According to this source, equity crowdfunding is when investors who fund a company that is not traded on the stock market receive shares of stock in exchange for their contribution. If the company does well then those who crowdfunded it will receive benefits because they backed the business.
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Proof of stake (PoS) and proof of work (PoW) are two types of consensus mechanisms that cryptocurrencies use to verify that blockchain transactions are legitimate. This is what enables cryptocurrency transactions to be both decentralized and secure. While the majority of early cryptocurrencies used a proof-of-work architecture, many newer cryptocurrencies have opted for the more energy-efficient, proof-of-stake architecture. And Ethereum, the second largest cryptocurrency, recently made the switch from PoW to PoS.
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The Jumpstart Our Business Startup Act (JOBS Act) was signed into law by then President Barack Obama in the spring of 2012. The JOBS Act, in practice, is the twenty-first century response to the Securities Act of 1933, passed shortly after the Great Depression. The Securities Act banned the ability for companies to generally solicit the public for investment capital unless the securities were registered. With the advent of the information age, the internet boom, and the digital era, it became clear how antiquated the Securities Act laws had become.
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The Securities and Exchange Commission (SEC) recently announced charges against Gemini Trust Company, LLC—a cryptocurrency exchange—and Genesis Global Capital, LLC—a cryptocurrency lender—for selling unregistered securities. Many companies, particularly in the crypto industry, which is still widely unregulated, think that the SEC regulations that cover private equity markets are avoidable. As these companies and many others have learned, this isn’t the case.
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Whether you are conducting a crowdfunding to investors under Reg CF, generally soliciting accredited investors for an initial coin offering (ICO) or other capital raise using Rule 506(c), or targeting the general public with a Reg A+ offering, endorsements can be extremely valuable tools if you are trying to crowdfund a new product or a capital raise. Getting them can be a challenge - and a tempting option is to pay an endorser some kind of compensation, or offer a donation to their favorite charity.
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Sam Bankman-Fried, the founder of Alameda Research and FTX, is no stranger to making headlines. Recently, Bankman-Fried has been in the news for his legal battle with the United States Securities and Exchange Commission (SEC). On January 3rd, he pleaded not guilty to federal charges of fraud and money laundering and faces a trial set for October. If convicted, he could face up to 115 years in prison.
But he’s not the only one on the hook. There are several other players from FTX and Alameda who are involved in the case and face their own criminal charges levied by the federal government, the SEC, and the Commodity Futures Trading Commission (CFTC).
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Reg CF, or Title III of the JOBS Act, just went into effect May 16, 2016. It allows companies to ask for the $1 million within the span of a year, but it does come with a whole suite of obligations and restrictions. For most companies, Reg CF won’t be practical unless changes to the law improve Reg CF. However, for some companies, like Legion M, Reg CF might just be that perfect way to raise much needed capital. Particularly enticing is that Reg CF allows companies to raise money from all types of investors, including non-accredited investors.
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In December 2022, the Consumer Financial Protection Bureau (CFPB) charged Wells Fargo with $3.7 billion USD in redress and penalty fees for illegal conduct that affected 16 million customers. It's one of the largest penalties imposed on any U.S. bank, and it's a big deal for investors and consumers alike.
So what exactly happened with Wells Fargo? Let’s take a closer look at why Wells Fargo was fined and what it means for its customers and investors.
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The Senate Appropriations Committee introduced the FY2023 omnibus appropriations bill in December that will keep the government funded through September 2023. On December 29, 2022, President Biden signed it into law.
This law outlines key government initiatives and how much funding they will receive, which will impact various industries and communities across the nation not only this year but in years to come. Understanding all that the omnibus bill includes can open up potential opportunities for investors. For investors with an accredited investor certificate, private offerings are available. In recent years crowdfunding trends have become more and more popular, and many private companies rely on accredited investors to fund their businesses. This not only opens up new opportunities for investors but also opens up insane growth potential for companies.
Let’s take a closer look at what the omnibus bill contains and what it means for investors.
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In recent years, celebrity involvement in the crypto space has been on the rise. From tech moguls to Hollywood stars, some of the most influential figures have taken a vested interest in digital currencies such as Bitcoin and Ethereum.
While there are people who have earned celebrity status because of crypto, that’s not who we are covering here. Rather, these are people who have used their mainstream fame to launch, support, or propel cryptocurrencies and blockchain technology.
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