Beverly Hills Blockchain, Bitcoin, Ethereum, ICO – April 16, 2018

Beverly Hills Blockchain, Bitcoin, Ethereum, ICO – April 16, 2018


JIMMY GORHAM: I don’t think there is a standard
model for security tokens yet.
I feel like a lot of companies are borrowing
from traditional securities, traditional models
of equity and things like that.
But, with Crypto there’s a lot of room for
innovation and I think there’s still going
to be a lot to come that people haven’t quite
thought of yet.
EDUARDO ARGUETA: I think the rise of the ICO’s
in 2017 is … it really shows how much of
an opportunity was being underserved by the
current financial structures of funding for
start ups.
That’s really one of the main issues that
took businesses to consider other type of
investment vehicles and fundraising vehicles,
which is an ICO.
It’s just a lot of these businesses were not
being served correctly by current financial
industry.
So like we learned today, venture capital
has been turned on its head forever and ICO
are a great new way, if managed correctly,
to raise these funds that companies need badly
to take things global.
JIMMY GORHAM: I think 2018 is going to be
a really interesting year to see how security
tokens develop.
Right now from everyone I’m talking to, people
know that that’s the direction we’re moving
in, but there’s still a lot of wait and see
mentality.
So I think there’ll be more clarity by the
end of the year into 2019.
SHASHANK SRIPADA: The rise of the security
token in 2018 I think is an unfortunate event.
I just believe that there’s a bit of a miscommunication
with SCC.
I mean, they need to either define what a
security token is, or they need to allow utility
tokens to exist, because the rest of the world
is not on board with that.
They are going ahead and allowing innovation
to happen.
The SCC in the US has really stifled that.
With us we are ranked D in the US, and we
have to be a security token, but if you give
us a full security framework, we are more
than willing to assign equity and pay out
dividends and voting rights.
But we can neither do that nor can we do a
utility token, which we truly are at the heart.
I think there needs to be more analysis and
they need to act quicker because other places
in the world are far ahead of the US.
JIMMY GORHAM: I think there’s still a role
for utility tokens, and it’s going to be … its
kind of incumbent to the designers of these
new technologies to incorporate the best of
both worlds, and take the investor protections
on the security side and combine it with the
liquidity, and some of the unique capabilities
of utility tokens to try to merge that together
in the future.
The security token hype, it will be interesting
to see if it lives up to expectations.
On the one hand, some public companies are
talking about tokenizing their existing security
offerings that are now stock.
Something like that would just be a huge game
changer.
But on top of that, there’s still a lot of
companies that are trying to raise money for
their crypto currency projects and if they
want to be legitimate at least in the United
States, that means security tokens.
So I think we will see a lot of projects this
year.
DAN MAPES: Historically, the way we raised
money for a venture was to raise money from
friends and family, then NGO’s, then eventually
capital A round, then a B round, then a C
round.
Now we actually can go to the public, and
if we raise enough money in our first round;
whether it’s in a pre sale or even a private
sale, we may have enough there that we don’t
even actually bother to do a public sale.
So really it’s just the entrepreneurs looking
at the situation and going like, “Okay,
we hit 20 million or 30 million or whatever
it is, that’s probably enough for right now.
We can build everything we want to build with
that.”
So I think it’s just really the entrepreneur
working with their public support.
SHASHANK SRIPADA: I don’t think everyone needs
to do a presale, I mean we raised a lot of
money in our private sale for BubbleO, but
actually we are still going ahead with the
mainsale because we are a consumer app.
Part of the reason we even are doing an ICO
is because it’s a community building effort.
It gets us users, it gets us a community that’s
actively engaged.
I think that’s what you need to look at before
starting to do a mainsale.
Because, are we doing it just for cash or
are you doing it for the right reasons?
Is the way we got to look at it.
Is it going to be able to sustain a token
economy that’s beneficial to everyone invested
and using the token.
DAN MAPES: The cool thing about a token is
it’s a new asset class.
It’s neither a utility, nor a security, nor
even a currency, it’s all of them.
In the past we had money, we had stock, and
we had gold or things like that as commodities.
The token actually can function as any one
of those things and probably other things
as well.
Tokens a new animal, so it doesn’t really
fit in any of the old categories.
Although it can fit in them somewhat.
It can be used like a security, it can be
used as a currency, it can be used as a commodity
but it’s not any one of those things.
So it’s going to take us a while to learn
about them and how to govern them.
In the meantime, SCC and everybody is going
to have a lot of concerns about them and try
to apply old models to them; they are not
going to work very well.
And we’re going to take us a while to learn
what they really are and we use them.

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