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BUSINESSES NEVER FIT WITH ICO

0. (Conditional) Operate a serious and long-term business.

ICO causes almost no risk if you have any concern around the sustainability of your business and would like to run away to the underground world and spend your rest life after getting money with ICO.

In contrary, ICO would bring critical reputation risks to your business if you would like to make your business surviving long term.

To make people disappointed with your ICO, you would face fatal problems with your main business.

1. Have a plan to be listed in a stock exchange in Japan.

It is heard that stock exchanges in Japan like Tokyo Stock Exchange show its policy not to allow a company which has done ICO to be listed.

2. Have nothing to execute the plan in a white paper.

You can see many of scammers in this space. They do nothing intentionally.

Even a serious project has same kinds of issues against its will.

For instance, your company would be a middle-sized company in the gaming industry and have never done a platform business.

If your company would plan to build a versatile trading platform for virtual items with tokens distributed publicly in ICO, the success rate of the concept is extremely low.

The reason why is simple.

Meaningful success for this sort of business needs millions of userbase and ICO is not a silver bullet like bringing such amount of userbase to you.

Actually, many projects like the followings are based on their huge userbase and they should be strong competitors to your project.

WAX: 2 millions of transactions in the service called OPSkins brought the WAX team to execute ICO.

BUFF: The project is based on the service called Overwolf installed by millions of PC gamers.

Achieving those amounts of users should be almost impossible only with ICO.

3. Have a limited lifespan.

As you know, common ICOs have semipermanent lifetimes for better or worse.

So ICO has bad chemistry with a fixed term project.

However, many exceptions are there with this condition.

One solution is making the term for tokens traded publicly limited.

Apex Token Fund shows its plan to make its token destroyed after its liquidation for the fund’s assets and the term would be between 24 and 36 months after the tokens issued.

Selling token simply without ICO could be another option.

You can sell your tokens with your own smart contracts and the tokens would be exchanged in distributed exchanges (DEX).

Your responsibility would not be so tough compared to be listed in public exchanges.

 

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ICO Consulting

Glopa Inc. has been connected with one of the most successful ICO consultants called BlockchainIL and helping its projects like Zeex or Mobilechain mainly for introducing them to Japanese institutional investors legally.

As it may be known, BlockchainIL has many resources like designing tokens or inviting strong advisors and we can take the advantages like those.

However, we had not moved to help Japanese Companies to execute their own ICO.

One of the reason is that the mission of Glopa Inc. is “Do the right thing”.

We believe that Japanese FSA has been progressing the right way and the regulations around ICO should be defined concretely in this 12 months.

So our first priority had been waiting for the new regulations issued by Japanese FSA.

On the other hand, kinds of ‘offshore’ schemes for making ICO by a Japanese company is not illegal in every aspect if it fulfills the required conditions.
It’s just like the schemes with traditional financial products like funds, securities or bonds.

So some Japanese companies would like making ICOs with offshore schemes, not waiting for the regulations issued by Japanese FSA.

In addition, some consulting companies without any expertise started to force some Japanese companies to execute ICOs.

We found that this could be problems for those kinds of companies and we can help those companies to do the right things for them including not doing their ICOs.

Once we find the ICO should make sense, we can help it like the followings and the ICO should be more successful.

  • To design tokens, blockchains or smart contracts more sophisticated.
  • To invite more strong advisors both in the target business industry and the cryptocurrency industry.
  • To write the white paper more clearly with the languages like English, Japanese, Chinese, and Russian.
  • To secure all processes to be compliant with every law in the related countries.

That’s our insight for this market.

Any feedback to Glopa Inquiry is welcome!

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WHAT WE NEVER DO

It’s not a short story if we would start to mention about our capabilities made of our strong connections and experiences all over the world.
So we would like to tell what we never do on this page.

Sell tokens to retail investors publicly.

Although an activity like a seminar to gather many public audiences to sell the tokens by Japanese residents is obviously illegal, you can see many of those in every city like Tokyo, Osaka and etc…

Some of sales representatives in those kinds of events claim “You can make yourself rich with this token!”.

This is the totally illegal way in Japan.

We have had private meetings with institutional investors when we would help to sell ICO tokens. This is is the only legal way for selling tokens as Japanese residents at this moment.

Of course, you can take the way like above if you are not a Japanese resident.

We hardly recommend doing that.

Push every company to execute ICO.

We have our own methodology to pick a company or a business for ICO.

On the other hand, there are businesses which never fit with ICO.

We would like to offer other fundraising ways to the companies like those.

See also: BUSINESSES NEVER FIT WITH ICO