Cool Story BRO: French Firm Is Going to Make ICOs Obsolete

Cool Story BRO: French Firm Wants to Make ICOs Obsolete

French crypto asset issuance platform Tozex claims to have built a new vehicle for crypto financing which can show firms a way out of the tough economic times brought about by the pandemic and eradicate ICOs — the “Believers Reward Offering,” or BRO.

According to Tozex, BRO is “the first sustainable alternative” to initial coin offerings (ICOs) and security token offerings (STOs) — allowing businesses to access financing by borrowing stablecoins from investors worldwide.

BROs will save SMEs

The firm’s announcement touts BROs, calling the BRO an “anti-crisis business solution.” The document claims that the fundraising vehicle will help smart to medium-sized enterprises “overcome tough economic times and open new financing possibilities.”

BRO offerings are conducted with Tozex’ blockchain-based crowd-lending protocol which uses smart contracts to autonomously and transparently execute loans linked to a borrower’s crypto collateral. Tozex asserts that its system decreases the risks of price manipulation and exit scams which are usually associated with ICOs.

Despite BRO’s purportedly revolutionary design, Tozex will also provide ICO and STO services.

Tozex co-founder Remy Ozcan said he believes that token issuance vehicles such as the BRO will soon expand beyond the blockchain sector and into the mainstream business community.

Coronavirus crises drive opportunism

Tozex is not the first, and maybe not the last, in the crypto industry to use the COVID-19 pandemic in its marketing campaign.

In March, HashCash Consultants launched their “Corona Fund Index Cryptocurrency“, which was touted as offering the backing of an inverse-exchange-traded fund (ETF). However, later it was established that the token had no backing and thus no reason to correlate to an inverse ETF.