DNotes 2.0 - Staking, CRISP Interest, DNotes Pay

[Dyna]

Why is there 128 million coins??? Isn't that a bit to much???

Sounds about right. I will let Joe confirm that later. We are expanding our team and Joe is very busy today with interviews. And I am also extremely busy preparing for my presentation at the World Funding Summit in LA later this week.

[1715109435]

1715109435

[1715109435]

1715109435

[1715109435]

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[1715109435]

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[2bfree]

Why is there 128 million coins??? Isn't that a bit to much???

Sounds about right. I will let Joe confirm that later. We are expanding our team and Joe is very busy today with interviews. And I am also extremely busy preparing for my presentation at the World Funding Summit in LA later this week.

Maybe I'm stupid but I don't see the answer to my original questions why do you have so many coins? Why not something more fair?

[2bfree]

I hate when coins ignore questions!

[Brandon Cheliak]

Why is there 128 million coins??? Isn't that a bit to much???

Sounds about right. I will let Joe confirm that later. We are expanding our team and Joe is very busy today with interviews. And I am also extremely busy preparing for my presentation at the World Funding Summit in LA later this week.

Maybe I'm stupid but I don't see the answer to my original questions why do you have so many coins? Why not something more fair?

What do you suggest?

[Dyna]

Why is there 128 million coins??? Isn't that a bit to much???

Sounds about right. I will let Joe confirm that later. We are expanding our team and Joe is very busy today with interviews. And I am also extremely busy preparing for my presentation at the World Funding Summit in LA later this week.

Maybe I'm stupid but I don't see the answer to my original questions why do you have so many coins? Why not something more fair?

Excuse me. You are right, I misunderstood your question.

There is no right answer whether 128 million coins is too many or too few. We all have an opinion and I respect that.

[2bfree]

Why is there 128 million coins??? Isn't that a bit to much???

Sounds about right. I will let Joe confirm that later. We are expanding our team and Joe is very busy today with interviews. And I am also extremely busy preparing for my presentation at the World Funding Summit in LA later this week.

Maybe I'm stupid but I don't see the answer to my original questions why do you have so many coins? Why not something more fair?

Excuse me. You are right, I misunderstood your question.

There is no right answer whether 128 million coins is too many or too few. We all have an opinion and I respect that.

Look at BTC they are are a billion times bigger then you they have 21 millions you are a billion times smaller then them you have 128 billion. So how is that an option? You have to many coins isn't that true and not option? Why did you try to take so many couns by printing why didn't you take less by printing less then taking less form us?

[Brandon Cheliak]

Why is there 128 million coins??? Isn't that a bit to much???

Sounds about right. I will let Joe confirm that later. We are expanding our team and Joe is very busy today with interviews. And I am also extremely busy preparing for my presentation at the World Funding Summit in LA later this week.

Maybe I'm stupid but I don't see the answer to my original questions why do you have so many coins? Why not something more fair?

Excuse me. You are right, I misunderstood your question.

There is no right answer whether 128 million coins is too many or too few. We all have an opinion and I respect that.

Look at BTC they are are a billion times bigger then you they have 21 millions you are a billion times smaller then them you have 128 billion. So how is that an option? You have to many coins isn't that true and not option? Why did you try to take so many couns by printing why didn't you take less by printing less then taking less form us?

The upside to having a highly deflationary model like Bitcoin is that when incoming supply becomes severely restricted, the price skyrockets (permitting demand remains constant) and everyone who invested early gets rich. The downside to having a deflationary model like Bitcoin is that the price skyrockets and puts investing in a meaningful way out of reach for the ordinary individual. This deflation will ultimately slow growth as alternatives that are more competitively priced can offer the same quality of services.

[wiser]

Ultimately number of coins doesn't matter, as the coins will find their value based on what the entire coin supply is worth. With that said, having a larger number of coins means that each coin will be worth a smaller amount and that could help keep costs of items purchased with that coin in terms of whole numbers. So Bitcoin has a limited supply of coins and each coin is worth over $6,000. That means that for the vast majority of ordinary purchases, it's going to be in decimals, like something will cost 0.001 BTC. That's not a problem, but just doesn't look as appealing. If you take a coin like NEM, for example, that has almost 9 Billion in circulation, and is currently valued at just under 20 cents, your average cup of coffee is going to be priced in terms of whole units rather than decimals, and overall that looks a bit better.

