Last month, Origin Protocol reported on the results of its initial offering on CoinList. The company shared that it successfully raised over $6 million with $2 million of that amount being committed within the first 5 minutes of the offering.
Today, Origin Protocol has shared they will be allowing a far wider audience to access their tokens via an additional distribution. Unfortunately, due to existing securities law in the US the offering will not be available to a domestic audience.
The forthcoming public sales is said to entail two separate objections:
- Distribute Origin tokens to international (non-US) buyers, sellers, and DApp developer partners to be used on the platform
- Comply with all applicable United States and international securities and other regulatory laws
Origin added that this means they are taking “active measures to push forward the distribution and immediate usage of the Origin token while taking a conservative legal stance.”
Origin notes that the regulatory landscape in the US is “uncertain” as the entire industry is waiting on definitive guidance from the Securities and Exchange Commission.
Effectively, the SEC currently believes that all initial coin offerings (ICOs) are securities and thus regulated under existing law.
“Given this lack of clarity, we are forced to take careful measures to protect ourselves as a company and community-owned platform. We are eagerly looking forward to more clarity from US regulatory bodies that have traditionally been very supportive of innovative technologies. As long-time Silicon Valley entrepreneurs, we believe intentional and timely action is necessary to ensure the United States can be the center of blockchain innovation (versus ceding this to international technology hubs).”
Origin added that it will be applying rigorous KYC standards to make absolutely certain no US investors can participate in the token sale. While issued tokens to international investors will be immediately usable on the Origin platform, the company said it will temporarily lock the tokens for an undisclosed period of time following the sale. This is to block any possible transfers back to US investors and, of course, halt any unintended securities violations. Some US investors have skirted the current ICO challenges by simply creating corporate entities off shore.
Origin is in the process of building the “backbone for decentralized peer to peer commerce.” The platform, which is expected to be live before the end of 2018, seeks to empower multiple decentralized marketplaces for goods and services in a distributed commercial marketplace of many different verticals.
Management at Origin recognizes the fact they can only be successful “if millions of users across the world contribute to buyer / seller liquidity (goods and services being listed), build trustworthy identities and reputations, and ultimately transact safely and effortlessly with each other.”
The Origin token is key to these transactions.
Expect more information in the coming weeks with the public sell outside the US to take place before the end of the year.
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