New US Regulation, A Fresh Breath Of Air For ICOs – ALTCOIN MAGAZINE
If in the early 2017 not a lot of people knew what ICOs were and how they worked and only looked at the potential gains, in 2018, this changed when the vast majority of projects started to fail and investors started losing their money. Because from early 2018, we have witnessed the downfall of ICOs and the amounts they can raise, we have explored the possibilities of STOs, IEOs and other ways of fundraising can bring for blockchain startups. In the end, it seems that ICOs are still the fundraising method preferred by many, although the lack of trust in blockchain projects has had a bad impact on the overall industry.
The recent turn of events coming out of the US are giving the industry a new hope. After an extensive effort by Blockstack in working with the legislators, they have managed to get the SEC‘s approval for a 28 mil. $ raise under Reg A+. With Reg A+ ICOs can be conducted under clear regulations and, as we all know it, when it comes to fundraising, everybody is looking at the US market and especially at retail investors which can pitch in “their 100$”.
Created by the Jumpstart Our Business (JOBS) Act in 2012, Reg A+ aims to encourage small business’ growth and development by streamlining the process of going public and easing barriers on the number of non-accredited investors a company can have. The JOBS Act went into effect in 2015. Reg A+ has a series of interesting characteristics:
– The regulation is allowing ICOs to take retail investors into the coin offering
– It makes it possible to raise as much as up to 50 mil. $ from retail investors and not only from so-called accredited investors.
– Allows startups to combine public funding with VC funding, thus optimizing the fundraising process.
Small businesses and startups have the option to sell tokens using an easier and less expensive process. If Blockcstack spends ~ 2mil. $ to achieve this, it does not mean that everyone who wants to do an ICO will have a bill of 2 mil. $. This is simply because now we know the ways of doing it and lawyers don’t need to undergo all the proceedings from the grown-up.
As mentioned, we often see in ICOs a way by which small startups can actually access funding and get the community they need on their side. Now, with Blockstack, paving the way for a regulated environment we are confident that people are going to be looking extensively into the ICO landscape again.
This time around we should see projects that are serious about their work and are in the game for the long run, as they will be looked after by the SEC. Nevertheless, this is a small price to pay in for having the chance to access the US market and the funding capabilities of US retail investors.
All we can do now is be on the lookout for projects signing up for Reg A+ approval and track their progress as they go to the market. One thing is clear — ICOs and fundraising methods for blockchain startups are a trend that is not giving in to pressures and legal hurdles. On the contrary, it will always find a way to adapt and make it work.
Published at Thu, 01 Aug 2019 03:42:28 +0000
Bitcoin Pic Of The Moment
Colloque "Moyens de paiement", Bercy
1er décembre 2014
www.rencontres-competitivite-numerique.com/moyens-de-paie…
By Pierre Metivier on 2014-12-01 09:59:21
