The #1 Issue Every Blockchain Startup Faces – Ingamar Ramirez
2018 was a year of a lot of ICO scams being brought to light, and sure, that trend doesn’t seem to be stopping any time soon. But there are some startups out there that are truly out to disrupt the world of traditional finance, and hopefully without shooting themselves in the foot.
Well, guess how that’s going.
At Moon Inc. we see a lot of startups on the verge of closing down due to administrative, legal and banking oversights, and that is part of what we’re out here to solve.
To give you an example, imagine this: it’s January 2018 and you’re a blockchain startup CEO who just finished a $20M Initial Coin Offering. What are the legal parameters you must take? Who has done this properly? How do you liquidate your assets as a blockchain company?
You have no clue. Your advisors, who you allotted millions of tokens to, don’t really do much except be a pretty face on your website. It’s a nascent industry, sure, but there is no one you know who can truly decrypt these answers. Where do you get your legal opinion? Slovenia? Malta? London? Which law firms are most established among the banks & exchanges? Even if you knew which country and firm, do you know someone who can introduce you to them?
Next thing you know, you have $20 million worth of BTC and ETH in a frozen account, because you had your investors send it to your retail wallet. Of course, this exchange’s reaction will be “Who the hell is this kid? Until we get to the bottom of this (which will take months), let’s flag his ass.” You are unable to liquidate your BTC and ETH into dollars, preventing you from, you know, running your business.
Seeing this from the outside, you might think this is one of the most careless moves to make, and no one would ever do this- especially for a crypto startup. But like I said, this is crypto; we see shortsighted maneuvers like this all the time.
Months go by, and BTC/ETH are going down in value daily. Who are you gonna call? You don’t know anybody at . The money you raised to build your business- hire your developers, open your WeWork space, market your product — is burning like King’s Landing.
This is an industry unlike any other. Uber could get away with not following every compliant hoop to operate their business in NYC, because they were under an entirely different legal landscape. But when it comes to money and finance, the feds simply do not play. You better have the right legal entities and banking facilities in place, or you’ll simply get shut down.
So back to your frozen account: it’s been 6–7 months since your account got flagged, and your raise went from $20 million worth of BTC/ETH to under $10 million. Nightmare scenario, am I right?
By the time you discover Moon Inc. can help you out through their relationships with , most of the damage has been done. But hey, if you can finesse another round of fundraising, all will not be for nought. Your business can still get back on its feet. Yes, it did cost you some money to get this problem solved. But can you really put a price on rescuing your own startup? Probably not.
“If a consultant is being paid to do something, it better revolve around solving problems. This should result in saved time, legal headache, and money,” says CEO of Moon Inc., Alex Nguyen.
You’re probably wondering how we have this kind of knowledge and relationships with these exchanges. The short answer is, we have a pay-it-forward mentality when building relationships, so when the time comes we ask for help, our friends have our back.
If you have questions or things you might need help with from banking, legal, marketing or exchange listings, feel free to hit me up at ingamar@mooninc.global.
Published at Fri, 09 Aug 2019 15:48:16 +0000
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By antwerpenR on 2013-09-19 04:23:58
