iCandy to accept ICO in-game ads [9Finance]

iCandy to accept ICO in-game ads

iCandy Interactive Limited (ASX: ICI) will now accept advertising for top quality and legally compliant initial token offerings (ICOs) across its cohort of gamers within its Interactive network.

This follows Facebook’s recent ban on digital advertisements for ICOs related to cryptocurrencies, a move which will create demand within the market iCandy is looking to tap into.

The Interactive network has already attracted interest and could develop into a significant advertising avenue for ICOs. For in-game advertising, iCandy will charge a success fee of four percent in Etheruem and four percent in token (or digital coin) being put up for sale, for any click-through purchases.

The success fee model will allow the company to generate even more upside on its in-game advertising income. With the high potential for revenues from this stream, iCandy will trial the commercial model with an initial batch of ten ICO clients.

ICI will take particular care to ensure that the ads are only for ICOs that are legally permissible. Measures towards that end will include the company only taking on clients that offer digital tokens that are not considered securities; employing the Howey Test to determine the nature of the token as part of its due diligence; and conducting its own due diligence on legitimacy and lawfulness of the client’s offering.

Further, the company will ask clients to provide a legal opinion relating to their relevant jurisdiction on the lawfulness of the ICO.

Currently, iCandy operates in more than 70 countries and is based out of its Singapore incorporated subsidiary iCandy Digital Pte Ltd. Advertising ICOs (that are not securities) is no different from other digital advertising in Singapore. In locations where ICO ads are banned, the company will employ Geo-IP filtering as required to shield the ads from gamers in those regions.

In terms of further due diligence, ICI plans to have clear notices relating to ICO ads with warnings to readers about the risks and volatility they may pose.

Source: https://finance.nine.com.au/2018/02/15/17/29/icandy-to-accept-ico-in-game-ads