Swissquote wants to democratize the financial world and launches an ICO investment platform. Investors can invest on this from the equivalent of 30 euros in ICOs. LakeDiamond is the first company to use the offer. According to own data, Swissquote is the first bank in the world.
Swiss-based online bank Swissquote announced a few days ago in a press release announcing the launch of its ICO platform. This allows investors to participate in ICOs. In addition, Swissquote will take over the storage of the tokens following an investment. Investments are made using Swiss francs. Behind the project is the idea of ”democratization of the financial world”, as CEO Marc Bürki argues:
“The democratization of the financial world has been our guiding principle since the founding of the bank. We want to simplify services and make them accessible to everyone. Accordingly, our customers now have the opportunity to support start-ups through block-based crowdfunding, ICO for short. “
This “democratization of the financial world” is made possible, among other things, by the minimum investment of 33 Swiss francs (about 30 euros). The first ICO (or pre-sale) is already running. This is the Swiss start-up Lake Diamond. The company produces art diamonds for industrial applications such as lasers or watch drives. About the ICO, the company wants to collect 60.5 million Swiss francs. A token equals one minute of production time. In other words, each token is a fraction of a diamond, as LakeDiamond CEO Pascal Gallo explains in a YouTube video .
Diverse ICO environment
Although Swissquote is the first bank worldwide with its ICO platform, other companies offer similar services. For example, the Stuttgart stock exchange announced a similar product in August . Moreover, the announcement comes a few days after the ICO report by the auditing firm Ernst & Young. Among other things, they report on sharply falling ICO yields and predict the withdrawal of private ICO investors.
Despite this difficult ICO environment, Swissquote’s goal of “democratizing the financial world” remains faithful to the goal of the crypto-economy. However, contrary to the statement in the press release, investors do not need to know Blockchain or have a blockchain wallet because of the ICO platform. Although this technical simplification increases user-friendliness and drives market penetration, it weakens the core properties of ICOs. Finding the mediocrity between usability and revolution is key to the future of ICOs. Will they be just one investment class of many – offered by a bank – or allow ICOs to be “your own bank”?
Whatever the case, such institutionalized ICOs have a big advantage: they are legally and entrepreneurially more secure than direct investments via the websites of the respective ICOs. Although total loss is never excluded, a professional preselection reduces the likelihood. For example, Swissquote requires transparency from the ICOs. Among other things , the bank is considering “only mature projects that can be launched immediately, and require consideration of the company’s governance, activity, financials and legal position.”
Many paths lead to an ICO
Currently, investors can invest in ICOs in a variety of ways. Also, ICOs are still aimed at a broad investment group. Whether, as Ernst & Young predicted, private investors will withdraw and more qualified investors move forward, will become apparent. It is also unclear how future investments will be made; Will it be like Swissquote banks, crowdfunding platforms such as Newfound or, as before, direct investments? Ultimately, the investors decide. That is why it is market-promoting that companies offer investors as many ways as possible.
Categories: Crypto Currency