SEC Issues Latest Warnings on Digital Token Transactions
SEC, the United State’s stock market regulator, apprised their investors again about the latest on crypto fundraising in an investor alert published just last month which urged them to be cautious in digital token transactions offered to the public through various exchanges as there have become many more alternative fundraising models in the past decade alone, what with ICOs, IEOs, STOs and RTOs. Even the traditional IPOs are being left in the dust with all of these rushing in to take first place in the wallets of many. However, one needs to do their own study and come up with their own conclusions first before they open said wallets for future investment, which is what the SEC is trying to get at here.
As opposed to other fundraising strategies popularized on previous generations, people now swap either bitcoin and ether for digital tokens issued directly by startups. Some of which are directly administered by either the startup (ICO) or by a digital token offering exchange (IEO), very much akin to hosting fundraising events through Kickstarter or GoFundMe, very much different from the personal bake sales of old.
The idea is that through these fundraising methods, it allows even the average Joe to be like a wall street guy. But where is the security in that? Well in IEOs, said various exchanges’ roles are somewhat of a gatekeeper of sorts, making sure that they vet new projects before they seek money from the investing public, of course. In ICOs, you’ll just have to take the startup’s word for it, which is most likely why there have been many many scams on this end. As you can see, there’s a really clear conflict of interest in ICOs, but IEOs, platforms could possibly be operating illegally (?) with regards to their ways of selling unregistered securities to US investors. One needs to make 100% sure that their chosen investments fall to neither.
In the world of Crypto, finding the right people to do the job can be troublesome and difficult at best. This is why at FIAT Exchange, we offer an all-in-one service encompassing everything there is to launching a token offering, as well as ensuring that everything is safe and transparent with all of the legalities done first. As a pioneer in the consensus industry, we offer the tools to democratize access to finance and through our platform, investors, start-ups and established companies are able to find opportunities they otherwise never would have.
At FIAT Exchange, we have consultants to help innovative start-ups, promising businesses and even well-established corporations launch their own Initial Exchange Offering, Initial Coin Offering, Security Token Offering or Reverse Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.
While there already are other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.
If you are an Investor looking to unlock access in the FIAT Exchange ecosystem and discover new investment opportunities or if you are an Entrepreneur looking to raise capital, we can definitely help! Please feel free to contact us: support@fiatxs.com
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