Korea's Unique Ability To Make Its Reverse ICO Fad Permanent: Expert Take

Reverse ICO, or reverse initial coin offering, is now a standardized term in the parlance of entrepreneurial South Korea.

For more established South Korean businesses with active customers and a revenue history, conducting a reverse ICO is the new rage in going public.

Business owners, or promoters, see the reverse ICO as a relatively inexpensive method of fundraising and a faster path to liquidity.

The present crop of South Korean reverse ICOs include ventures that provide products and services ranging from online content to craft beer to life insurance.

The Reverse IPOThe reverse IPO, which abbreviates reverse initial public offering, inspired the reverse ICO. A reverse IPO, also called a reverse takeover, is the name given to the process that takes a private company public through the acquisition of a public company.

Economic factors drive companies to select the reverse merger over the tradition initial public offering.

It is generally less expensive to take a company public through the reverse merger process than through the traditional initial public offering process.

The Reverse ICOThe reverse ICO is most broadly defined as the process of buying out the equity of an established company with cryptocurrency acquired through a token sale.

In the reverse ICO, promoters offer the general public the opportunity to become token holders for the first time.

Given that modern Korea tends to be a binary society and that reverse ICO are putting more tokens into the hands of its native businesses, the republic truly has a shot at evolving into the world's first cryptocurrency nation.