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Accounting firm PwC tests new blockchain analytics tool to track ICO tokens

Accounting firm PwC tests new blockchain analytics tool to track ICO tokens
Photo Credit: Reuters
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London-headquartered professional services network PwC said that it was testing a new analytics tool, developed solely for the purpose of tracking initial coin offerings (ICO).

The tool will help companies to keep track of their digital tokens and will safeguard against their misuse, PwC said.

According to Eric Young, partner, forensic services, at PwC’s Hong Kong office, the decision to develop the tool was prompted by the growing number of companies choosing to take the ICO route instead of an IPO. The interest in ICOs were rising from various sectors such as manufacturing, technology and retail, Young added.

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Analysts told Bitcoin.com that the PwC was looking to capitalise on the migration of many Asian cryptocurrency companies to Hong Kong and Singapore due to prohibitive stances taken by regulators or governments.

Young said the tool will start tracking and analysing digital tokens or coins as soon as they are released. “While on the blockchain ledger one could track the amount of transactions that have been done using the cryptocurrencies, there is still no way for an issuer of an ICO to trace its coins and know how these coins are being used.”

“With artificial intelligence built into our back engine, our solutions would enable clients to better predict which jurisdictions the digital token could potentially be circulated to. Depending on the type of company and the type of business it is engaged in, it could then apply a high-risk score to that particular jurisdiction,” he added.

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Last November, PwC’s Hong Kong Office said that it had started accepting bitcoin in exchange for consultancy services.

Several Indian companies have also taken the ICO route to raise money. Mumbai-based AS JustRide Tours and Travels Pvt. Ltd, which operates peer-to-peer car and bike rental platform Drivezy, raised $5 million in the first round of its ICO by offering tokens called RentalCoins. 

WandX, Nucleus Vision, Bitindia and Cashaa, too, have chosen the ICO route to raise money instead of opting for an initial public offering.

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