why don't ICOs accept fiat? - page 3.

chutchmcgillicutty

sr. member

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Merit: 251

Quote from: allycn on February 25, 2018, 08:45:16 PM

It may have to do with the idea of remaining anonymous. If you pay via Credit Card / wire transfer you are leaving a trail to your crypto funds. It could also be for some of the legal issues you point out.

Although, I've seen some ICOs accept FIAT via credit card and wire transfers, some require a very high investment to accept those payment methods. The issue for me (as I normally invest a small amount in ICOs) was the high fees. Credit card commission could be up to 25% and wire transfers in my country are expensive, so if you are doing a small investment it is not worth it. The best option for me has always been ETH (faster transactions and low commissions).

Hide your trails haha ^

don't send ETH to ICOs from your wallet that is directly connected to exchanges.

allycn

full member

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Merit: 110

It may have to do with the idea of remaining anonymous. If you pay via Credit Card / wire transfer you are leaving a trail to your crypto funds. It could also be for some of the legal issues you point out.

Although, I've seen some ICOs accept FIAT via credit card and wire transfers, some require a very high investment to accept those payment methods. The issue for me (as I normally invest a small amount in ICOs) was the high fees. Credit card commission could be up to 25% and wire transfers in my country are expensive, so if you are doing a small investment it is not worth it. The best option for me has always been ETH (faster transactions and low commissions).

kiw_91

newbie

Activity: 291

Merit: 0

Accepting FIAT bounds that company / person to a certain level of law. For example, Malaysian government does not allow the receival of FIAT deposits except banks. This is stated in the Banking and Financial. Institutions Act 1989. Unless you are a public listed, you are forbiden to receive FIAT. Its easier for them to receive crypto as not many country regulates this. And its harder for the government to audit. Wink

varandas

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there`s a lot more work to do, papers, accountants)

xcbjsuw

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Quote from: Deylandra on February 25, 2018, 08:11:38 PM

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?

Not all ICO can accept FIAT, maybe if using FIAT is too complicated. that's my opinion.
Anyways ,. easier to use crypto.

cryptosifu

sr. member

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There are a lot of ICO's that are on the Ethereum platform which is on a smart contact. Ethereum will be the only cryptocurrency that is accepted for these ICO's and you'll receive your tokens instantly.

Ix

full member

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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.

Deylandra

jr. member

Activity: 54

Merit: 1

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?

Topic: why don't ICOs accept fiat? - page 3. (Read 317 times)