ICOs: The Solution To Boosting Investments In Post-Brexit UK
Getting a full grasp of what ICOs are will require a brief understanding of Brexit and the machinations leading to its creations but even more importantly, the ripple effects that this has brought into existence.
Brexit came into existence in 2016 and it was as a result of a voting process in the United Kingdom that called for a Great Britain that would operate outside the auspices of the European Union. The final decision was made after a referendum that led to the Conservative Prime Minister, David Cameron leaving his post in order to garner support for the move. Britons chose to leave the regional block and Brexit came into existence with 51.89% of the votes as opposed to the 48.11% garnered by the ‘remain’ option.
ICOs – A new means of raising funds
A situation of this magnitude is bound to have effects on different sectors of the economy and it brought about a tricky scenario for companies based in Great Britain. After the decision to move the United Kingdom out of the European Union, these companies are faced with having to locate new cities in the EU where they can relocate to and continue their business in.
There has been quite a lot of uncertainty from different circles following the new rules and laws and this has made it hard for new investors to get funding for their projects. That is the reason why ICOs came into existence. Known as Initial Coin Offerings in other circles, ICOs bring about a new avenue for funding by creating a token. Businesses employ this when they are making plans to fund a new project.
A renowned ICO expert who goes by the name Przemek Skwirczynski, had this to say: cryptocurrencies have become an excellent way to by-pass the obscurities that surround the Brexit deal so they can maintain their investment channels. For now, the cryptocurrency is still a new concept to many, hence it is being operated on a small scale, but it is quite obvious that this is going to be the main source for financing businesses in the nearest future.
A lot of people do not know that the term Initial Coin Offering means. But if you are conversant with the idea of a digital currency, you will have a much easier time understanding this concept.
2017 – The rise of ICOs
2017 saw a greater use of ICOs as means of funding various businesses worldwide. Statistics say a whooping amount of $3.7 billion was invested in the form of ICOs. As at 31st Dec 2017, the world recorded a total of 235 ICOs. That same year, the month of Sept also saw the highest investment of up to $1 billion in ICOs.
Another interesting thing is that new regulations are now helping to change a lot of things as it regards the use of ICOs as an investment source for businesses. This move is likely to encourage the United Kingdom to ease up in its policies against the ICOs. This is because the ICOs will help make up for the economic losses already caused by the Brexit deal.
Based on a statement made by Adams Marshall, the director of British Chambers of Commerce the uncertainty of the Brexit deal is seriously hampering the investment opportunity of most businesses in the UK.