Initial Coin Offering News of the Day: From the “not your father’s IPO” file. Well Matilda, the genie is out of the bottle, and we’d opine that try as they might, legacy securities industry players will either get on the bus or get run over. Evidenced by the fact that mainstream business news portals as well as securities industry news outlets are moving quickly to create new silos to report about bitcoin trading news, and more important, the “not your father’s IPO” topic of Initial Coin Offerings (ICOs). Well-regarded outlets are now profiling the good, bad and just plain stupid approaches that startups and even seasoned Issuers are advancing in the course of raising capital for cryptocurrency-centric initiatives. With that, a nice round of applause goes to sell-side stalwart Traders Magazine and senior editor John D’Antona Jr. for reporting about ‘the world’s first crypto asset pre-sale” promulgated under the SEC’s Regulation Crowdfunding, aka “Reg CF.”
(Traders Magazine Dec 09) Indeco announced the world’s first crypto asset pre-sale under the SEC’s rules for Regulation Crowdfunding (“Reg CF”). Reg CF allows everyone, regardless of their net worth or income level, to invest in securities issued by startup companies.
Indeco is offering its token pre-sale on StartEngine, a crowdinvesting platform that is regulated by the SEC regulations. StartEngine’s CEO, Howard Marks, validated Indeco’s plans in a recent blog post, “The right solution is to ask ICOs to use one of the SEC exemptions, which include Regulation Crowdfunding to raise up to $1M, Regulation A+ to raise up to $50M, or Regulation D 506(C) to raise an unlimited amount from accredited investors… The SEC exemptions also allow investors to make informed decisions because they require documentation disclosure requirements.”
Indeco is described as a shared ownership model of sustainable infrastructure assets such as solar energy systems, battery storage and the building control systems that may make dwellings and communities smarter, safer and cleaner. Indeco also announced the company has joined the fall 2017 cohort of Smart City Works, a business actuator and accelerator for startups reinventing the built environment.
The SEC has been strongly messaging their belief that pretty much all ICOs are securities and thus regulated. Issuers that do not file an appropriate exemption may be in breach of securities laws. Just yesterday, the SEC Enforcement Division forced an emergency asset freeze on PlexCoin, a Quebec based ICO. PlexCoin had raised millions of dollars in a token offering that was described as a fraud by the SEC
“We are committed to complying with SEC rules and regulations in this pre-sale period, in our proposed ICO, and throughout secondary market trading,” said David Levine, Indeco CEO. “We believe all crypto assets will be subject to regulatory scrutiny, and we plan to create substantial value for our investors by proactively developing a compliant offering.”
This year, the SEC investigated one token, issued by The DAO, and determined that the crypto asset was a security and therefore subject to federal securities laws. The SEC’s report “confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies.”By complying with the rules and regulations governing the issuance of securities, Indeco intends to create exceptional value and a positive experience for all participants in our independent ecosystem.
According to Prospectus LLC team leader and Initial Coin Offering strategy consultant Evan Fisher, “In addition to its focus on regulatory compliance, Indeco is adhering to startup best practices with regard to organizational structure. The company has created a Board of Directors comprised of recognized industry and business professionals who bring integrity and a pedigree that is critical to any company.” Indeco board of directors includes a former CIA General Counsel, a former EVP at Viacom, and a former president of Miller Brewing Company: (continue reading at Traders Magazine)
Initial Coin Offering First Inning : Indeco ICO Gets on Base via Reg CF