ICOs Listed By Crowdfunding Platform Indiegogobr>
Crowdfunding website Indiegogo has announced that it will begin listing select number of initial coin offerings (ICO) in its platform.
The new sevice will help ICOs follow the law by registering them as securities in most cases. Small investors will be allowed to invest about $10,000 in most projects, and companies will be able to raise no more than $1 million from these investors, because of restrictions put in place by the 2012 JOBS Act.
“We want to bring a brand of trust to the entire industry, which we think will bring ICOs to the mainstream,” said Slava Rubin, one of the founders of Indiegogo.
The first project to use the service is the Fan-Controlled Football League (FCFL). FCFL wants to create professional sporting leagues where decisions are made entirely by fans. Formerly called Fanchise, the company previously raised more than $63,000 through an Indiegogo campaign. In 2015, the company purchased a slot in the 10-team Indoor Football League and launched its first team, the Salt Lake City Screaming Eagles.
For the next 10 days, FCFL will be conducting its token pre-sale. They are selling up to $5 million in FAN tokens and giving away bonus tokens (25% extra) as an added reward for early investor support. In early 2018, FCFL plans to enter the next stage of their ICO and sell their tokens publicly without any bonus.
FAN tokens are the power behind fan interactivity and engagement in the FCFL. All activity in the league relies on FAN tokens, from voting on which coach to hire to real-time play calling during the games. Each fan’s level of control will be directly proportional to their ownership of FAN tokens, and the skill and volume with which they engage with the FCFL will add to their collection of tokens. Indiegogo plans to categorize the FAN token as a utility token, rather than a security, because its main purpose will be to allow for voting on league decisions. Utility tokens come with fewer restrictions than securities.
FCFL chief executive Sohrob Farudi said he was willing to accept the restrictions involved in working with Indiegogo to stay on the right side of the law. He added that they want to be sure that nobody on their side is going to jail and that when they bring this product to market that it will be done the right way.