Considering the number of ICO frauds which are being unearthed each passing day, there is a serious need for steps to be taken to stop this menace. In view of this Token Alliance of Chamber of Digital Commerce has released a set of guidelines which would be helpful for cryptocurrency and let the market grow in a responsible manner.
Chamber of Digital Commerce has released a white paper which states the guidelines. The paper focuses on utility tokens which give users a complete future access to services and products. With this ICO’s can raise money for any new blockchain product by presenting investors future use of the service which is being developed at a discounted price.
Paul Atkin, Principle of SEC has stated it is very important to consider these principle to achieve responsible growth. There is a need to be smart regulations in place which can strike a perfect balance, better innovations and protection of investors. It becomes important to explain all the unique attributes of the blockchain to investors, even if they are not related to the investments. This can provide investors with the guidance about the technology and help them make an informed decision about their investment.
The released whitepaper has been divided into three distinct section, first offers an overview about future and current regulations which are in place, second part showcases the principles of an industry for token support and trading platform. It showcases all the legit and safe business practices which should be followed to reduce the risk of ICO frauds.
According to the reports published by Bitcoin Magazine, in the third section of the paper focuses on the general growth of the digital token and highlights the potential it has for its future.
What Is the Chamber of Digital Commerce?
Chamber of Digital Commerce is based in Washington D.C and is the largest trade association in the world. It represents blockchain and cryptocurrency. Token Alliance under which the paper was launched, an initiative taken by Chamber of Digital Commerce which aims to stop ICO frauds.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]