Dear @devann
Great comment buddy
Whilst I think LCOs have the potential to be a big thing in the future, I don't think it will be as early as 2019.
I also believe that 2019 will be very calm and quiet.
I have known of companies de-listing themselves just to be relieved from these hassles.
Seriously? OMG. I never knew about it.
Just wandering what are the differences between STOs and LCOs?
That is indeed a great question and Im myself trying to figure it out.
Cheers
Piotr
Dear @crypto.piotr
I think the main difference between STO and LCO lies in the ownership of the company and the company's right to issue dividends.
In the case of a STO, it being a security, it gives the holders of the security tokens a share in the ownership of the company. In addition, the company may pay dividends to these holders of the security tokens, if deemed appropriate.
Whereas, in the case of a LCO, the utility token is not a security and therefore the token holders do not have a share in the company and are not entitled to dividends the company may pay to its shareholders. Of course, if the token holder happens to also hold the shares of the company, he will be entitled to the dividends paid by the company as a shareholder but not as a token holder.
@blockshine, would appreciate you input to confirm, amend or expound on my comments above.
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@blockshine, it appears that a new form capital is born.
Besides debt capital and equity capital, now listed companies have another choice to raise capital, which is neither debt nor equity - the LCO capital.
From the perspective of a listed company, the company doesn't have the burden of a debt (the token holders are not lenders) or the traditional responsibility to its shareholders (the token holders are not shareholders).
If a token holder has concerns about the management of the company, he cannot attend the shareholders meeting to voice his concerns.
However, I predict that in the future, these developments may eventually lead to amendments to the Company Acts of the respective jurisdictions to provide better safeguards to the token holders. Who knows, the legislators may even create a third type of shares, besides the ordinary shares and preferential shares, calling it, say, crypto shares!
Alternatively, in future, you may even see companies treating token holders as lenders and providing security to them in the form of debentures! These token holders will then get a fixed interest against their loan secured by the debenture whilst being able to participate in the token economy.
Don't get me wrong. I am not saying that LCOs are bad. They are certainly better than ICOs. I am just brainstorming to predict the future possibilities.
cc @crypto.piotr, @reverseacid @julianhorack
Dear @devann
Yet another amazing comment buddy.
Wow. I've lost you here. To smart for my little brain :)
Yours
Piotr
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