If You Smell a Fishy ICO, It’s Probably Fish
Today, the ICO market is young and wild and its investors are sucked in the craze. Cryptocurrencies and blockchain are predicted by many to be at the forefront of what many technology experts are calling the modern-day version of the industrial revolution.
Oddly, the man leading the potential upheaval of Wall Street, is nowhere to be found. Satoshi Nakamoto is reported to have developed the first cryptocurrency known as Bitcoin in 2008 and then immediately went into hiding. Many say, he did this in fear of government prosecution and to protect his massive cryptocurrency wealth. Perhaps Satoshi is not even a man but a group of individuals.
Cut to this year and cryptocurrencies are the perfect storm at the perfect time given our economic climate — they remove the need for financial transactions to occur only within government regulated banks. It bucks the system, a very popular notion today.
While the power of the blockchain promises an inherently bright future due to its immutability and in its inherent trustless system bucking the need for centralized middlemen, there are some companies exploiting the fact that it’s today’s trending topic for many, including the novice investor.
Now that cryptocurrencies have made it to the mainstream media, many startups are attempting to raise money via ICO by capitalizing on the hype and hoping token buyers don’t realize they don’t have a single line of code written or legitimate product roadmap.
While there are many companies launching legitimate ICOs, there are also ones trying to take advantage of the less technically savvy investor. You know — the ones who are intrigued by the technology but lack the expertise to spot a well intentioned company versus one that is more opportunistic, or even worse, outright fraudulent.
I’m happy to say that Loci’s ICO is everything but that.
We are pleased that the SEC recognized ICO’s can be a legitimate means of fundraising while sending a loud warning shot in their July announcement. We are going above and beyond to ensure that Loci complies with SEC regulation that is meant to protect investors.
Unlike the startups that are launching with just vaporware, we launched ours with an already developed, proven product — InnVenn. And, we believe so strongly in our product that our tokens are strictly utilitarian, meaning they can be used to access our platform and its services, InnVenn. This is not a fly by night fundraising effort to line the pockets of a few.
Furthermore, to ensure we are compliant with the SEC’s recent ruling on token sales, we have issued our own Simple Agreement for Future Tokens (SAFT). SAFT was developed by Protocol Labs and Y Combinator with the help of the experienced IP attorneys at Cooley LLP, who happens to be leading us through our ICO process as well.
We’ve democratized the patent process by making it more affordable and easier to search for patents. Now, innovators and inventors won’t need to spend thousands of dollars on IP attorneys or hundreds of hours searching the USPTO or other worldwide patent databases to bring their idea to life.
Additionally, InnVenn functions as a marketplace for innovators by connecting the people with ideas to those who have the R&D budget needed to prototype if the invention owner opts to release that information. We love being able to help people make the business connections they need to profit from their ideas.