Asia’s first blockchain-based unlisted stock trading platform called ITOChain is going to be launched during the first half of 2019.
It is expected that ITOChain, which buys and sells unlisted stocks through tokens and is a more advanced form of ICO (Initial Coin Offering), will open up a new ecosystem where companies can receive funds through ITO (Initial Token Offering).
MetapsPlus (CEO Kim Seung-yeon), ITO-Chain (CEO Park Jin-hong), and Korea Funding (CEO Kim Hae-dong) held an agreement ceremony for ‘Blockchain-Based Unlisted Stock Real-Time Financial Network’ and have started on development of relevant systems.
When this platform is commercialized, unlisted stocks can be bought and sold through tokens. Companies will be able to receive funds as type of listed companies through issue of tokens without having to perform IPO (Initial Public Offering) and ICO.
ITOChain will be Asia’s first blockchain-based unlisted stock financial network platform that will be developed for unlisted stock market investors and innovation of environment for company investments.
It is difficult to understand values of companies that issue corresponding stocks before investments within unlisted stock markets and it is also difficult to be guaranteed of stability and transparency of stock transactions. Also, it is not easy to receive appropriate compensations like dividends after investments.
On the other hand, not only does ITOChain allows stocks to be bought and sold by providing information of over-the-counter companies’ stocks and distributing tokens through decentralized blockchain technology, but it also manages company information and operates financing.
MetapsPlus, ITO-Chain, and Korea Funding are currently developing this platform with hopes of commercializing it during the first half of 2019.
ITOChain’s system will be operated as a trading center, a wallet, a compensated community, and a P2P (Peer to Peer) lending platform.
Listing of over-the-stock companies’ tokens will take place for companies that pass self-evaluation system (IEM).
ITOChain will issue bonds by having company’s unlisted stocks as collaterals while over-the-counter companies will turn their stocks into basic assets. Issue of tokens is decided through Smart contract, and over-the-counter companies will raise funds by selling their tokens. Investors can use ITOChain tokens for token trading, P2P lending investment, and purchase of community information.
ITOChain token model, which is blockchain network based on ERC 20 Ethereum, records and changes transactions and contracts of companies and investors. Conversion between stock and token is possible through this process.
ITOChain token model is also applied with world’s first listed process called ITO.
ITO process goes through application, approval, demand forecast, subscription, and listing of tokens in an order and it is similar to that of IPO.
Items that are scheduled to be listed carry out public participation of listed prices, and listing price will be decided based on estimated demands within particular duration. Issued tokens can be traded as Ethereum-based ITOChain coins.
This token can obtain stocks through Smart Contract and it can also be used as a compensation means for separate communities that provide information on unlisted stocks.
On the other hand, it is expected that information that is integrated into ITOChain platform will be used as public interest means that will be provided to public agencies and credit evaluators in a form of Big Data. ITO-Chain is responsible for overall development of this platform and it is planning to expand application of this platform to data industry by applying AI (Artificial Intelligence) technology.
“This project is the first example of innovating unlisted stock market through blockchain and many reverse ICO companies and companies that are preparing for IPO will raise funds through ITO in the future.” said CEO Park Jin-hong of ITO-Chain. “After going through a beta-test this second half, we will open an exchange sometime during the first half of 2019.”
MetapsPlus, ITO-Chain, and Korea Funding will also establish a separate blockchain research institute so that companies that specialize in AI, credit evaluation, and Big Data can support blockchain technology as well as finding startup companies.
ITO-Chain is going to announce its white paper sometime this month.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com