| Summary: | The overall global public’s ability to purchase some portion of a digital token project’s initial batch of tokens is the defining feature of an open digital token offering. Using a dataset that differentiates this token distribution model from other varieties – a distinction often underemphasised in regional analyses of digital token sale trends – this research estimates 2017-18 open digital token offering activity by jurisdiction, finding that Singapore-registered projects accounted for 21 percent of Q3/Q4 2018 dollar-volume, more than any other country. Conversely, by late 2018, previous hubs of this distribution model represented a much smaller share. Reasons for Singapore’s rise as a global hub of the open digital token offering are explored, with a particular focus on examining contrasting regulatory approaches to distinguishing between this token distribution model and traditional securities offerings. Notably, 11 percent of Singapore-registered Q3/Q4 2018 token offering dollar-volume was purely-private, versus 94 percent in the U.S. Policy considerations related to this distribution method and the open digital token offering are presented, as are contrasting outcomes: this research estimates that over 70 percent of Singapore’s one-to-two-year-old open token offerings resulted in operational networks or minimum-viable-products, versus fewer than 40 percent of U.S. private sales. Also, about 40 percent of smart contract platform projects that conducted 2017-18 token sales were Singapore-registered – many more than in any other country. For reasons explored in this research, these findings support the view that open digital token offerings benefit projects aiming to concurrently raise funds, build up a user-base, and incentivise technologists to contribute to project development. Moreover, risks to retail participants posed by this distribution method are manageable. Singapore’s policy approach towards open digital token offerings has benefited the Lion City, which was likely home to more digital token projects that conducted 2018 token sales than any other city in the world.
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