Crypto evangelists are looking at ICOs as a bad three letter abbreviation, while start-ups are looking to raise $50 mil for their whitepaper after a few weeks of incorporation.
The world of blockchain startups is at its pivot point. Companies, investors and government officials are at odds with how this crypto world can continue without company CEOs in jail, investors getting scammed and regulators trying to catch up.
STO (SECURITY TOKEN OFFERING)
We are entering the world of the STO (security token offering). As Shakespeare said, “a rose by any other name would smell as sweet”, but maybe not in this case. ICOs have been spotlighted since last June with their $100 mil raises and the exit scams that have soured some investors and public view at large of this phenomenon. To appease the ever grey and not so concise SEC , European and Asian regulations they term STO has been coined (no pun intended) to make the process sound more legitimate.
WHAT IS AN STO?
Well to listen to the experts at the sold out Crypto conferences an STO is an equity crowdfunded raise for the company. STOs are more regulated, open to Accredited investors only and have a the usual high-end Silicon Valley top dogs promoting with their “we take equity in the form of tokens” pitch. Where does this leave the decentralized open to all networks, the new paradigm shift in investing, the blah blah blah talk we have heard. It leaves us exactly where we were and have always been. You will most likely only succeed if you bow before the VCs in the Silicon Valley and let them fund your project and place their people in it.
ICOS AND STOS THE EMPEROR’S NEW CLOTHES
Nothing has changed just more start-ups getting acquired and build by the elite who have stakes in multiple companies at the same time doing the same thing. How can the same advisor ethically advise 15 companies at the same time?
THE CRYPTO BANDWAGON
Internet shills like Tai Lopez are building ICOs and being offered places on panels as experts in crypto space. Brock Pierce once hailed as a hero or now a new age spiritual guru and Roger Ver continues to vent and stamp his feet about his opinions. Meanwhile companies are trying to safely navigate and raise capital. The Crypto Invest Summit in LA offers a huge theater for Investors, Companies and Novices to walk around drinking starbucks and patting each other on the back.
LETS GET TO WORK.
Here is the point. We need to get to work, we need to start doing what the true evangelists the true Satoshi vision. We as a community, founders and investors need to look at what this is. We need to fix the economic problems not make the same mistakes again. The Blockchain and crypto world needs to stop grandstanding and start building the future, not talking about it. The ICOs need to stop begging for cash and get to work and the STOs need to start building a something beyond a great pitch.
EQUITY FUND
Equity Fund offers accredited investors the opportunity to invest in STOs. We take emerging companies and help build the vision. Sign Up today to become part of that vision.