Questions about tokens and ICOs
- What entity is the issuer of the tokens?
- What entity markets/sells the tokens in the ICO? Are the tokens marketed/sold via the entity’s own website, a trading venue or some platform?
- Does the issuer or marketer/seller of the tokens have some authorisation? If so, what?
- How much funds (in euros) are raised in the ICO (soft cap/hard cap)?
- What is purpose of the funds being raised?
- To whom are the tokens offered/marketed in the ICO?
- to anyone (investors in general)
- to (potential) users of a service or something similar
- to a pre-determined, limited group
- How many?
- How has the group been limited before marketing?
- to others, whom?
- To what do the tokens give entitlement? How have these rights been documented (e.g. terms and conditions)?
- to a dividend, interest or other return from the issuer
- Which?
- How is the return determined?
- What is the payment method of the return in practice?
- Do the tokens have a due date or maturity?
- to a service (or product) of the issuer
- What service or product?
- When and on what terms?
- the tokens can be used to pay
- to a return of capital
- Is the issuer committed to redeem the tokens?
- When and on what terms?
- to something else, what?
- What is the investor’s interest in buying the tokens? What arguments are used to market the tokens?
- expected return
- use of a service
- to make payments
- rise in value
- earning of additional tokens
- What are the subscription terms of the tokens?
- How much does one token cost? What is used to pay for the tokens?
- How are the tokens paid for?
- Does the subscription have a minimum/maximum amount per investor?
- Are all subscriptions accepted?
- What is the “subscription period” of the tokens?
- When and how are the tokens transferred to the investors who participated in the ICO? Who is responsible for this?
- How are the tokens stored? Is storage provided by a third party (custodian)? In what country does the custodian operate, and is it authorised?
- What kind of proof of ownership of tokens do the investors receive?
- Does someone keep a record of token holders? Who has information about them, and where?
- Can the tokens be conveyed freely to anyone? Do the buyers of tokens receive the same rights has the sellers had?
- Can tokens be acquired from somewhere after the ICO?
- Will the tokens become subject to trading somewhere?
- Is the number of tokens limited?
- Are all of the tokens offered in the ICO similar to each other? In other words, is it all the same to an investor which token he or she owns?
- The laws of which country are applicable to the tokens and the ICO? Where are possible disputes settled?
- If the virtual currency is built on a mechanism that attempts to stabilise its value (i.e. stablecoins), please describe the fundamentals of this mechanism. Please provide both a legal and a technical description.
