UK Companies Could Use ICOs to Overcome Brexit Investment Slowdown
The United Kingdom has witnessed an investment slump within the drawn-out Brexit procedure, but one crypto specialist says UK companies may use ICOs to conquer this circumstance.
Way back in June 2016, the people of the United Kingdom voted to leave the European Union at a movement called Brexit. Recently formed authorities invoked Article 50 to depart the EU eight weeks afterward. While the island country has not sunk to the sea over Brexit, there’s been a downturn in investments made into UK companies across the lingering confusion and uncertainty of the way, or even though, the true procedure will execute. It has had considerable effect, but a crypto specialist has come forward and indicated that UK companies could begin their very own ICOs to conquer this investment slump.
Uncertainty Clouds the Issue
If there’s 1 thing which businesspeople despise, it is uncertainty. Firms want to make decisions based on hard information, and strategies are laid out beforehand that take in each probable standards that may have an effect. (At the very least wise businesses operate in this manner.)
After all, who would like to put their money into a business once the rules could abruptly change a couple of months in the future?
Przemek Skwirczynski, a member of ICO Rocket, has an answer for this issue. He considers UK businesses must tap into the riches made by the Bitcoin flourish with ICOs of their own. He states:
Cryptocurrencies offer companies a chance to overcome the uncertainty surrounding the Brexit deal and continue to receive investment. Currently this is small scale but as you see the interest in ICOs picking up I am hoping this will become a very mainstream way of financing.
Are ICOs the Answer?
It needs to be pointed out that Skwirczynski has a vested interest in boosting ICOs. The company he is attached to, ICO Rocket, specializes in assisting companies which aren’t well-versed from the crypto world to run and prepare an ICO.
He goes on to say:
Effectively a company will be issuing their own coin and then people will be investing in that and typically this kind of coin will have a higher rate of growth in terms of its value than the more established ones, like Bitcoin or Ethereum … It is effectively spreading the wealth that has been created by the appreciation of Bitcoin or Ethereum … This is a very positive outcome of this kind of this whole boom.
Skwirczynski states ICOs could enable users to back individual jobs they support. An example of such service is helping a picture get funded, where he goes to include:
I don’t see why this could not be applied to the film industry where you can create a coin for a movie production and then have a film being financed in that way and that will be very useful for the industry and the viewers … At the moment film production is really dominated by an oligopoly on a worldwide scale … Doing this kind of disruptive activity where you are breaking up the oligopoly that have got to have a positive effect for pretty much everyone.
There are a number of pros and cons to UK companies starting ICOs to drum up investment capital. On the other hand, ICOs are often very profitable. SingularityNET increased $36 million throughout their ICO, which lasted all of one moment before the restricted amount has been attained. Allowing ICOs inside a nation is an investment bait, which is something which the nation of Belarus totally comprehends. Belarus recently signed into legislation that earnings and profits obtained from crypto-based actions will likely be tax-free until 2023.
The disadvantages to UK companies launching ICOs consist of ongoing regulatory efforts and shareholders. Their programs are created from the ground up to make the most of this blockchain and the capability to use components. But most standard companies aren’t. Will present investors be enthusiastic about a lot of crypto fans coming to board? What construction could be put into the position to provide benefits to token holders and also to investors? Would token holders receive a vote? A double system might emerge, stocks and cryptocurrency, which might or might not operate well together.
The government is worried men and women are using crypto to make money or prevent paying taxes. Again, this can be much more doubt.
All in all, the notion of utilizing ICOs to counteract Brexit investment slump is an interesting one, and it can get the job done. The key is figuring out all the details in executing them for present companies and ensuring shareholders are appeased.