[Dyna]

Ultimately number of coins doesn't matter, as the coins will find their value based on what the entire coin supply is worth. With that said, having a larger number of coins means that each coin will be worth a smaller amount and that could help keep costs of items purchased with that coin in terms of whole numbers. So Bitcoin has a limited supply of coins and each coin is worth over $6,000. That means that for the vast majority of ordinary purchases, it's going to be in decimals, like something will cost 0.001 BTC. That's not a problem, but just doesn't look as appealing. If you take a coin like NEM, for example, that has almost 9 Billion in circulation, and is currently valued at just under 20 cents, your average cup of coffee is going to be priced in terms of whole units rather than decimals, and overall that looks a bit better.

Thank you, wiser.

[DCEBrief]

European Commission Studying Feasibility of EU Blockchain Infrastructure

https://dcebrief.com/european-commission-studying-feasibility-of-eu-blockchain-infrastructure/

[Dyna]

This is a small step, but a positive one towards cleaning up some of the deception in many of the ICOs:


Celebrities under SEC's radar for endorsing cryptocurrency products - https://www.techspot.com/news/71718-celebrities-under-sec-radar-endorsing-cryptocurrency-products.html

It would appear that the SEC is keeping an eye on ICO's, which is much needed at this point. Reckless negligence is rampant in our industry; it harms investors and it harms legitimate players. SEC Chief Jay Clayton has said, “I have yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security.” Which would make it necessary for these offerings to register with the SEC, prior to fundraising in the US. Another question I have is, would offerings conducted in another country, but accepting money from domestic investors, be required to register with the SEC as well?

The SEC ruling on ICO's this summer stated that anyone that sells securities (the majority of ICOs seem to fit the criteria) in the U.S., has to follow federal security laws. This would mean registration with the SEC, as well as following any other laws that securities are subject to.

I don’t like to play lawyer since I am not one. However, funding is a vital component of DNotes Global, Inc. but something I seldom discuss. You guess it – not until the time is right. But there is an obvious reason why DNotes Global, Inc. was incorporated in the State of Delaware earlier last year. (April 1, 2016) It is a strategic positioning to provide established records, including audited statements if necessary. At this point, I have provided 100% of the funding and legally control 100% of the ownership until such time when our legal team are certain of the best structure to transfer the 25% ownership to DNotes stakeholders – mostly likely to a foundation.

So here is my take on ICOs. I fear that the clear majority of ICOs are not just “tokens” but securities when come under close examination.  There are extreme risks and potential liabilities if not carefully navigated under the most able legal guidance. Consequently, I have turned down every request to serve as adviser.

Doing things right is always more difficult, takes longer, and cost more but better over the long-term. That is always the DNotes preference. In our case the price has been high, and at times frustrating. But surviving the test of time will pay off when the dust settled. I trust that, one day, more people will respect and appreciate the path we have chosen.

Among others, there are three funding options on our radar:

1.   ICO

Join the party. Using our new DNote 2.0, create a “token” to raise funds for a given project or all the projects. For reasons discussed and more – we are not likely to go down this route. In the United States, as in most countries, it is illegal to sell securities that are not registered or exempt.

2.   Use Regulation A+ Mini-IPO of Title IV Tier II of the JOBS Act

I believe that this is the most viable funding option for DNotes Global, Inc. Reg A+, Title IV, Tier II allows a private growth-stage company like DNotes Global, Inc. to raise up to $50 million from American and foreign investors.

Like an IPO DNotes Global can offer shares to the public; domestic and foreign, and not just accredited investors. However, we will have to submit a filing with audited statements with the SEC and be granted approval before launching a mini-IPO. The complexities, cost, time, and reporting requirements will be significantly less burdensome than a traditional IPO. With the resources, I believe that from the time we make a commitment it can be done in six months.

3.   A concurrent Reg. D & Reg S Initial Coin Offering

Reg D is a United States Federal program created under the Securities Act of 1933, and adopted in 1982. It involves a private placement memorandum designed to provide an exemption for companies to sell securities under certain rules to accredited investors without registration of the securities.

Regulation D consists of 9 Rules with 3 “Basic” exemption Rules. Reg D Rule 506(c) exempts offerings that are sold to investors who have been verified as accredited investors. Reg S exempts offerings made to non-US residents. They both allow for general solicitation and advertising essential to ICOs marketed globally. With professional guidance done correctly, Reg S ICO launched side-by-side with Reg D is a viable option, especially for our clients in the future.

