Another example of this can be seen in the term ICO’. At a base level and when the first instances of it, an Initial Coin Offering is simply an offering of coins (in the form of a cryptocurrency), the use of which is to raise funds for a company to develop its project. The term has been used by almost all cryptocurrency and token events until now, although not all of them quite fit this description.
Compared with that an alternative and more up-to-date version of an ICO definition can be found on sites like Investopedia, which defines the acronym as: “An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.”
Another take on what an ICO is can be pulled from the general opinion of those who view it in a negative light or how it is sometimes portrayed to the general public: a way to launder money and synonymous with Ponzi schemes and other scams; whereas to those who are heavily involved with and support them, an ICO is the future of crowdfunding - unrestricted financing allowing for unprecedented innovation.
The same concept but with different ideals and values attached to it. Despite all these different potential reactions, the common theme behind an ICO is the idea of an alternative method of raising money to fund a company. This basic premise is what entities such as the SEC will use to determine if a token constitutes a security or not, and therefore the regulations it falls under. Any form of cryptocurrency or token offering whose primary function is to raise funds, no matter what it is called is, in essence, an ICO.
The other side of the crypto-coin is where a utility token is offered. The exact nature of the utility it provides could vary between projects but may include permissions to participate in a system, allowance to access a service or other benefits and privileges. To distinguish these types of token events from ICOs, a new term is needed. There are many potential options: Token Offering, Token Sale, Token Generation Event, Token Distribution Event, the list goes on. Some ICOs may mask themselves under these terms but when examined properly can be identified as ICOs (so a rose by any other name can sometimes smell as … sweet?).
With the launch of Blockpass’ native token, the PASS Token, the company has decided on Token Distribution Event to best reflect the purpose behind it. With the PASS token, which is to be sold through select distributors, people participating the event will be required to download the Blockpass app and carry out the KYC process before they can trade their PASS token. By doing this, Blockpass will populate its ecosystem with people who have already been through the KYC process and have an instantly verifiable identity to allow them to on-board to new merchants in the ecosystem. This will in turn make Blockpass more attractive to future merchants as upon joining they will gain access to a growing pool of potential customers ready to be seamlessly on-boarded. Nor is this the only benefit to the token. The PASS token will also entitle the holder to a discount on the KYC process - a voucher of sorts that makes PASS more useful to merchants to distribute to new users that haven’t yet received a Blockpass identity. In its inherent nature, the design of Blockpass and the PASS token mean all players in the ecosystem are compliant.
The Blockpass Token Distribution Event will run from the 31st of May 2018 to the 30th of November 2018, through exclusive distributors listed on the Blockpass Token site (www.blockpass.org/token). From 31 July 2018, PASS Tokens will be listed on Lykke, HitBTC and Gatecoin exchanges.