later date, they could presumably issue the coins after the chargeback period has ended.
They could also accept checks, bank wires, transfers, Zelle, etc.
Since many people don't have access to cryptos, I would think accepting fiat would increases the chances of success for their ICO.
I'm assuming it must involve legal reasons such as upsetting the Securities and Exchange Commission, or the potential of being classified as a money service business (MSB) since changing fiat for crypto could put you in that category.
Since many ICOs appear to be either scams or little more than concepts with little chance of success, perhaps it's also to prevent burned investors from taking legal action later if the project fails, since they traded one token without intrinsic value for another token without intrinsic value instead of cash, thereby making a lawsuit more difficult in claiming damages, etc.
Is there anything I'm missing?
I understand credit cards have the issue of chargebacks, but since an ICO often distributes the coins at a later date, they could presumably issue the coins after the chargeback period has ended.
They could also accept checks, bank wires, transfers, Zelle, etc.
Since many people don't have access to cryptos, I would think accepting fiat would increases the chances of success for their ICO.
I'm assuming it must involve legal reasons such as upsetting the Securities and Exchange Commission, or the potential of being classified as a money service business (MSB) since changing fiat for crypto could put you in that category.
Since many ICOs appear to be either scams or little more than concepts with little chance of success, perhaps it's also to prevent burned investors from taking legal action later if the project fails, since they traded one token without intrinsic value for another token without intrinsic value instead of cash, thereby making a lawsuit more difficult in claiming damages, etc.
Is there anything I'm missing?
some ICOs accept fiat bro. because they are sure from their project. there are so many ICOs that accept fiat you can search and find them. but i most of cases BTC and other altcoins traditional to participating in ICO projects.
You wrong, there are some ICO that still accepting fiat to buy their tokens.
but it is not much, and may have an expensive minimum purchase.
but why dont you convert your fiat to cryptocurrency first ?
but it is not much, and may have an expensive minimum purchase.
but why dont you convert your fiat to cryptocurrency first ?
Accepting fiat requires some form of connection to the traditional infrastructure. AKA much easier to track and find people taking your money. I don't pay any attention to ICOs so I don't know what percentage are shady people with prebuilt websites, but I assume those types sure as hell wouldn't want any real identity connected to them. As for the rest who pretend to have good intentions, it actually would require effort to accept fiat instead of copying and pasting the exact same thing thousands have done before them.
good point
There are more regulations related to accepting fiat, even if an ICO claims it is not a security. For example, KYC/AML requirements for accepting fiat vs. virtual coins.
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