I don’t mean to bore you, but this is relevant to our road-map and the book. NextGenVC is one of our strategic building blocks to involve the corporate world. We are committed to assisting entrepreneurs to improve their chances of business success. Coupled with adequate funding it is also important to take full advantage of our emerging technologies - digital currency, blockchain technologies, and decentralized global payment systems. It is all part of the ecosystems we are building to gain mass acceptance. I know that it is not always easy to see the big picture and connect all the dots.  

Meanwhile, we are looking forward to our participation at the World Funding Summit in LA this Friday and Saturday. We will be checking in  when we have a chance and deeply appreciate your support of this forum in our absence.

[HORT]

Cryptopia has DNotes listed and it is a great exchange. I like it better than Poloniex personally so getting delisted there has zero impact to me. Take advantage of this lull as once new chain comes out things will improve drastically. DNotes is in a great position, trust me on this.

[Dyna]

Cryptopia has DNotes listed and it is a great exchange. I like it better than Poloniex personally so getting delisted there has zero impact to me. Take advantage of this lull as once new chain comes out things will improve drastically. DNotes is in a great position, trust me on this.

Thank you, HORT. Your confidence in DNotes is greatly appreciated. When I have more time next week after my trip, I will gear up to support Cryptopia. I have heard good things about them.

C-Cex has listed DNotes since our early days. They have treated me well despite our low volume. I did support them fairly actively for the first couple of years. Although there is some room for improvement, to me they have been great. Zero unresponsive or bad experience.

DNotes will come back strong. Together we will overcome and succeed. 

[DNotes]

I was able to meet with a few local development firms here in Indiana yesterday. The meetings went better than expected, highly intelligent and creative people that obviously spent a great deal of time to research and understand our needs. Each group had a distinct interest in certain areas of DNotes progression, which is exactly what we need in order to grow rapidly.

[MiningHabit]

This is a small step, but a positive one towards cleaning up some of the deception in many of the ICOs:


Celebrities under SEC's radar for endorsing cryptocurrency products - https://www.techspot.com/news/71718-celebrities-under-sec-radar-endorsing-cryptocurrency-products.html

It would appear that the SEC is keeping an eye on ICO's, which is much needed at this point. Reckless negligence is rampant in our industry; it harms investors and it harms legitimate players. SEC Chief Jay Clayton has said, “I have yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security.” Which would make it necessary for these offerings to register with the SEC, prior to fundraising in the US. Another question I have is, would offerings conducted in another country, but accepting money from domestic investors, be required to register with the SEC as well?

The SEC ruling on ICO's this summer stated that anyone that sells securities (the majority of ICOs seem to fit the criteria) in the U.S., has to follow federal security laws. This would mean registration with the SEC, as well as following any other laws that securities are subject to.

I don’t like to play lawyer since I am not one. However, funding is a vital component of DNotes Global, Inc. but something I seldom discuss. You guess it – not until the time is right. But there is an obvious reason why DNotes Global, Inc. was incorporated in the State of Delaware earlier this year. (April 1, 2017) It is a strategic positioning to provide established records, including audited statements if necessary. At this point, I have provided 100% of the funding and legally control 100% of the ownership until such time when our legal team are certain of the best structure to transfer the 25% ownership to DNotes stakeholders – mostly likely to a foundation.

So here is my take on ICOs. I fear that the clear majority of ICOs are not just “tokens” but securities when come under close examination.  There are extreme risks and potential liabilities if not carefully navigated under the most able legal guidance. Consequently, I have turned down every request to serve as adviser.

Doing things right is always more difficult, takes longer, and cost more but better over the long-term. That is always the DNotes preference. In our case the price has been high, and at times frustrating. But surviving the test of time will pay off when the dust settled. I trust that, one day, more people will respect and appreciate the path we have chosen.

Among others, there are three funding options on our radar:

1.   ICO

Join the party. Using our new DNote 2.0, create a “token” to raise funds for a given project or all the projects. For reasons discussed and more – we are not likely to go down this route. In the United States, as in most countries, it is illegal to sell securities that are not registered or exempt.

