View profile

VeradiVerdict - SEC Crackdown - Issue #12

Hi, I am Paul Veradittakit, a Partner at Pantera Capital, one of the oldest and largest institutional
November 20 · Issue #12 · View online
Hi, I am Paul Veradittakit, a Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing into blockchain companies and cryptocurrencies. I focus on early investments and want to share my thoughts and what’s going on in the industry in this weekly newsletter.

View and comment this newsletter on Medium

The big news from the SEC came out last week that it had settled registration charges with two ICOs, Airfox and Paragon, after publishing its guidance on ICOs in 2017. Airfox raised $15 million in its ICO, and Paragon raised $12 million.

The SEC ruled that each company’s token was a security, and these two companies broke SEC law because they failed to comply with existing rules governing the registration of securities. In response, both companies agreed to reimburse harmed investors in their ICOs, pay $250K in fines and register their tokens as securities.

It looks like the days of quick returns on ICOs and selling to the public is over. ICOs are now considering tokens as possible securities and are taking a few steps to protect themselves:

1) Selling only to accredited investors
2) Waiting at least a year from the private sale to the token generation event to comply with traditional securities laws
3) Excluding US investors
Mapping out the Security Token Ecosystem
Augur’s Antifragility: A Few Thoughts
The Next Step in Cryptoasset Valuation
In the Tweets
Chris Burniske
Bear markets strengthen the survivors. It's okay to feel sick through the process, it's these depths that later give strength.
6:44 AM - 19 Nov 2018
Jameson Lopp
No, Bitcoin isn't dying - it's just preparing for this year's Black Friday sale.
10:13 AM - 19 Nov 2018
Twitter: Bitcoin Scams Came from Third-Party Marketing App
Tencent Games Forms Partnership with Blockchain Esports Platform
Malaysia Launches Blockchain Certificate Verification to Combat Degree Fraud
Nvidia Stock Didn't Drop Due to Crypto Bear Market, Inaccurate Claims
Thailand's Main Opposition Party Holds Primary Election on Blockchain
Christie's Records $318 Million Art Sale on a Blockchain
Aussie Crypto Startup Power Ledger Brings P2P Energy Trading to Largest US Market
The SEC cracks down on two ICOs, creating a template for future enforcement
Lawyer: Phase Two of SEC's Enforcement is Slow Painful Grind For Crypto
New Products and Hot Deals
Activision Blizzard vets raise $16 million for item-based blockchain gaming platform
Crypto Exchange KuCoin Raises $20 Million From IDG, Matrix, Neo Global
Big Investors Put $2.25 Million Behind Bitcoin Reward Startup Lolli
Meet with Me
I will be traveling this fall for certain events, and to meet with investors. Let me know if you and your colleagues would like to meet in person.

Miami, November 20
Los Angeles, November 21
New York, Consensus Invest, November 27
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue