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Author: Admin | 2025-04-28
Preventing the Financing Risks of Token Offerings.”Notably, there are major technological differences between online platform tokens and cryptocurrencies. Cryptocurrencies utilize completely different techniques, involve asymmetric encryption, and possess characteristics of decentralization and distribution. These new types of privately issued tokens are commonly referred to as “cryptocurrencies” from a technological perspective. Since both cryptocurrencies and game tokens are privately issued and not “real” (legal) currencies, the emergence of cryptocurrencies inexorably expanded definition of virtual currency. After the birth of Bitcoin, numerous virtual currencies adopting similar asymmetric encryption techniques appeared, leading to a remarkable boom in the crypto market and sparking a social experiment of private currencies.Footnote 9 Therefore, virtual currency is often used interchangeably with cryptocurrencies without further clarification. Private Digital/Electronic Currencies Before Bitcoin It is worth noting that prior to the rise of Bitcoin, various private digital/electronic currencies had already been devised. These are all centralized and do not employ the blockchain technology. One notable example is “WebMoney”, introduced by a Russian private enterprise in 1998. This was initially designed as an intermediary solution for prepaid cards and remittance services. Upon reassessing its significance with the advent of Bitcoin and stablecoins, it becomes evident that, like stablecoins, WebMoney and similar private tokens used for remittance services possess characteristics beyond mere payment functionality: they not only facilitate the storage and transaction of value but also act as independent units of account. Since its conception, WebMoney has developed to offer different units of accounting for a range of currencies, such as WMZ (WebMoney Dollar), WME (WebMoney Euro), WMR (WebMoney Ruble), and more. This evolution marks a substantial forward step, elevating these tokens from mere payment instruments to distinct forms of currency. Private currencies like WebMoney exhibit three key characteristics: they are virtual (private) in nature, possess general payment functionality that is not
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