Technology and economy are the two most important and dynamic pillars of development. With the rise in the use of blockchain and other distributive ledger technology, the economy has taken an upward turn through ease of financing and funding. Funding in the nature of Initial Coin Offerings (ICOs) and the likes are gaining magnitude due to their inherent flexible nature and convenience in contrast to the traditional Venture Capital funding. However, this mode of funding through the use of tokens is not all that it seems and engenders a number of plausible problems when compared to the traditional mode of funding. This article highlights both the pros and cons of using such mode of funding providing solutions to the major problems that are haunting the same. It also discusses certain alternatives to the ICOs which are recently being used in the funding industry. This article tries to provide a comprehensive answer to an ever important question about the viability and suitability of such a funding mechanism in a dynamic market.
Business Law Review