Frequently Asked Questions

ICO stands for “Initial Coin Offering” and it is a means of raising capital through a crowdfunding campaign with the use of crypto-assets as investment. A digital asset, the coin or the token, is issued for a purpose and are sold to raise money for the said purpose.

After the ICO process is done, the coins are traded on crypto-exchanges and market supply and demand decides on their fair pricing.

An ITO stands for “Initial Token Offering”, a process which is seen to be equivalent to an ICO.

The first generation of digital assets were crypto-coins like Bitcoin, Litecoin etc. Coins have been used as a digital medium of doing transactions in an elegant encrypted way. The next generation of digital assets is the tokens, which cover a broader purpose of use. However, it’s hard to differentiate between these terms as they are broadly used in an interchangeable manner.

The IPO refers to the “Initial Public Offering”, the very first sales of stock issued by a company to the public where a company sells at least part of their shares to the public to be traded on a stock exchange.

IPO’s are mainly used (not exclusively) to publicly offer a company’s equity in the form of shares, whereas ITO’s can be utilized to offer multi-purpose products, which are not limited to shares. These new products are represented through tokens or the digital assets in general.

For every ITO the token has to be classified and a decision pertaining to its regulatory status has to be made. Several fields of law such as financial market law, anti-money laundering regulations, civil law (with respect to the prospectus) and tax law have to be considered. Whereas some tokens merely give the investor the right to access a platform or utilize a digital ecosystem, most tokens are financial products and are thus covered by regulatory law. Depending on each jurisdiction, the sale and offer of these tokens might require a license and/or a prospectus. Furthermore, listing such a token on an exchange for the secondary market is also a regulated activity in most jurisdictions.

Lykke is working closely with regulators towards offering legal ITOs and in order to support the best benefits of its clients.

You can find more about Lykke licenses and future regulatory expansion plans on this webpages and via Lykke News.

Coins and Tokens are listed on Lykke Exchange and you can have access to all of those financial products through the mobile app.

Special releases will take place for each new financial product offered by Lykke or on Lykke Exchange.

Lykke provides its clients with the opportunity to invest in all of the assets traded on Lykke Exchange using both fiat and crypto.

Trading is subject to the contract specifications of each asset listed on Lykke Exchange. An ICO/ITO may have a minimum investment amount.

As soon as you purchase a financial asset on Lykke Exchange, it’ll be transferred into your personal Lykke Wallet.

The delivery or the distribution of any rewards or other benefits of a token is subject to the terms and conditions of each financial asset.

You may send a direct request to us and a manager from our ICO/ITO team will contact you.

Anyone with an amazing idea.

That is subject to the complexity of the project and the services required. It is recommended to spend sufficient time in community building for a successful ICO/ITO.

Lykke offers a wide range of services, from a full scope ICO/ITO with a subsequent listing of your token, thus covering both the primary and secondary market.

Lykke offers supportive services for the ICO/ITO such as technical development, integration and security audit, regulatory classification of the token and setting up a compliant legal structure, financial design and many more.

Lykke minimizes risks due to its strict adherence to regulatory and operational standards. Nevertheless, investing in financial products always entails a non-negligible level of risk.

To conduct an ITO is more cost-efficient than conducting an IPO. Fees are subject to the scope of services a potential business partner requires. Lykke’s sure that its fee structure is very competitive compared to the professionality of the team and the services provided.