Remember Turnkey Jet? The first no-action letter recipient for a digital asset, or token, that was deemed not to be a security by the Securities and Exchange Commission. We do, but we have heard little about the company since the news hit. The Turnkey Jet website is still around but little else seems to be going on (the Facebook link on their website goes to a Wix page?).
Now we have Jet Tokens traipsing down the same path, it seems.
Not too long ago, Jet Token completed a Reg CF offering on StartEngine, backed by more than 3700 investors, raising the maximum amount under current rules. The concept is to:
“… use a single platform to book a new HondaJet, or one of 4,000 other private jets, and pay with either cash or blockchain currencies. Eventually, we plan for members to be able to use credit for flight time on private jets or on any commercial airline. Jet Token innovations offer travelers more freedom and more choice; but we need your vote.”
Jet Token is planning to raise more money to execute on their vision of “democratizing private jet travel” – something I am all for.
The company is looking to raise up to $10 million in a Reg A+ offering, according to the offering circular (which was recently updated).
Jet Token explains their concept:
“We ultimately intend to issue and sell Jet Tokens on our closed blockchain Network that would be redeemable for time on our HondaJets as well as for private jet travel with third party carriers. Currently, digital assets such as our proposed Jet Token, depending on their structure and rules of use, may be considered a security and the issuance and sale may be subject to registration under the Securities Act. We are currently developing and testing our Jet Tokens and formalizing the rules of their use on our platform. However, we have not yet applied for no action relief with the Securities and Exchange Commission and do not intend to issue and sell Jet Token without such no action relief. Qualification of this Offering Statement should not be read as an endorsement by the Securities and Exchange Commission of our separate and independent pursuit of no action relief from the Commission.”
“We envision a time in which a client purchases from us a jet hour card using cash or blockchain currency and in return receives Jet Tokens redeemable for travel, or maintains funds in a wallet on our platform for purchase of travel, on our fleet, with third party jet operators or on commercial airlines. Through our App the client would seamlessly access their Jet Token balance in their Wallet on the Network; Jet Tokens would be one payment option on the App alongside fiat currency, bitcoin and other blockchain currencies. An integrated marketplace for private jet and commercial jet travel (arrivals, departures, aircraft description, aircraft photos, taxes, prices) has the potential to offer improved access to services for aircraft operators and travelers. We believe aircraft operators would achieve higher revenue per seat mile by filling an otherwise empty plane, and travelers would achieve access to on-demand travel at a lower average cost because of greater market transparency and improved price discovery.”
So that is Jet Token’s goal. Investors will be receiving common shares in the company if the offering is qualified by the SEC.
Question, though. Do you really need a token to purchase private jet travel? Why bother?
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!