Reasons Why You Need a Lawyer for Your Initial Coin Offering?
An Initial Coin Offering (ICO) is a certain form of funding which uses cryptocurrencies. The funding is typically done with a public crowdfunding campaign, however, private funding is starting to become popular also. The coins or tokens are bought by investors using Bitcoin, Ethereum, or other forms of cryptocurrencies. The coins can also be purchased with legal tender. Many startups like to use ICO’s because they fall outside of currency regulations and guidelines and in turn offer a bit more flexibility and freedom.
The first thing you need when you are putting out your ICO is a Whitepaper. A white paper is an informational and authoritative one-sheet which explains the complexities involved with a particular ICO. And the lawyer you choose should have the know-how to challenge any discrepancies they see within the whitepaper documentation. This refers to both the technical and legal aspects of the paper. You don’t want to take this step lightly and getting the best lawyer possible will save you a great deal of time and money in the future.
Make sure both you and the lawyer you choose are clear on the process and the pricing. There are many stories of those who send out their ICO without enough clarity in what they are looking for and how they want to go about it. Again finding a lawyer who has the wherewithal on this point will save you time and money as well, not to mention a lot of headaches.
Many businesses tend to over the look implications a token or coins’ design may have. Your lawyer should take care in drafting all documents so that the ICO presented falls into the category of a security token. If this step is not done in the correct manner you could be simply wasting valuable time and will not be taken seriously by any investors.
Below are some other things that you’ll want to make sure are covered by the lawyer you hire.
A good ICO lawyer will analyze the current regulatory compliance measures and assure that your coin fits all categories. They will also draft the correct pre-Crowd Token Offer and the Crowd Token Offer agreement.
One last thing you should think about when hiring a lawyer to help with your Initial Coin Offering is marketing. Your lawyer should perform a legal review of your ICO’s promotional and or marketing materials and make sure they are within legal guidelines before you send anything out.
So when you are starting the process of you Initial Coin Offering, remember hiring the right lawyer could make or break your venture.