Saturday, 27 January 2018

Zapaygo offer discount on ICO (not yet launched) to entice Crowdcube investment

Is this legal?

Zapaygp are overfunding on Crowdcube - they got over the line with £100k invested in one of their last days. The overfunding has been slowwwww.

But they have an incentive to play - offer a discount on their pending(so they say) ICO and you can get a discount. BUT this discount, on something which doesn't yet exist, is only available to Crowdcube shareholders of Zapaygo. They are kind enough to give a direct link to the campaign or you can just hit the invest button. That's helpful.

They also offer the chance to look at what they call the ICO Whitepaper and to download the token Business Plan. Click on these to get more detail - you certainly would. But this just leads you to a page that says the plan and paper are not ready yet; so give us your email. 

But hey invest anyway. What the hell - if you dont you wont get your discount on the tokens - which dont exist yet. Makes sense to us.

From a legal standpoint most ICOs are not covered by any regualtion in the UK - not yet at any rate. The FCA say it will take them till the end of this year to come up with a policy. By which time it seems likely ICO,s as we see them today, will be something completely different. When will the FCA get their act together and join the rest of us in the 21st century? Our best guess on this one is that as it is involved in an equity crowdfunding campaign and being offered specifically only to investors in that campaign, it does come under the FCA banner. What will they do about it? Yup that's right.


1 comment:

  1. I dont see the issue, a company offering an incentive to existing who are to become shareholders. Is this any different to M and S, BA etc giving shareholder perks ? I think its a very smart way to encourage shareholders, I for one woudl be ve6 happy to know there woudl be some undlitive financing coming down the road and assume that this plan is way more robust than most forecast and use fo fudns I have seen on Seedrs and the like. I think its a great way of funding and giving participants a blend of equity and token exposure.