Evercoin Exchange co-founder Miko Matsumura explains what initial coin offerings are and why it makes sense to be cautious.
Miko Matsumura, co-founder of the Evercoin Cryptocurrency Exchange, talks with Business Insider executive editor Sara Silverstein about initial coin offerings. The following is a transcript of the video.
Miko Matsumura: Hi, I’m Miko Matsumura; co-founder of the Evercoin Cryptocurrency Exchange and here’s everything you need to know about initial coin offerings.
Sara Silverstein: So I really want to learn everything I can from you about ICOs. Seems to be a lot going on right now. Generally speaking what is an ICO?
Matsumura: ICO is kind of a funnily named thing. ICO which is Initial Coin Offering. So essentially what is happening is that tokens are being created and they are being sold to the public. So it’s quite a phenomenon these days.
Silverstein: And what are you getting? So you’re getting a coin. What is that?
Matsumura: So what you’re getting is that you’re getting a cryptographic token to store in a piece of wallet software and ultimately the value is determined by the value of the economy being created by this entity
Silverstein: So it’s not like you have a stake in an IPO? You don’t have a stake in what’s behind it?
Matsumura: One of the big concerns people have about coins and cryptographic tokens is that they don’t actually confer legal rights in most cases. So that’s pretty interesting and potentially concerning for people who hold them.
Silverstein: So kind of like the bitcoin — the value of the bitcoin is what keeps the bitcoin blockchain going right?