The British crypto community seems to have latched on to the ICO buzz to promote the adoption of cryptocurrencies as a means of liquidity for companies. Przemek Skwirczynski, the ICO Rocket associate who made the call said that companies all over the world are leveraging what he called the Bitcoin profit to generate funds for existing businesses and even capital to finance their startups.
Skwirczynski said that there is a lot of new wealth created by digital currencies such as Bitcoin, Ether, and Litecoin which British companies hampered by the uncertainties of the BREXIT can take advantage of to stabilize their businesses through injection of funds.
He said that it is surprising that the British interest in ICOs have been minimal and could be said to be nothing to write home about, although there are indications that this is about to change. He implied that in view of the BREXIT, British companies need to find and adopt new ways of having a continuous flow of investment and feels that ICOs should be an option that shouldn’t be overlooked.
ICOs are fundraising schemes, in which companies develop digital currencies known as tokens. These tokens have utility within that company’s ecosystem. For instance, a store chain could develop a coin that is blockchain based with which customers could use to exchange the company’s products instead of using the pound.
There have been concerns that there is a freeze in the inflow of investments since the BREXIT raising concerns that the British economy would be the worse off for it. Adam Marshall of the British Chamber of Commerce echoed the same sentiments when he said in a briefing that companies now need more resilience to attract investments because investor confidence is low.
Mr. Skwirczynski, however, said that the solution is in British companies working against the odds through the adoption of blockchain based investments such as ICOs. Continuing, he said that Dapps or coins created by companies appreciate as investors buy into them. This, according to him would be a win-win situation with investor capital appreciation and fund injection for companies.
Although ICOs have favored companies at different stages such as startups and existing firms, it seems to work very well for small and moderately large companies. Skwirczynski said that there is no reason why it wouldn’t work for all categories of companies. He also encouraged British companies to adapt ICOs for specific projects such that they need funds to finance.