Changes in the global ICO market are inevitable in the near future, given that China has banned the initial placement of tokens, and the crypto-currencies are very seriously regulated in the US, Canada, Singapore and Australia. Companies trying to raise funds by selling their own coins or tokens, it is better to move to countries that are not engaged in tight regulation of the crypto-currency market, for example, Switzerland or the United Kingdom.
Nevertheless, this does not solve the main problems related to the industry: taxation and protection of investors' rights.

A number of countries still do not have a clear position on the regulation of ICO campaigns, but this is only a temporary phenomenon, experts say - many regions of the world have already indicated their position with respect to the primary placements of the tokens. The measures will be taken as soon as governments develop possible scenarios and decide how they should treat the crypto-currency market. The list of countries that have not yet begun to regulate crypto-currencies and ICO includes Belgium, Sweden, Denmark, Estonia and the Russian Federation.
In this situation, when governments try to regulate something that should not have been regulated at all, many ideas have emerged as to how to protect the rights and interests of investors, for example, by introducing a centralized system into a decentralized one.
One such solution is hybrid online investing (hybrid online investing).

ICO Hybridization

The initial public offering (IPO) was a viable way to attract investment since the 19th century, when the first public sale of shares took place. In online investing, shares are replaced by tokens and coins. The reasons for moving from an IPO to an ICO are not only obvious, but also logical: this avoids excessive regulation and centralization and covers a much larger number of investors.
However, the escape to the world of anonymity and decentralization has its consequences. The absence of regulation means that investors' rights are not protected in any way. But what if, instead of reinventing the wheel, you can take a simple tool, well-known all over the world, and with it help create a reliable and secure system for online investment?
Step back?

The crypto-currency market is a much more democratic environment, compared to the exchange market. The difference between currencies and stocks is often ephemeral. The idea of ​​supporting tokens with debt obligations and bills of exchange may seem retrograde, but in fact it can be seen as the successful use of old proven methods in our time.
Debt is one of the oldest securities. Despite the fact that most of the provisions in their relation were created at the beginning of the 20th century, they are still recognized by many countries.
Debt obligations were created as a tool for investing unused cash, as well as as a lending instrument. Obligations can be transferred to another person through an endorsement. The main problem of debt obligations has always been that they were quite easily faked, even easier than banknotes. At present, this problem can be solved thanks to clever contracts and blockchain technology.
It would seem that securities contradict the very idea of ​​decentralization, but this contradiction is an illusion. In fact, securities add a whole new level of protection. The goal of hybridization is to unite the best aspects of centralized and decentralized systems: transparency and reliability, bond market traditions and modern technologies, virtual code and physical documents. All these aspects complement each other and provide protection for all parties involved.

What is Hybrid Online Investing?

Hybrid investing is a system where tokens traded by companies are supported by paper securities, for example promissory notes. The notes are issued on paper and are kept in the safe of the arbiter company. Ownership rights to such notes, as well as transfer data are stored in the blockchain. Thus, the security cannot be stolen or forged. To receive the note one would have to order its delivery or visit the arbiter company.

Of course, the blockchain cannot guarantee payment on promissory notes, since notes themselves do not imply that the company owns any financial assets. A due diligence might be a solution to this problem. Expert evaluation of projects that intend to emit tokens is one more step towards a safe environment for investing.

Fraud is unlikely,  since in the case of a successful fundraising campaign any company would prefer to invest those funds into its own development. In case a company does not wish to pay interest or the deposit to the investor, the latter could always seek help from a court, where notes, unlike smart contracts, are known and can be judicial matter.