SINGAPORE (Feb 19): Start-ups in need of funding have lately begun to throw over venture capital beauty parades in favour of the less-demanding and quicker initial coin offering (ICO). But when listed companies do the same, investors should be wary.
Like an IPO, an ICO allows a company to raise money from the public. Instead of offering shares, companies doing an ICO offer some form of cryptocurrency. In a Singapore Exchange filing on Feb 5, Spackman Entertainment Group announced its intention to launch its own Korean entertainment utility tokens, or K Coins, through an ICO. Token holders are being promised future access to products and services from the company, such as merchandise, premium content or events.
“Blockchain technology is an innovative approach to leverage our content and talent management platform. In collaboration with our associated company Spackman Media Group, we are excited to explore an ICO that will give token holders unparalleled access to our artists and content,” says Richard Lee, CEO and executive director of Spackman Entertainment. The company’s business includes movie production and talent management.