Legion Raises $5 Million to Revive ICOs with IPO-Type Rigor

Legion, a crypto startup, has raised $5 million to bring back ICOs (initial coin offerings) with a focus on responsible fundraising. The platform aims to provide IPO-like rigor and access to small-time traders. The return of ICOs follows a regulatory thaw in Washington, D.C. and the rise of new crypto projects, but Legion's founders hope to prevent scams that were common a decade ago.

Legion, a crypto startup, has secured $5 million in funding to reintroduce initial coin offerings (ICOs) with a focus on responsible fundraising. The platform aims to provide IPO-like rigor and access to small-time traders. The funding round was led by VanEck and Brevan Howard Digital, with participation from Kraken, Coinbase Ventures, and Crypto.com [1].

Legion's co-founders, Fabrizio Giabardo and Matt O'Connor, envision a platform that combines the transparency of IPOs with the flexibility of crypto. The company plans to use the capital to build a go-to platform where companies can responsibly sell tokens to small-time traders. The announcement comes amidst a resurgence of ICOs, as seen with the $500 million public token sale by stablecoin-focused layer-1 blockchain Plasma in July [1].

The return of ICOs follows a regulatory thaw in Washington, D.C., where the Trump administration has signaled a more crypto-friendly approach. This has encouraged crypto companies to return to the U.S. and try out ICOs as a means to raise funds. However, Legion's founders aim to prevent the scams that were common a decade ago. They plan to comply with the recently released regulatory framework in the European Union for early token launches, which requires projects to release a "white paper" detailing risks and update it for material changes [2].

Giabardo and O'Connor have met with the U.S. Securities and Exchange Commission (SEC) to discuss what disclosures the agency should require for public sales. They believe in providing honest, truthful, and succinct disclosures that traders can fully understand, and then letting them take the risks realistically [2].

This funding round for Legion is a significant development in the crypto industry, signaling a renewed interest in ICOs and a commitment to responsible fundraising. The company's focus on transparency and regulatory compliance could help rebuild trust in ICOs and attract more investors.

References:
[1] https://www.nftgators.com/vaneck-and-brevan-howard-digital-co-lead-5m-funding-to-bring-back-icos/
[2] https://finance.yahoo.com/news/exclusive-crypto-startup-legion-raises-120000782.html