From my perspective, in ICCO policy, Token plays a role as the “convertible bond with 0% interest”. When users invest in an ICO, they have to buy a number of tokens and keep in order to convert into share (normally in 2–3 years, depended in company policy). Thus, ICCO is ICO, however, it has a revolutionary step which is having share of company if the company succeed in the future. Nonetheless, If the ICO in the collapse, the ICCO will be gone.
For instance, the company A releases 1.000.000 tokens in ICCO policy, having 30% for selling (equal with 300.000 tokens). At that time, company A will have a convention that 10.000 tokens equal with 1% company share after 3 years, Mr.B buys 30.000 tokens. 3 years later, B comes to A, gives A 30.000 tokens and takes 3% company Share.
The first group having ICCO policy is Palladium which launch in Malta. The issuance of a tokenized convertible warrant — which is regulated by a prospectus approved by the Malta Financial Services Authority (MFSA) and subject to stringent EU rules — will give investors the right to convert the tokens into shares of Palladium three years after the issue date.
Prof. Paolo Catalfamo, founder and chairman of Palladium, said: “We expect this project, which will create more than 100 job opportunities, to be a historic landmark and to bridge the gap between traditional financial services and cryptocurrencies.”
Speaking during the launch held at the Malta Stock Exchange, Valletta, Prof. Catalfamo said the Palladium platform was a revolutionary solution to the biggest obstacles to widespread crypto adoption: cumbersome management of cryptocurrencies and regulatory uncertainty surrounding their use.
Malta, which is fast becoming the blockchain’s island, was the natural choice for Palladium’s headquarters and today’s launch was attended by Prime Minister Joseph Muscat, Financial Services Parliamentary Secretary Silvio Schembri, and MFSA CEO Joseph Cuschieri.
Prof. Catalfamo praised the Maltese government for being at the forefront of regulating blockchain technology and said, “Malta is enacting a comprehensive blockchain legislation and has a dedicated blockchain unit at the MFSA. This is attracting talent and creating a vibrant environment for the development of Palladium’s business.
He added: “This ICCO is one of the most unique investment opportunities in the blockchain world. Institutional investors recognize the scale of the opportunity, but the lack of regulation has kept them watching from the sidelines. Palladium’s solution will change this. Cutting-edge blockchain technology will allow customers to use regulation-compliant, multi-asset accounts to manage fiat and crypto currencies.”