Abstract:
Initial Coin Offering (ICO) is one of the most discussed topics in these years of continuous innovation and progress in the financial sector. ICOs can represent a disruptive alternative financing tool for companies and start-ups unable to raise capitals through the traditional methods offered by banks or institutions. Their rapid spread, however, does not always imply security and success: there are indeed many risks that investors incur, since they could find themselves involved in unprofitable and fraudulent projects. In this context, as a matter of facts, the legislation is still too fragmented and it fails to keep up with the quick escalation of this phenomenon. This study therefore analyzes both the technical and regulatory aspects of ICOs, taking into consideration the current legislation with a focus on the European Union. It compares ICOs with the already existing plans and financing sources for SMEs, analyzing how they can be correctly regulated and promoted so that they can actually be considered as a secure and reliable source of financing.
