Technology: Unlocking cryptocurrency token sales

Abstract

Token sales (also known as Initial Coin Offerings ('ICOs')) have made headlines this year as part of huge price increases in the cryptocurrency space. They bring a decentralised form of crowdfunding to the blockchain which is not managed by a third party (such as Kickstarter). The prices of popular cryptocurrencies such as Bitcoin and Ether skyrocketed during early 2017. Huge amounts of money have flowed into the sector, far exceeding the funds made available under traditional forms of fundraising for tech start-ups. This shift in the fundraising landscape has occurred just as the Australian government has finally regulated and permitted crowdfunding for public companies via the Corporations Amendment (Crowd-sourced Funding) Act 2017, with a potential extension to proprietary companies expected later this year.