ICOs and Cryptotokens: A New Fundraising Asset Class—An Australian Perspective

Frontiers in Blockchain, Forthcoming

27 Pages Posted: 10 Apr 2019

See all articles by Adrian McCullagh

Adrian McCullagh

Griffith Law School

John Flood

Griffith University; Queensland University of Technology; Centre for Blockchain Technologies

Date Written: March 20, 2019


Most start-ups find it difficult to raise finance. In the last few years a new form of funding has emerged—the initial coin offering (ICO). ICOs provide investors with cryptotokens that often have multiple roles as stored value token, pure utility token, security token, and hybrid token. ICOs attempt to create involvement in projects without giving away equity. However, as ICOs have risen in number regulators have become more interested and sought to provide rules for their proper functioning. In this paper we argue that the regulators often overlook the advantages of ICOs in order to focus on their faults. We propose ICOs ought to comprise a new asset class with their own rules.

Note: This paper has an earlier iteration as a submission to the Australian Treasury Consultation on ICOs.

Keywords: ICO, cryptotokens, blockchain, security, regulation

JEL Classification: G18, K23, M13

Suggested Citation

McCullagh, Adrian and Flood, John A., ICOs and Cryptotokens: A New Fundraising Asset Class—An Australian Perspective (March 20, 2019). Frontiers in Blockchain, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3356210 or http://dx.doi.org/10.2139/ssrn.3356210

Adrian McCullagh (Contact Author)

Griffith Law School ( email )

Nathan Campus, GU
Nathan 4111

John A. Flood

Griffith University ( email )

Nathan campus
Nathan, Queensland 4111

HOME PAGE: http://https://experts.griffith.edu.au/18783-john-flood

Queensland University of Technology ( email )

Level 4, C Block Gardens Point
2 George St
Brisbane, QLD 4000

Centre for Blockchain Technologies ( email )

UCL CBT UCL Computer Science
Malet Place London WC
London, London WC1E 6BT
United Kingdom

HOME PAGE: http://blockchain.cs.ucl.ac.uk/john-flood/

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