Strategy

Security Token Offerings: A Cautionary Tale of Reg D Offerings

In 2012 the Jumpstart Our Business Startups (JOBS) Act was signed into law by President Barack Obama. It required the SEC to write rules and issue studies on capital formation, disclosure, and registration requirements. There were three main areas that the investment community took notice… Read More

Investment Crowdfunding Platform MicroVentures Eliminates All Fees for Reg CF Issuers, Expects Growing Utilization of Online Capital Formation in 2019

MicroVentures, an equity crowdfunding platform, has just announced the elimination of all fees associated with issuers using Regulation Crowdfunding (Reg CF). MicroVentures says “gone are the days of high commissions and equity compensation for funding portals.” A quick visit to their site and you may… Read More

Why Have Offshore Financial Centres Become the Home of ICOs?

Initial Coin Offerings (ICOs) are booming in offshore financial centres. In 2017, only a small minority of cryptocurrency transactions were taking place offshore but just a year later, according to a study by PriceWaterhouseCoopers and CryptoValley, the Cayman Islands, British Virgin Islands (BVI) and Singapore… Read More

The Hot Air Revolution? McKinsey Consultancy Says Blockchain Struggling to Mature

Management consultancy McKinsey & Company have published an elegant analysis of enterprise blockchain called “Blockchain’s Occam,” stating: “A key to finding the value is to apply the technology only when it is the simplest solution available.” Blockchain has been touted as a revolutionary technology capable… Read More

Opening the Floodgates: What is Holding Back the Crowdfunding Tsunami?

Equity crowdfunding platforms have democratized the way that individuals and organizations raise and invest capital, by lowering the previously high barrier to entry for investment. And, ever since these platforms emerged, expectations have been high about the effects that this new utilitarian form of investment… Read More

OTC Markets Responds to Reg A+ Securities Trading Questions, Comments on New SEC Rule that Allows Listed Firms to Raise Capital Under the Exemption

This week, CI reported about a problem for Regulation A issuers (or Reg A+ as it is called). Speaking with Mark Elenowitz, a Wall Street veteran and CEO of Tripoint Global and Bank, he explained a nagging problem for issuers using the security exemption who… Read More

Peak Hype or Next Wave? KPMG Talks Corporate Blockchain Usage as Momentum Builds

Blockchain or distributed ledger technology (DLT) has been a red-hot topic in the financial services industry the past few years. The one-two punch of Bitcoin excitement and the Ethereum fueled revelation of smart contracts and decentralization, caused many to label blockchain internet 3.0. But is… Read More

Mark Elenowitz: Reg A+ Issuers that Want to Trade on OTC Markets Have a Problem

Today, Reg A+ received a big boost from the Securities and Exchange Commission (SEC) as they announced that reporting firms will soon be able to use the security exemption. Old Regulation A was an exemption that just about no one used – ever. It took… Read More

Stablecoin TrueUSD Tops $200 Million in Market Cap & Over $1 Billion in Monthly Trading while Focusing on Compliance: “Tokenizing Assets is the Next Big Wave”

Stablecoins are currently a hot sector of crypto. Tied to an asset like fiat currency like the US dollar, or a commodity, these digital currencies are designed not to fluctuate dramatically in a crypto world with endemic volatility. A recent report indicated that more than… Read More

A Potential Pathway Forward for U.S. Initial Coin Offerings

This summer, with little fanfare, the North American Securities Administrators Association (NASAA) announced some interesting and, in our view, directionally enlightened ideas on potential changes to state securities laws as they relate to secondary market trading. If you aren’t familiar with NASAA, it is a… Read More

What the SEC’s ICO Crackdown Means For You

Recently, the Securities and Exchange Commission (SEC) has been actively pursuing all players in the initial coin offering (ICO) space, including companies that have raised money with ICOs, an exchange, people promoting ICOs, and most recently, an ICO investment fund. The SEC’s recent actions are… Read More

Crypto Pump-and-Dump Groups Creating $7 Million a Month in Fake Volume

Security researchers from the Imperial College of London say cryptocurrency pump-and-dump schemes are creating at least $7 million a month in fake volume, money presumably scalped from crypto traders not in the loop, Technology Review reports. On November 14th, for example, researchers Jiahua Xu and Benjamin… Read More

Crowdcube to Offer New Support Program with Thrive for Fintech, Includes Legal & Accounting Plus Some VC Money

Crowdcube, the UK’s largest investment crowdfunding platform, has announced a new service, “Thrive for Fintech.” Crowdcube explains that Thrive is a “series of support programmes for companies raising on Crowdcube, where [they] partner with leading VCs, and top-tier law and accounting firms to help companies… Read More

Initial Coin Offerings: I Have to File a Form 10? Great! What’s a Form 10?

Those who have read the SEC settlements with AirFox (CarrierEQ.Inc.) and Paragon Coin, Inc. published on November 16, 2018, will note that the defendant ICO issuers agreed, among other things, to register their “coins” under the Exchange Act (the Securities Exchange Act of 1934) by filing… Read More

SAFEs 2.0: YCombinator Updates the Form

In late 2013, seed accelerator YCombinator introduced the SAFE (simple agreement for future equity) – a convertible instrument designed to make seed stage investing quicker and less expensive. The SAFEs quickly became a popular structure for seed investing.  Early this fall, YCombinator introduced several changes… Read More

Report: Favourable Crypto Reviews Often Bought

That favourable review of a favourite cryptocurrency project was likely bought, Reuters is reporting today in an extensive exposé. “Rating ‘experts’ will grade anything positively, for a price,” write the article’s co-authors, Anna Irrera and Elizabeth Dilts. The two say the story they uncovered in data and documents were confirmed… Read More

Blockchain, Security Tokens and SEC Regulation A+: A Deeper Dive Into the Regulatory Jungle

As the expression goes:  “Look before you leap.”  But if you are an innovator, determined to blaze a trail never before navigated – there is not much to look at. Being a pioneer can be a lonely and dangerous adventure.  Nothing could be more true… Read More

Navigating Uncharted Waters in this Crypto Bear Market

At the tail end of 2017, all eyes turned to the cryptocurrency industry when Bitcoin’s price soared to reach nearly $20,000 per coin. Articles were written, hands were shaken, and early investors in the digital currency had a very good holiday season indeed. But that… Read More

Case Against Airfox and Paragon Initial Coin Offerings Makes Abundantly Clear SEC’s Approach to Post DAO ICOs

Last Friday, the SEC settled charges against two companies, CarrierEQ Inc. dba Airfox (“Airfox”) and Paragon Coin Inc. (“Paragon”), which raised money with initial coin offerings (“ICOs”).  The SEC found that both companies violated the registration provisions of the U.S. securities laws because neither company… Read More

How (Not) to Market Your Regulation A+ Mini-IPO Offering

SEC Regulation A (commonly referred to as Regulation A+) was implemented by the SEC in 2015 pursuant to major Congressional legislation, the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). It allows companies to raise up to $50 million in a 12 month… Read More

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