Swissquote, a digital bank in Switzerland has allowed its customers to partake in the ICO (Initial coin offering) crowd investing scheme through its platform. All account holders can purchase tokens from LakeDiamond, an industrial diamond producer.
ICOs started making waves last year, in truth, it helped start-ups to generate capital from the public through the issuance of tokens which was exchanged for investments. In this year alone, ICOs have generated $13.7 billion between January to May, this is based on a study from CVA (Crypto valley Association) and PVC. In Switzerland, between the month of Jan and May, $456 million was generated in comparison to $1.46 billion for the year 2017.
The capital generation scheme was made to enable the public stake early within the start-ups. However, before one can participate, one has to learn and understand the A – Z of cryptocurrency technology, especially how tokens are traded and stored. A small number of ICOs collect conventional currencies from their financiers, at the same time, a huge number of ICOs have made ether or bitcoin their preferred currency.
To make things run smoothly, Swissquote service charges 1.25% from any amount contributed by an investor and also it plans to make the ICO market open to so many people. In the long run, Bank clients will also be able to purchase tokens using their trading accounts and leave the trade execution and token storage for Swissquote to handle on behalf of the clients.
Swissquote proclaims itself as the first financial institution to provide this type of direct access to Initial coin offering (ICO). In the same light, Marc Burki, the Chief executive officer of Swissquote had this to say: “True to our philosophy to democratize finance by offering services that are simple and accessible to everyone, we are now offering our clients the opportunity to help grow start-ups.”