2.   Use Regulation A+ Mini-IPO of Title IV Tier II of the JOBS Act

I believe that this is the most viable funding option for DNotes Global, Inc. Reg A+, Title IV, Tier II allows a private growth-stage company like DNotes Global, Inc. to raise up to $50 million from American and foreign investors.

Like an IPO DNotes Global can offer shares to the public; domestic and foreign, and not just accredited investors. However, we will have to submit a filing with audited statements with the SEC and be granted approval before launching a mini-IPO. The complexities, cost, time, and reporting requirements will be significantly less burdensome than a traditional IPO. With the resources, I believe that from the time we make a commitment it can be done in six months.

3.   A concurrent Reg. D & Reg S Initial Coin Offering

Reg D is a United States Federal program created under the Securities Act of 1933, and adopted in 1982. It involves a private placement memorandum designed to provide an exemption for companies to sell securities under certain rules to accredited investors without registration of the securities.

Regulation D consists of 9 Rules with 3 “Basic” exemption Rules. Reg D Rule 506(c) exempts offerings that are sold to investors who have been verified as accredited investors. Reg S exempts offerings made to non-US residents. They both allow for general solicitation and advertising essentially to ICOs marketed globally. With professional guidance done correctly, Reg S ICO launched side-by-side with Reg D is a viable option, especially for our clients in the future.

I don’t mean to bore you, but this is relevant to our road-map and the book. NextGenVC is one of our strategic building blocks to involve the corporate world. We are committed to assisting entrepreneurs to improve their chances of business success. Coupled with adequate funding it is also important to take full advantage of our emerging technologies - digital currency, blockchain technologies, and decentralized global payment systems. It is all part of the ecosystems we are building to gain mass acceptance. I know that it is not always easy to see the big picture and connect all the dots.  

Meanwhile, we are looking forward to our participation at the World Funding Summit in LA this Friday and Saturday. We will be checking in  when we have a chance and deeply appreciate your support of this forum in our absence.

Well said. Nice explanation. I like 2 a lot. I have always hated the accredited investing rule. No, I'm not rich. But yes, I am astute enough to understand the risks I take. So why can't I?

For example, I was desperate to invest into Facebook a year or two before it went public. It was worth $10b at the time, with shares trading on SecondMarket at about a $15b valuation. Pretty steep markup to get in. But I wanted in bad. Only, I'm not accredited. My Dad is, and so I wrote up a 4 page investment thesis. He didn't do so. And obviously there was nothing I could do with the little capital I had at the time. Facebook is like 30x-40x those market cap levels now. And I missed only because I'm not already rich.

This is a huge reason I love crypto so much. It's going to disrupt so much of our world, just like social platforms and cell phones did before it. But this time, nobody except for myself gets to determine what I do. I set my own risk params, and the government can't tell me what to do because I'm not already rich.

Glad to see this ethic possibly extending out to the underlying corporate entities, and not just to tokens themselves.

[DNotes]

This is a small step, but a positive one towards cleaning up some of the deception in many of the ICOs:


Celebrities under SEC's radar for endorsing cryptocurrency products - https://www.techspot.com/news/71718-celebrities-under-sec-radar-endorsing-cryptocurrency-products.html

It would appear that the SEC is keeping an eye on ICO's, which is much needed at this point. Reckless negligence is rampant in our industry; it harms investors and it harms legitimate players. SEC Chief Jay Clayton has said, “I have yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security.” Which would make it necessary for these offerings to register with the SEC, prior to fundraising in the US. Another question I have is, would offerings conducted in another country, but accepting money from domestic investors, be required to register with the SEC as well?

The SEC ruling on ICO's this summer stated that anyone that sells securities (the majority of ICOs seem to fit the criteria) in the U.S., has to follow federal security laws. This would mean registration with the SEC, as well as following any other laws that securities are subject to.

I don’t like to play lawyer since I am not one. However, funding is a vital component of DNotes Global, Inc. but something I seldom discuss. You guess it – not until the time is right. But there is an obvious reason why DNotes Global, Inc. was incorporated in the State of Delaware earlier this year. (April 1, 2017) It is a strategic positioning to provide established records, including audited statements if necessary. At this point, I have provided 100% of the funding and legally control 100% of the ownership until such time when our legal team are certain of the best structure to transfer the 25% ownership to DNotes stakeholders – mostly likely to a foundation.

