In the press release dated 10 July 2018, the Maltese trading platform called Palladium, together with Bittrex and another partner, announced their intention to realize an initial convertible coin offering, abbreviated to ICCO.
Palladium plans to build a regulated crypto exchange in Malta by investing 150 million tokens in the world’s first ICCO. The planned launch date for the project is July 25, 2018. The funds are to be divided into three divisions via the Malta Financial Services Authority regulated exchange open to cryptocurrencies. While 50% of the funds are earmarked for controlling a European financial institution, 35% will be used to create a regulated crypto exchange and to develop a blockchain platform for the settlement of payments. The remaining 15 percent will invest the company strategically in the financial services sector and in blockchain companies to expand the business. Palladium founder and chairman Paulo Catalfamo calls the project an historic milestone and expects to create more than 100 jobs in Malta, breaking the gap between traditional financial services and modern cryptocurrencies.
How does an ICO differ from an ICCO?
With the Initial Coin Offering, the ICO, investors only receive tokens as virtual currency shares, which offer the chance of price gains. The disadvantage with this financing model is that token holders do not acquire shares in the company and have no entitlement to profit distributions. In contrast, the Initial Convertible Coin Offering provides the ability to convert the acquired tokens into individual shares at a defined time. For the proposed ICCO of palladium, there would be a period of three years after the token issue. An initial convertible coin offering is an attractive investment opportunity for many investors, as the form of financing approximates stock trading and allows it to participate in value appreciation and company growth by way of exchange rights. Most recently, Malta’s Prime Minister Joseph Muscat visited Malta’s stock exchange in the 28th calendar week. Before that, Muscat attended a reception at Binance in May. This is the second largest cryptocurrency exchange in the country according to the measured trading volume.
In addition, from October 2018, the University of Malta claims to offer special courses and degrees in blockchain technology. This is primarily intended to give civil servants training in the future-oriented subject area.