Happy Friday and welcome to another edition of Divi Project’s weekly update! I hope everyone had an enjoyable week and is excited to start their weekend (Game of Thrones this Sunday!). Before you do, let’s recap what went down in Divi Land this week.
I spent most of this week attending two conferences, Security Token Summit, and Crypto Invest Summit. Each had a very different vibe but equally engaging content.
Security Token Summit
As you can imagine, the Security Token Summit was heavily focused on Security Token Offerings, called STOs. The STO is a new framework for delivering tokens to investors that differs from ICOs (Initial Coin Offerings) in that the assets offered are “securitized” or backed by some real asset, whether physical or digital. The Jobs Act makes STOs possible, and most of these offerings are filing under the Regulation A+ exemption to comply with U.S. securities laws and sell cryptocurrency to Accredited Investors.
All of this sounds great, except the fact that as of today, not one Reg A+ filing has met approval by the Securities and Exchange Commission (SEC). That’s not to say that these filings won’t eventually be approved, but as of today, this is the environment in which we’re working. I feel that even Reg A+ is not a one size fits all framework for a token offering, but it is indeed a step in the right direction.
Additionally, I feel that more thought needs to go into the regulation around who can invest in STOs. As of right now, only Accredited Investors (those with $1M in liquid assets) have the opportunity to engage with these token sales. This gatekeeping is meant to keep “unsophisticated investors” from having access to opportunities whereby they may lose more money than they can afford to. As insulting as that is from a personal standpoint, it’s also flawed logic. Many “unsophisticated” individuals have more than $1M in the bank by sheer circumstance. Thankfully though, there are regulators in the U.S. government pushing to change this antiquated and inefficient law.
One thing is for sure, Security Tokens will be a massive industry in the coming 3-5 years, and the market is seemingly endless for this opportunity.
Crypto Invest Summit
Where STS was teeming with lawyers, exchange operators, and people in suits, Crypto Invest Summit seemed to invite a more laid back and diverse array of individuals. Lots of crypto “influencers” and thought leaders were present alongside a multitude of purely interested cryptocurrency enthusiasts. Over 4,000 folks were in attendance over the 2-day event, and the networking and relationship building opportunities were excellent.
I don’t have as much to say about the content of CIS because frankly, I spent more time in the exhibitors’ hall talking to people than watching panel discussions and keynotes. That said, the material I did catch was quite interesting, namely the final panel on which Brock Pierce sat and discussed everything from Security Tokens to Cambridge Associates recommendation that private equity funds take a very close look at crypto and blockchain projects and begin allocating up to 30% of their finances to said businesses.
Media mentions this week
Divi appeared several times in the media this week. Let’s take a look.
A presentation I delivered in South Africa at the Blockchain Africa Conference was quoted on CoinTelegraph.