XIXOIO Introduces IPCO Tokenization Solution
Since their inception, ICOs have faced a significant share of challenges. The most common problem is the loss of investor funds to scamming token sales. However, XIXOIO is confident that their new Initial Public Coin Offering (IPCO) solution will curb these issues.
IPCO is a combination of Initial Coin Offering and Initial Public Offering (IPO). Essentially, IPCO is a smart contact built on the Ethereum network. In addition to the features that are customary to ICOs, IPCO incorporates the legal protection and contractual responsibilities that are associated with IPOs. Furthermore, IPCO ensures that investor funds are protected by gradually releasing the proceeds after the realization of every milestone on the project roadmap.
Tokenization Using IPCO
Despite their numerous advantages, smart contracts have one significant shortcoming; their use is currently limited to the cryptocurrency market. For smart contracts to be applicable in the real world, tokenization is mandatory. Tokenization involves tying physical objects to digital assets such as Ethereum and Bitcoin. Thus, if a token owner sells their token, they have sold their physical asset. The challenge, however, is the fact that tokenization of ownership rights is unlawful in most jurisdictions around the world.
As mentioned above, tokenizing ownership rights is an almost impossible task. Nonetheless, other forms of rights over property can be tokenized. This includes digital vouchers and contracts.
The best way possible to tokenize a company is following the IPCO method. As mentioned above, IPCO focuses on the protection of the investor funds. This means that a business must have predefined milestones for which a certain amount of the collected funds will be gradually allocated.