Republic is claiming a first. The crowdfunding platform is in the process of doing an Airdrop under Reg CF.
Reg CF is a securities exemption where issuers may raise up to $1.07 million. Airdrops are used to disseminate digital assets which may be used to access a network or, perhaps, trade on a marketplace at some point in the future.
The Althea Airdrop on Republic Crypto, which is free to registered users (if you watch a video or commit to set up a node), is to boost interest in a decentralized internet service provider.
To quote Republic:
“Creating large-scale crypto networks is difficult. “Airdropping” tokens or securities (i.e. giving them away) is a great way to incentivize people to participate in early projects. While participating might not cost you any money, Althea is gaining users and valuable data from this campaign. To learn more about airdrops and why they are important, read our in-depth report.”
The concept is interesting. Althea seeks to provide faster, cheaper internet service. A good thing in my opinion. Instead of a single ISP hoovering up all of the money, Althea wants to build many different decentralized ISPs providing the service with node operators receiving remuneration in crypto – the Althea token or ALTG.
Althea is distributing one million tokens in the first-ever security token airdrop. Anyone over the age of 18 may participate.
Crowdfund Insider spoke to an individual with knowledge of the process who provided additional insight into the crypto Aidrop:
The individual said that Reg CF is the only method by which a company may legally provide securities or the right to securities to non-accredited investors without going through the costly and time-consuming Reg A+ offering structure.
Word on the street is that the recently qualified security token offerings for Props and Blockstack under Reg A+ cost each issuer $2 million to prep (or more).
Reg CF is also a form of crowd participation, just like a standard airdrop, meaning the interests of the rules match the desired result of the airdrop, wide participation and distribution. The insider said that certain parts of Blockstack and Props’ offerings have airdrop like features.
“…we anticipate more companies using Reg CF and Reg A+ to provide securities to the crowd without collecting cash consideration.”
It appears that Republic aims to lead this initiative.
If you are interested, you may sign up for the free tokens (minus some of your time) on Republic now.
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