Why ICO & Why ICO in Ireland?

Cosgrove Gaynard Solicitors

Initial Coin Offerings (ICO's) are not just for technology companies . They are often the beginning of a digital revolution for existing Companies which are already established In their field whether it be healthcare, insurance, property or another industry. Despite some bad press, the tightening of regulation in jurisdictions such as in the US, and indeed Facebook and Twitter banning advertisements , money has been pouring into the ICO market with $3 billion raised through ICOs in the first two months of this year. This is half the value of all funds raised throughout 2017, according to Coindesk data.

Initial Coin Offerings (ICO's) are not just for technology companies . They are often the beginning of a digital revolution for existing Companies which are already established In their field whether it be healthcare, insurance, property or another industry. 

Despite some bad press, the tightening of regulation in jurisdictions such as in the US, and indeed Facebook and Twitter banning advertisements , money has been pouring into the ICO market with $3 billion raised  through ICOs in the first two months of this year. This is half the value of all funds raised throughout 2017, according to Coindesk data.

Why choose to ICO?

1. Maintain control 

VC funding is also pouring into ico's pre sale at present and Ireland has one of the highest rates of vc funding in this regard. However in the traditional model of venture capital, investment is usually given in return for a share/ equity in a business and indeed a seat on the board. ICOs are completely the opposite in terms of corporate governance and the purchase of tokens does not  provide a purchaser with any such rights. For a company founder , this might be the single most attractive reason to use the ico model . 

 

2. Publicity - user engagement 

ICO''s currently obtain a huge amount of publicity and this is even more so if it is an established company. Telegram might be a prime example of this. People have the option to get involved even for a relatively small amount which should lead to good public engagement as investment is not limited to, what can be perceived, to be an elite few.  

We have seen companies raising 90% plus of funds in pre sale and proceeding with public ICO's for the remaining balance for PR benefits alone. 

 

Why ICO in Ireland? 

 

Right now Ireland is definitely one of the main locations being looked at when choosing where to ICO. The benefits of using Ireland :

 

1. Regulation  

Currently Ireland has not regulated ICO's . A discussion paper did recently issue from the government however the general feeling is that there is no immediate movement expected.  

2. Taxation 

A low corporate tax rate (12.5%) exists in Ireland which can be lowered even further by financial structuring depending on the international client and structure. 

This low rate is a major factor mentioned when speaking to our international clients.  

 

3. Workforce 

Ireland has a young technically skilled workforce which is deemed a major factor again when speaking with international clients. 

 

4.Ireland is English speaking 

 

5. Government bodies

THe IDA and Enterprise Ireland are two of the most capable organisations worldwide and can be of huge assistance to new businesses both here in Ireland and internationally.

 

5. Euro

Ireland is part of the Euro which, in theory, should lead to a more stable currency than sterling.

 

6. Technology history

Ireland has a long history of international tech companies setting up here beginning with the likes of Intel Hewlet Packard, IBM and lately we have seen the Grand Canal area of Dublin City becoming a technology hub with the likes of  Facebook , Google , Yahoo , PayPal & Linked in setting up here.  

7. Natural affinity 

Ireland had a natural affinity with a lot of international countries, in particularly America, who like to do business here. 

8. Expertise 

We have a large amount of blockchain start ups with innovation hubs such as the Dogpatch labs in the CHQ building, top rated ICO advisors coming from Ireland and indeed our own technology department expertise in guiding an ICO through what is essentially new and uncharted water for a new or existing company.

Should you like to contact us to discuss further, please contact our Susan Cosgrove by phone: 00353 (0)1 234 0044 or by email: scosgrove@cgsolicitors.ie

 

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