Here’s something we don’t hear every day: a Swiss bank has opted to enable its clients to participate in initial coin offerings easily.
The bank, Swissquote, has previously allowed customers to trade in cryptos. This is, to say the least, an unusual service for a fiat banking institution. Additionally, Swissquote offers traditional FOREX trading and the range of services that traditional banks offer.
The first ICO to be offered as an investment option on the banking platform is LakeDiamond, a lab-grown diamond company which is raising funds to purchase new equipment. They will offer more ICOs in the future.
The pre-sale of this ICO is ongoing and offers a 10 percent bonus up to 4 million CHF (just under $4 million).The regular public sale will not open until January. Presumably, buyers will not have the opportunity to realize any gains or exchange their tokens for other cryptocurrencies before the spring.
The token itself is pegged to the cost of diamond production. Each token is meant to be equivalent in value to “1 (one) minute of growth reactor operating time, which produces lab-grown diamonds. One minute is the smallest possible unit, so the tokens are non-divisible past this point. If a diamond plate takes 180.5 minutes to grow, it will consume 181 LKD.”
While this is not an ICO Review, LKD tokens are priced around 50 cents each. There will be a maximum supply of close to 110 million. The funds raised will be used to improve and expand the firm’s operations. Within the system, the tokens will have utility.
Lab-grown diamonds are a growing industry which markets themselves as more ethical. The movie Blood Diamond speaks to the reason that the ethics of traditional diamonds can be seen as questionable. Like all industries which require entry into disadvantaged countries and massive labor forces, the diamond industry has its share of detractors. Nevertheless, not everyone feels they are more ethical. There is the fact that they require less labor and if they became the norm, many thousands of people would find themselves without a livelihood.
Yet, there’s certainly nothing unethical about investing in a firm to help it grow. LakeDiamond is meeting a demand and wants the public’s help to get there. SwissQuote feels it is a good investment opportunity for its account holders, and so they have partnered.
All the same, cryptonaughts have invested in ICOs since before banks even took notice of bitcoin or any other cryptocurrency. While it is certainly positive to see a bank be so forward-thinking, ultimately banks are not necessary for investment into ICOs and are furthermore decreasingly necessary for anything at all as the blockchain revolution moves on.
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Last modified: May 20, 2020 2:34 PM UTC