Malta to Propose ICO Definition Test

The proposed test will help to find out if the ICO's token is a security or utility token
16 April 2018   1687

The authorities of Malta have submitted a test that will clearly determine when a token issued through ICO is considered a security. This is reported by CoinDesk.

The Financial Services Authority of Malta published a consultation document and now accepts public comments on its contents. The document describes the so-called Financial Instrument Test, which would ultimately become part of its proposed Virtual Financial Asset Act (VFAA).

The agency reported that the methodology of the test is based on a discussion of a previous document published in November 2017, when this idea was presented for the first time.

The test includes 3 stages, which first of all will determine whether an asset based on distributed registry technology (DLT) can be classified as "virtual tokens" or utility-tokens that are not securities.

Virtual token is a DLT asset which has no utility, value or application outside of the DLT platform on which it was issued and that cannot be exchanged for funds on such platform or with the issuer of such DLT asset.
 

The Financial Services Authority of Malta proposal document

Tokens that belong to this category will not be regulated by the law "On virtual financial assets".

Assets that are traded on the secondary market will pass to the second stage of testing, where the token will be checked for compliance with various definitions of the security in European legislation, including tradable securities, money market instruments or financial derivatives.

If it turns out that the token corresponds to the definition of one of these assets, it will be regulated in accordance with the EU directive "On the markets of financial instruments".

A negative result in the second stage will allow the token to be admitted to the third stage of testing, at which the issue of token regulation will be decided in accordance with the Law on Virtual Financial Assets. At this stage, both the pan-European and the national criteria of Malta will be presented.

Proposed to cover all ICOs organized in Malta, the paper is currently open for public input until May 5, the agency said.

Algorand to Raise $60M in 4 Hour Tokensale

The project was founded by a MIT professor and a Turing Award winner Silvio Micali and is designed to solve the problems of scalability and consensus in the DLT
20 June 2019   2130

The blockchain-project Algorand, aimed at creating an “borderless economy ”, announced the successful completion of the  ALGO tokensale, during which it raised over $ 60 million, CoinDesk reports.

The campaign was held on the CoinList platform and was conducted in the format of the so-called “Dutch auction”, in which the highest price is first announced, after which it gradually decreases.

Simultaneously with the completion of the tokensale, it was announced the launch of the main network of the Algorand. The platform processes 1000 transactions per second with a delay time of less than 5 seconds, which, as noted, puts it on par with such major payment networks as Visa and Mastercard.

In his work entitled The Monetary Experiment: Algorand A Thesis For Algo Currency Markets, the head of Arrington XRP Capital, Michael Arrington writes that Algorand is a project where macroeconomics meets cryptocurrencies. He also notes that Algorand, as a blockchain-resistant Proc-of-Stake algorithm, is distinguished by a combination of advanced cryptography and a smart economic model.

The Algorand project was founded by a professor at the Massachusetts Institute of Technology and a Turing Award winner Silvio Micali. The main task of Algorand is to solve the problems of scalability and consensus in the blockchain.

As noted, the exact number of buyers who participated in the auction remains unknown, but because of high demand, the campaign lasted less than four hours. In total, 25 million ALGO tokens were distributed with a starting price of $ 10 and a closing price of $ 2.40.

Representatives of the project also stated that since tokens are distributed to customers' wallets and are not available on stock exchanges, there is no need to talk about any value of Algorand market capitalization.

Algos are being dispersed to wallet right now (for successful bids).  Therefore – there are non on exchanges. [Therefore, no market capitalization is available for Algorand, though some have speculated it sits around $6 billion.] Which is still a top 10.
 

Algorand Team

Earlier, the project announced plans to auction 600 million ALGO tokens per year, and in the first five years it is planned to release 10 billion tokens.

Also note that over the last year, Algorand raised $ 66 million in venture capital from investors such as Union Square Ventures and Pillar Venture Capital.