Initial coin offerings (ICOs) could fundamentally change traditional types of companies such as mutuals or co-operatives, writes former SEC chief Tom H Glocer in a blog post. Mutuals are owned by, and run for the benefit of, their members, with profits typically reinvested in the business. However, many mutuals "demutualised" in the last few decades, partly due to a lack of investment capital. Glocer said ICOs could help update the mutual company on a modern infrastructure because schemes organised as a company could be financed by coin offerings, with follow-on investment later derived from token sales.
Initial coin offerings (ICOs) could fundamentally change traditional types of companies such as mutuals or co-operatives, writes former Reuters chief Tom H Glocer in a blog post. Mutuals are owned by, and run for the benefit of, their members, with profits typically reinvested in the business. However, many mutuals "demutualised" in the last few decades, partly due to a lack of investment capital. Glocer said ICOs could help update the mutual company on a modern infrastructure because schemes organised as a company could be financed by coin offerings, with follow-on investment later derived from token sales.