An “ICO 2.0 Model” has reportedly been developed by Bittrex and Maltese blockchain firm Palladium. The newly proposed ICO model is called the Initial Convertible Coin Offering (ICCO) and will “give investors peace of mind and a stake in the future of virtual currencies.” The ICCO model incorporates certain ideas from the older and more established crowdfunding method known as initial public offerings (IPOs), according to Bittrex’s official blog post.
The blog further notes that ICCOs borrow some basic ideas from the widely-used ICO model and are also regulated by the Maltese Financial Services Authority (MFSA). Additionally, Bittrex’s communications team states that each token issued through this new method is referred to as a “convertible warrant” and will be “subject to stringent EU rules”. Investors who purchase tokens issued through the ICCO model will reportedly be able to exchange them for shares in Palladium “three years after the issue date.”
“Bridging The Gap Between Traditional Financial Services And Crypto”
Palladium founder Paolo Catalfamo believes that this initiative will “bridge the gap between traditional financial services and cryptocurrencies.” He added that the Palladium platform could be instrumental in creating “more than 100 job opportunities.” Professor Catalfamo’s comments came during the project’s launch at the Malta Stock Exchange, Valletta where he also stated that ICCOs and their supporting regulatory framework would make it easier for businesses to adopt cryptocurrencies.
The professor went on to describe Malta’s efforts to regulate crypto and blockchain related activities as “comprehensive” while noting that the island country also has “a dedicated blockchain unit at the MFSA.” Per the Palladium founder, this type of “vibrant environment” is conducive to the ongoing development and advancement of his company’s business.
Regulated Framework For Crypto And Blockchain Companies
Catalfamo further stated that his company’s ICCO model will provide institutional investors a properly regulated framework for crypto and blockchain related investment opportunities. He thinks that “the lack of regulation has kept [institutional investors] waiting on the sidelines.” However, he says that his firm will help attract more institutional clients to the crypto industry by offering them “regulation-compliant, multi-asset accounts to manage fiat and crypto currencies.”
Palladium’s crowdfunding campaign plans to raise €150 million in order to acquire “a controlling interest” in one of Europe’s financial institutions and launch its own regulated cryptocurrency exchange through a partnership with esports betting platform Unikrn and Bittrex. The funds raised will also be used to create a blockchain network for the “clearing and settlement” of digital assets. Additionally, the blockchain startup will reportedly invest part of the proceeds in various financial services and other blockchain-related projects “complementing Palladium’s business.”
Notably, Malta has now become well-known for its crypto-friendly environment due to large cryptocurrency exchanges such as OKEx and Binance shifting their headquarters from China over to the European island nation. The launch of Palladium and Bittrex’s joint crypto project was attended by Malta’s Prime Minister Joseph Muscat, MFSA CEO Joseph Cuschieri, and the island’s Financial Services Parliamentary Secretary Silvio Schembri.