Initial coin offering and Private equity: Difference between pages

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Initial coin offering is a high-risk investment scheme in which investors receive interest in cryptocurrencies.
Equity and other forms of capital for privately owned firms with high growth potential.




The European Securities and Markets Authority (ESMA) has warned investors that there is a “high risk of losing all of their invested capital as ICOs are very risky and highly speculative investments”.
2.


ESMA has also noted that ICOs are vulnerable to the risk of fraud or money laundering.
Firms or individuals who make investments in such firms, sometimes abbreviated to PE.




ESMA points out:
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“The price of the coin or token is typically extremely volatile and investors may not be able to redeem them for a prolonged period.
The equity of a privately owned company.
 
Another key risk stems from the fact that, depending on how they are structured, ICOs may fall outside of the scope of EU laws and regulations, in which case investors cannot benefit from the protection that these laws and regulations provide.”
 
 
Turning to issuers, however, ESMA says that some forms of ICOs may be structured in such ways as to be subject to the same regulations as more standard financial instruments.
 
ESMA notes that it is “likely” that firms behind ICOs with those features are conducting “regulated investment activities” – in which case, “they need to comply with the relevant legislation”.
 
 
Initial coin offerings are sometimes also known as initial public coin offerings (IPCOs).




== See also ==
== See also ==
* [[Cryptocurrency]]
* [[3i]]
* [[European Securities and Markets Authority]]
* [[Alternative Credit Council]]  (ACC)
* [[Financial instrument]]
* [[Association for Financial Markets in Europe]]  (AFME)
* [[Invested capital]]
* [[Business angel]]
* [[Token]]
* [[Capital markets union]]  (CMU)
 
* [[Co-investment]]
 
* [[Entrepreneur]]
==External links==
* [[Equity]]
 
* [[General partner]]
[http://www.esma.europa.eu/sites/default/files/library/esma50-157-828_ico_statement_firms.pdf ESMA statement November 2017]
* [[Industry agnostic]]
* [[Limited partner]]
* [[Liquidity event]]
* [[Listed company]]
* [[Listing]]
* [[PIPE]]
* [[Private]]
* [[Private equity house]]
* [[Taking private]]
* [[Trade sale]]
* [[Venture capital]]


[[Category:Investment]]
[[Category:Investment]]
[[Category:Financial_risk_management]]
[[Category:Long_term_funding]]
[[Category:The_business_context]]

Revision as of 03:47, 6 February 2024

1.

Equity and other forms of capital for privately owned firms with high growth potential.


2.

Firms or individuals who make investments in such firms, sometimes abbreviated to PE.


3.

The equity of a privately owned company.


See also

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