> While debate around the use of ICOs continues, Initial Loan Procurements (ILPs) have emerged as a new fundraising method. Similar to an ICO but in the form of loans rather than coin acquisitions, ILPs enable borrowers and creditors to enter into a loan agreement through legally binding smart contracts. With an ILP, a creditor's investment is contractually tied to the performance of the company and eliminates the wild swings of volatility that have been associated with a vast number of ICOs. In simple terms, as long as the company makes a profit, the creditor gets annual returns.

> Two Estonia-based companies, Blockhive and Agrello, have formed a partnership to provide the first ILP of its kind, 'Blockhive'. Blockhive's model removes the issuance of tokens (in the anticipation of future appreciation of those tokens) and replaces it with a contractual entitlement to 20% of their annual operating profits.

That sounds more like equity to me than a loan.

Whatever the structure, it isn't new. Putting it in a fancy blockchain is new, but the agreement to pursue some endeavour and share in the revenues, either as an obligation or as a percentage of profits, is ages old.

And just as old is the fact that you have to actually do what you said with the money, or else it's fraud.