French cryptocurrency startup Tozex has introduced a new mechanism called Believers Reward Offering (BRO) to attract funding in stablecoins as an alternative to ICO and STO.
The Tozex Protocol supports smart contracts that allow you to transparently borrow stable cryptocurrencies from international investors secured by digital assets. The developers claim that such a system will reduce the risks of market manipulation, ensure equality of all participants and reduce the number of fraudulent cases in the field of ICO. In addition, the mechanism will ensure full implementation of the agreement between investor-creditors and borrowers.
Tozex co-founder Remy Ozcan expressed hope that in the future, the new method of raising funds will go beyond the blockchain industry and will be used in traditional areas. According to the management of Tozex, BRO is an “anti-crisis” solution for small and medium-sized enterprises that will help them overcome the economic crisis, providing new opportunities for obtaining financing.
Note that earlier this year, the Malaysian regulator introduced a new guide for cryptocurrencies, according to which ICOS should be conducted exclusively on exchanges, so that they are responsible for verifying issuers and approving the functions of tokens. According to last year’s data from The coinschedule portal, the United Arab Emirates, the Cayman Islands and Singapore are the leaders in raising funds through ICO.