The founders raise money by issuing digital tokens in exchange for crypto-currency without the transfer of any equity. Investors who buy the Rental Coins can either use the digital tokens for renting a car or receive payouts each time a car is rented out by others. Except for the similarity that both vehicles are means of raising public money, ICOs are almost the antithesis of IPOs. “Unlike crypto-currencies, which are purely speculative, an ICO is a financial innovation that should be regulated,” said a former RBI official. “Blockchain (the underlying technology behind crypto-currencies) is here to stay and ICO as a form of fundraising is here to stay,” said Accel’s Reddy.

Source: Economic Times December 05, 2017 19:07 UTC