To date, ICOs are viewed as legitimate ways to attract investor funds, there are as yet no clear legal and technical measures to control them. Initial loans (ILP) can be an alternative to the standard ICO model.
Luca Sayer, a senior assistant to the law firm Carey Olsen, comments: “In the case of ILP, borrowers and creditors will enter into a loan agreement instead of purchasing crypto currency, which will be a mandatory smart contract.” The lender’s financial investments are contractually bound to the company’s performance, if the firm is profitable, the lender gets his share of the annual profit. ”
The start-ups Blockhive and Agrello have teamed up to launch the first ILP called Blockhive. In the framework of the Estonian project, borrowers will have “the right to 20% of the annual operating profit”. Blockhive will use the Agrello identifier, which will provide support for all legal requirements including Know Your Customer (KYC).
This agreement ensures that information about creditors will be encrypted and stored on the platform of the blockbuster. Users will need to register to receive tokens of access to the Future Loan Access Tokens protocol as soon as they provide their funds to Blockhive.
Recall that $ 5.6 billion was attracted through the ICO start-up company in 2017, according to the report Token Date and Fabric Ventures.