So here is my take on ICOs. I fear that the clear majority of ICOs are not just “tokens” but securities when come under close examination.  There are extreme risks and potential liabilities if not carefully navigated under the most able legal guidance. Consequently, I have turned down every request to serve as adviser.

Doing things right is always more difficult, takes longer, and cost more but better over the long-term. That is always the DNotes preference. In our case the price has been high, and at times frustrating. But surviving the test of time will pay off when the dust settled. I trust that, one day, more people will respect and appreciate the path we have chosen.

Among others, there are three funding options on our radar:

1.   ICO

Join the party. Using our new DNote 2.0, create a “token” to raise funds for a given project or all the projects. For reasons discussed and more – we are not likely to go down this route. In the United States, as in most countries, it is illegal to sell securities that are not registered or exempt.

2.   Use Regulation A+ Mini-IPO of Title IV Tier II of the JOBS Act

I believe that this is the most viable funding option for DNotes Global, Inc. Reg A+, Title IV, Tier II allows a private growth-stage company like DNotes Global, Inc. to raise up to $50 million from American and foreign investors.

Like an IPO DNotes Global can offer shares to the public; domestic and foreign, and not just accredited investors. However, we will have to submit a filing with audited statements with the SEC and be granted approval before launching a mini-IPO. The complexities, cost, time, and reporting requirements will be significantly less burdensome than a traditional IPO. With the resources, I believe that from the time we make a commitment it can be done in six months.

3.   A concurrent Reg. D & Reg S Initial Coin Offering

Reg D is a United States Federal program created under the Securities Act of 1933, and adopted in 1982. It involves a private placement memorandum designed to provide an exemption for companies to sell securities under certain rules to accredited investors without registration of the securities.

Regulation D consists of 9 Rules with 3 “Basic” exemption Rules. Reg D Rule 506(c) exempts offerings that are sold to investors who have been verified as accredited investors. Reg S exempts offerings made to non-US residents. They both allow for general solicitation and advertising essentially to ICOs marketed globally. With professional guidance done correctly, Reg S ICO launched side-by-side with Reg D is a viable option, especially for our clients in the future.

I don’t mean to bore you, but this is relevant to our road-map and the book. NextGenVC is one of our strategic building blocks to involve the corporate world. We are committed to assisting entrepreneurs to improve their chances of business success. Coupled with adequate funding it is also important to take full advantage of our emerging technologies - digital currency, blockchain technologies, and decentralized global payment systems. It is all part of the ecosystems we are building to gain mass acceptance. I know that it is not always easy to see the big picture and connect all the dots.  

Meanwhile, we are looking forward to our participation at the World Funding Summit in LA this Friday and Saturday. We will be checking in  when we have a chance and deeply appreciate your support of this forum in our absence.

Well said. Nice explanation. I like 2 a lot. I have always hated the accredited investing rule. No, I'm not rich. But yes, I am astute enough to understand the risks I take. So why can't I?

For example, I was desperate to invest into Facebook a year or two before it went public. It was worth $10b at the time, with shares trading on SecondMarket at about a $15b valuation. Pretty steep markup to get in. But I wanted in bad. Only, I'm not accredited. My Dad is, and so I wrote up a 4 page investment thesis. He didn't do so. And obviously there was nothing I could do with the little capital I had at the time. Facebook is like 30x-40x those market cap levels now. And I missed only because I'm not already rich.

This is a huge reason I love crypto so much. It's going to disrupt so much of our world, just like social platforms and cell phones did before it. But this time, nobody except for myself gets to determine what I do. I set my own risk params, and the government can't tell me what to do because I'm not already rich.

Glad to see this ethic possibly extending out to the underlying corporate entities, and not just to tokens themselves.

Certainly understand the frustration in that situation MiningHabit and it is unfortunate that you were unable to invest. You could have gone to the casino, or bought lottery tickets with whatever money you had planned to invest and that would have been perfectly legal. I don't believe the amount of money you make should dictate your ability to invest.

[DNotes]

All these situations are showing that Bitcoin is going to well-liked very speadly owever I think popularity of Bitcoin in porno industries will give bad effect for the future of Bitcoin . Because I believe the participation of Bitcoin in porn like things will make Bitcoin as bad issues , So it might be feasible some countries may ban Bitcoin in their own individual nation .So we ought to use Bitcoin only for legit income and excellent work .Since this is our responsibility as an Bitcoiner to make Bitcoin like a reliable , obvious and from poor things .H

Welcome to the DNotes thread JuIiusSeizure. I would hope as well that countries would not ban bitcoin or cryptocurrency based on bad actors or it's potential use in the nefarious, as I'm sure regardless of the medium used there will always be bad actors. Ultimately, cryptocurrency leaves a trail that could be followed.

