Yeah. I'm open to the idea of loans being an actual practical use for smart contracts (they are well suited to payment automation and offer some degree of transparency of debtors' use of and receipt of digital assets) but what is actually proposed actually sounds even more like a way for shady startups to earn money from suckers than ICOs. At least with some ICOs there was a theoretical logic behind selling tokens supposedly used to acquire product (and liquidity benefits)

This is just equity crowdfunding with the word blockchain involved, and as a result probably more dishonest or deluded companies and a greater likelihood the securities aren't even legally valid never mind attached to genuine prospects of profit, never mind attached to prospects of profit adequate to make up for the asset's lack of liquidity.

(Reading more details in their terrible white paper, the only difference between this and a completely standard security is that in order to pretend it's a "loan" they've offered to "repay the principal" at "maturity" i.e. buy back the security in 10 years' time at the price you paid for it. Which would theoretically be a good idea for an stock in a low growth business, and also a great way of creating a relatively stable Ponzi scheme...)

Seriously though, just look at this utter nonsense: https://blockhive.ee/ilp