This assignment is to be prepared by each student individually and accounts for 40% of each...

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This assignment is to be prepared by each student individually and accounts for 40% of each student’s overall mark for this course. The assignment consists of four questions. Students are required to answer all four questions. All questions carry equal marks. The assignment assesses students’ achievement of the ILOs of the whole course and particularly of Topics 10-15, which focus on entrepreneurial finance. The purpose of this assignment is to test students’ understanding of entrepreneurial finance including innovative financing methods such as initial coin offerings (ICOs).

Rochak · Accepted Answer

Answer 1:
LakeDiamond ICO (Initial Coin Offering) is one of its kind as they are offering the coin to anybody who is looking to grow their value with the company’s value. The LKD (LakeDiamond) token is what they call the coin, and they are offering diamond production minutes embedded in the token, which are the basis for growing each unit of diamond in its facilities. The coin offers equivalent value which the company can explore by extracting the diamond, which means that any diamond captured can lead to a growth in the token value as well. 
The company will be a total of 141,120,000 LKD out of which 20% will be held by the company itself. Other tokens in the market are not linked to any physical facilities or production, but in this case, the production facilities are what the tokens are linked to and therefore it makes the tokens more valuable than any other. 
The LKD tokens can be used for any of the following purposes which are:
· Purchases of the company’s products
· Capturing the industrial orders
· Secondary market, for regular purchase and sale of the tokens
The monetary policy of the tokens is the most unique which is not found in any of the typical token supplies, this is said because the company will burn down any token which is used by the owners. 
Overall, the LKD ICO is unique in its proposition and new which cannot be compared to all the typical ICO by other companies. 
Answer 2:
LakeDiamond’s founder is of the choice to use an ICO (Initial Coin Offering) than any other financing measures (i.e., debt or equity) for financing the venture because the company wants to set up a growth reactor and R&D on novel diamond-based devices,

This assignment is to be prepared by each student individually and accounts for 40% of each student’s overall mark for this course. The assignment consists of four questions. Students are required to...

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