[Brandon Cheliak]

All these situations are showing that Bitcoin is going to well-liked very speadly owever I think popularity of Bitcoin in porno industries will give bad effect for the future of Bitcoin . Because I believe the participation of Bitcoin in porn like things will make Bitcoin as bad issues , So it might be feasible some countries may ban Bitcoin in their own individual nation .So we ought to use Bitcoin only for legit income and excellent work .Since this is our responsibility as an Bitcoiner to make Bitcoin like a reliable , obvious and from poor things .H

Welcome to the DNotes thread JuIiusSeizure. I would hope as well that countries would not ban bitcoin or cryptocurrency based on bad actors or it's potential use in the nefarious, as I'm sure regardless of the medium used there will always be bad actors. Ultimately, cryptocurrency leaves a trail that could be followed.

I agree that there will always be bad actors wherever there are large sums of wealth to be taken, no matter what precautionary measures are in place. It's a never ending struggle of evolution and innovation that could probably be traced back to the dawn of time. However I do think JuliusSeizure has a very good point, in that an "unwritten code of ethics" will help foster a culture of mutual respect.

[DNotes]

All these situations are showing that Bitcoin is going to well-liked very speadly owever I think popularity of Bitcoin in porno industries will give bad effect for the future of Bitcoin . Because I believe the participation of Bitcoin in porn like things will make Bitcoin as bad issues , So it might be feasible some countries may ban Bitcoin in their own individual nation .So we ought to use Bitcoin only for legit income and excellent work .Since this is our responsibility as an Bitcoiner to make Bitcoin like a reliable , obvious and from poor things .H

Something tells me you might be in the wrong forum.  None the less, trying to decipher your message, I would say 99.99% of people aren't in the porn industry, nor care.  In general, I suppose you could wrap this in with drugs, laundering, ransoms etc that the banksters would like people to believe is the only reason for bitcoin.  With better information now available, in part to DCE Brief, that notion is close to being gone.  

To me, "porno" is not this industries problem, it's all the scam coins/scam "clubs" coming online.  I love this technology, and am always researching new ideas, platforms, etc., but these get rich quick schemes/forks/ICO's are getting out of control.  I have a feeling, sometime soon, this could be the catalyst that actually gets governments involved...unfortunately.

For these reasons and more, is why I believe in the Dnotes team and ecosystem.  The activity from the team in this forum alone, is better than any other project I've seen.  Integrity, professionalism, and a legit business model, will win out in the end.  Probably sooner than later, as more investment grade money enters this arena.  I know last week was rough, but now more than ever, I believe Dnotes is on the right track.  Thanks to the whole team who took time to answer some questions, and to share a little more detail about the funding aspect today.

Thanks Dan. We have always advocated fair and reasonable rules and regulations in order to help this industry grow without being overly restrictive and burdensome. Thanks for the comments and confidence!

[Brandon Cheliak]

This is a small step, but a positive one towards cleaning up some of the deception in many of the ICOs:


Celebrities under SEC's radar for endorsing cryptocurrency products - https://www.techspot.com/news/71718-celebrities-under-sec-radar-endorsing-cryptocurrency-products.html

It would appear that the SEC is keeping an eye on ICO's, which is much needed at this point. Reckless negligence is rampant in our industry; it harms investors and it harms legitimate players. SEC Chief Jay Clayton has said, “I have yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security.” Which would make it necessary for these offerings to register with the SEC, prior to fundraising in the US. Another question I have is, would offerings conducted in another country, but accepting money from domestic investors, be required to register with the SEC as well?

The SEC ruling on ICO's this summer stated that anyone that sells securities (the majority of ICOs seem to fit the criteria) in the U.S., has to follow federal security laws. This would mean registration with the SEC, as well as following any other laws that securities are subject to.

