Create ERC Token Development Company to Build ICO Software in Malaysia


Would-be issuers of “utility” ERC tokens can be expected to encounter high costs, middling raises and regulatory risk. But there is a solution for the beginning ICO's were magic. Young projects without a legal entity, domicile or identifiable management team were able to raise millions of dollars. They promised to build infrastructure that would unseat corporate titans without so much as saying hello to regulators and taxing authorities. Smash the banks, change the world and bring about some sort of libertarian crypto utopia Obviously that hasn’t happened.


Regulators are increasingly cracking down and taking interest in the blockchain space. While governments vary in their response to blockchain technology projects, it is clear that they will respond and that they will hold projects accountable to their laws. “Utility” token offerings designed as an end run around securities laws are unlikely to hold up, with the SEC say openly that they haven’t seen a true “utility” yet. In this space, just about every project is likely in violation of securities laws.

But there is an exit, a way forward that’s better for projects and investors and helps relieve the threat of government interference: Security Token Offerings (STOs).


Utility tokens, also called user tokens or app coins, represent future access to a company’s product or service. The defining characteristic of utility tokens is that they are not designed as investments; if properly structured, this feature exempts utility tokens them from federal laws governing securities.
By creating NEM Wallet, a startup can sell “digital coupons” for the service it is developing, much as electronics retailers accept pre-orders for video games that might not be released for several months. Filecoin, for instance, raised $257 million by selling tokens that will provide users with access to its decentralized cloud storage platform.


Because the term “ICO” is a derivative of “Initial Coin offering” (ICO), utility token creators usually refer to these crowdsales as token generation events (TGEs) or token distribution events (TDEs) to avoid the appearance that they are engaging in a securities offering.

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