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Why IPS is better than IPO and ICO

 

 

Name

IPO
(shares)
Initial Public Offering

ICO
(tokens)
Initial Coin Offering

IPS
(shares and tikens)
Intellectual Property Sharing

The essence of the methods

This is an abbreviation formed from the initial letters Initial Public Offering, and translated as “initial public offering”. Such a term is well established.
It is understood as the initial mass sale by the issuer of its securities, its “debut” on the stock exchange, after which it became familiar to financial and business circles. Upon completion of the IPO, the organization becomes a public company, and its shares become available for purchase to an unlimited number of investors.

ICO - this is a new form of investment, the emergence of which is associated with the formation of cryptocurrencies. The term itself is an abbreviation of Initial Coin Offering, the literal translation is “initial coin offering” or “initial coin offer”. Capital is raised through a preliminary sale at the price of the so-called tokens set by the ICO organizer.

Sale of shares of intellectual property rights to investors and participants in exchange trading

Assets for sale

Stocks
Bonds

Tokens

Shares (IP-shares)
Tokens (IP-tokens)

Place of sale

Stock exchanges
Off exchange

Blockchain

IP-Maris Exchange

Issue procedure

Registration of the prospectus in an authorized state body

Fundraising for ICOs is carried out using smart contracts. More often than not, smart contracts generate tokens of the ERC20 standard on the Ethereum blockchain, but this is not the only option

Registration of a package of documents
on the exchange

Timing of the launch of the project (before receiving the first money)

1-2 years

3-6 months

1-2 months

Benefits

Attracting less expensive than credit or bonds capital that does not need to be repaid. For example, GM received $ 23 billion in 2010, Facebook two years later - $ 18.4 billion. Image enhancement through listing on well-known exchanges. In London, for example, VTB, Megaphone were located. In New York - Twitter. The emergence of fame, brand recognition, an increase in customer flow. So, before the IPO in 2011 on NASDAQ, Yandex was well known only in our country. The increase in the liquidity of shares due to open sale on the stock exchange. Protection against raiding, because with an impressive number of minority owners it is difficult to collect a block of shares to get a decisive vote. Strengthening the transparency of the issuer's activities and documentation and increasing confidence in it from potential partners and creditors. Attracting well-known top managers due to the availability of options. The opportunity to profitably sell part or all of the business at the peak of the value of shares

1.Pre-sale of cryptocurrency at a price that should increase significantly in the future. This is what motivates a huge number of people to invest in a “perspective”.
Benefits:
At the moment, ICO is practically not subject to state regulation.

1. Getting royalties

2. Quick sale,

3. Having the ability to convert an IP token to an IP share

Legislative framework

Regulated by law

Not regulated by law

Regulated by law

The risks

Compliance with a considerable number of conditions and rules, one of which is the size of the company. The “threshold” for entering well-known venues is $ 50 million, an acceptable amount for attracting serious organizing partners is from $ 1 billion.

Duration: on average, an IPO takes place within 1-3 years. High costs: underwriter services, advertising and information support, registration fees, etc. The publication of detailed information about finances and production processes, which may become the property of competitors.

Decreasing quotes, which lowers the value of the company and may threaten to build up a package of securities in unnecessary hands and a partial loss of control by the original owners. Problematic behavior of minority shareholders and a number of other risks

.

1.ICO does not give their acquirer a share in the company, nor does it give any guarantees for the successful increase of investor capital
2. The modern reality is that scammers began to use such a high demand for ICOs
3. Another negative side of the current ICOs is that due to the large number of people who want to invest in ICOs and the limited time of crowdsale of tokens, there is a heavy load on the Ethereum network. This greatly affects the exchange rate.
4. Developers do not give a high-quality presentation about the product and just splurge. You need to understand that ICO is not a magic box where you can put money and pull out many times more over time.

 

 

Fundamental differences (novelty)

 

Not regulated by the legislation of the Russian Federation