I don’t like to play lawyer since I am not one. However, funding is a vital component of DNotes Global, Inc. but something I seldom discuss. You guess it – not until the time is right. But there is an obvious reason why DNotes Global, Inc. was incorporated in the State of Delaware earlier this year. (April 1, 2017) It is a strategic positioning to provide established records, including audited statements if necessary. At this point, I have provided 100% of the funding and legally control 100% of the ownership until such time when our legal team are certain of the best structure to transfer the 25% ownership to DNotes stakeholders – mostly likely to a foundation.

So here is my take on ICOs. I fear that the clear majority of ICOs are not just “tokens” but securities when come under close examination.  There are extreme risks and potential liabilities if not carefully navigated under the most able legal guidance. Consequently, I have turned down every request to serve as adviser.

Doing things right is always more difficult, takes longer, and cost more but better over the long-term. That is always the DNotes preference. In our case the price has been high, and at times frustrating. But surviving the test of time will pay off when the dust settled. I trust that, one day, more people will respect and appreciate the path we have chosen.

Among others, there are three funding options on our radar:

1.   ICO

Join the party. Using our new DNote 2.0, create a “token” to raise funds for a given project or all the projects. For reasons discussed and more – we are not likely to go down this route. In the United States, as in most countries, it is illegal to sell securities that are not registered or exempt.

2.   Use Regulation A+ Mini-IPO of Title IV Tier II of the JOBS Act

I believe that this is the most viable funding option for DNotes Global, Inc. Reg A+, Title IV, Tier II allows a private growth-stage company like DNotes Global, Inc. to raise up to $50 million from American and foreign investors.

Like an IPO DNotes Global can offer shares to the public; domestic and foreign, and not just accredited investors. However, we will have to submit a filing with audited statements with the SEC and be granted approval before launching a mini-IPO. The complexities, cost, time, and reporting requirements will be significantly less burdensome than a traditional IPO. With the resources, I believe that from the time we make a commitment it can be done in six months.

3.   A concurrent Reg. D & Reg S Initial Coin Offering

Reg D is a United States Federal program created under the Securities Act of 1933, and adopted in 1982. It involves a private placement memorandum designed to provide an exemption for companies to sell securities under certain rules to accredited investors without registration of the securities.

Regulation D consists of 9 Rules with 3 “Basic” exemption Rules. Reg D Rule 506(c) exempts offerings that are sold to investors who have been verified as accredited investors. Reg S exempts offerings made to non-US residents. They both allow for general solicitation and advertising essentially to ICOs marketed globally. With professional guidance done correctly, Reg S ICO launched side-by-side with Reg D is a viable option, especially for our clients in the future.

I don’t mean to bore you, but this is relevant to our road-map and the book. NextGenVC is one of our strategic building blocks to involve the corporate world. We are committed to assisting entrepreneurs to improve their chances of business success. Coupled with adequate funding it is also important to take full advantage of our emerging technologies - digital currency, blockchain technologies, and decentralized global payment systems. It is all part of the ecosystems we are building to gain mass acceptance. I know that it is not always easy to see the big picture and connect all the dots.  

Meanwhile, we are looking forward to our participation at the World Funding Summit in LA this Friday and Saturday. We will be checking in  when we have a chance and deeply appreciate your support of this forum in our absence.

Well said. Nice explanation. I like 2 a lot. I have always hated the accredited investing rule. No, I'm not rich. But yes, I am astute enough to understand the risks I take. So why can't I?

For example, I was desperate to invest into Facebook a year or two before it went public. It was worth $10b at the time, with shares trading on SecondMarket at about a $15b valuation. Pretty steep markup to get in. But I wanted in bad. Only, I'm not accredited. My Dad is, and so I wrote up a 4 page investment thesis. He didn't do so. And obviously there was nothing I could do with the little capital I had at the time. Facebook is like 30x-40x those market cap levels now. And I missed only because I'm not already rich.

This is a huge reason I love crypto so much. It's going to disrupt so much of our world, just like social platforms and cell phones did before it. But this time, nobody except for myself gets to determine what I do. I set my own risk params, and the government can't tell me what to do because I'm not already rich.

Glad to see this ethic possibly extending out to the underlying corporate entities, and not just to tokens themselves.

You're damn right that's a big reason why cryptocurrency is great, never before has the ordinary person had freedom of association in a monetary sense. The "cookie cutter" style system is often unfair when someone doesn't fit the mold, and they are encapsulated in blanket policy designed for people who (may or may not) need warning labels on crayons.