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The obvious difference is transactions without a third party. You can also verify ICO token integrity on the blockchain yourself (via open source apps).
by lawn 8y ago
The obvious difference is transactions without a third party. You can also verify ICO token integrity on the blockchain yourself (via open source apps).
- notahacker 8y agoThe obvious question is whether that actually matters all that much for securities, since the broker/exchange adds negligible risk and overhead for the buyer relative to the trust in the public company needed to buy a stake in it and the costs of meeting regulatory requirements for public companies. Anybody who's more worried by the potential complications of T+2 settlement when purchasing blue chip stocks than the Wild West world of ICOs shouldn't be investing.
- lawn 8y agoThat is indeed the right question to ask. Maybe it's less about trust and more about permission. With token based securities I could trade with whomever I choose whenever I want. Interesting to see how it turns out in the end.
- asynchrony 8y agoWhat happens if a trade that is illegal under the law of the country of the seller/buyer/exchange? The courts would be completely powerless to undo the transaction. Again it seems to me the main and only attraction is evading regulation.
- wiredfool 8y agoThere's a 95% accurate O(1) solution to determine if an ICO transaction has integrity.
- hndamien 8y agoAnd you can maintain custody, so somebody isn't loaning out your shares.