Writing Legal Documents for an ICO

Each ICO must be accompanied by supporting legal documents detailing the issue, its legality, and the terms of participation in the purchase of the tokens at the time of issue. One of the documents is a document of participation conditions in the purchase. It has several names. One of its common names is "Token Sale Terms". This document describes the conditions for participation in the issue, such as who is entitled to purchase tokens and who is not allowed to purchase tokens, whether the buyer must identify himself at the time of purchase and how, whether there will be a lockup period, who the issuing company is, what the token did. And what will be its characteristics, restrictions on the use of the token and its distribution (if any), the processes of purchasing and receiving the tokens, etc.

In most cases the ICO will be executed without obtaining regulatory approvals as the issuance of the offering will not require such approvals. However, sometimes an investor sees himself as a victim of the IPO. In such a situation, the only legal solution available to investors who buy virtual coins that have not been issued under regulation, and who see themselves as harmed by the issue and the issuing company, is usually the legal clauses contained in the commercial agreements entered into between the issuer and the investor. Therefore, from the issuer's point of view, it is imperative that the offer and issue documents be worded in a way that protects the issuing company and its executives from any legal claim that may be raised at a later stage by investors.

Therefore, it is necessary to write fair but tight and comprehensive protection issuance documents.