Posts Tagged ‘jean-nicolas’

Allowing investors to participate in the upside of Blockchain Capital’s venture fund, the key advantage the tokens provide is allowing investors to have liquidity long before more traditional venture capital shares mature. If we assume that tokens are an investment, the question naturally arises: When are token-based investing strategies worth pursuing – both for issuers and for potential investors? Channing’s take on this question, from the perspective of the issuer’s advisor, is instructive. First, Argo

Source: Tokens Can Be Securities? Even ICO Advisors Agree with the SEC – CoinDesk

The document defines ‘digital tokens’ as a “cryptographically-secured representation of a token-holder’s rights to receive a benefit or to perform specified functions.” Virtual currencies are defined as “one particular type of digital token, which typically functions as a medium of exchange, a unit of account or a store of value.”

Source: Singapore Central Bank Clarifies ICO Regulations

“It is now clear that some digital currencies will be viewed as securities, depending on how the tokens or coins are structured,” Spencer details. “Secondly, and more importantly, it is now clear that the regulators and law enforcement in the United States will be enforcing these laws. The pipeline for ICO’s just got a lot smaller.”

Source: The End of the ICO Wild West? Blockchain Advocates Weigh In On SEC Report – Bitcoin News

Chris Burniske, blockchain products lead at ARK Investment Management, the first public fund manager to invest in bitcoin, explained, “It’s important for us to figure out what’s utility and what’s speculative, because, in times of correction, we will likely compress through speculative value until we hit utility value.”

… fielding an audience question about why a startup would go for an ICO in which it would raise a lot of money but also give away much of the company with a low probability of being able to get more funding, Wilson responded, “If you think about it as just a way to finance your company, you’re not thinking about it properly. The way to think about it is that the token is also the native monetization model for your business, and if you execute your business well, the value of that token should rise as the utility of the product you ship goes up in value.” Then, he said, though you’re giving away a lot of the tokens right away, the value of the tokens you keep should rise substantially and net you a tidy profit. For example, he and Mougayar speculated that Ethereum founder Vitalik Buterin had a half percent of all Ethers, which at that moment was about $90 million.

Source: Bubble? So What? Token Summit Marks Cryptocurrency’s Revitalization