Why would you recommend regulated JOBS Act crowdfunding over Securitized Token Offers (STOs)?

Samson Williams
March 23,
Samson Williams  replied:

The real question is: 

What makes you think that Securitized Token Offerings (STOs) aren't regulated crowdfunding? 

Crowdfunding consist of 3 elements: 

1. A human looking for money

2. Goes on the internet and ask strangers for money 

3. In exchange for their good, product, service or use/equity/obligation for using their good, product or service. 

If you do "unregulated" crowdfunding, good luck. Thats called an "ICO". Where as an "STO" doesn't actually exist and is just a fancy marketing term for debt/equity crowdfunding. How do STOs not exist? There is no such thing as a "token offering". It was a term made up by a lawyer or a marketer to attempt to add sexiness or gray area to existing JOBS Act regulations. Its like saying "I'm going to securitize a gummy bear offering." What is a "gummy bear offering"? Its the same thing as a token offering. Its a made up financial instrument that ultimately is crowdfunding. Whether its donation, debt, equity or royalty when you use the internet to solicit support, from strangers, thats crowdfunding. 

 

Here are 2 videos that provide additional context. 

 

https://youtu.be/oGAXW8GPcj0 

https://youtu.be/lbphClg6bPI 

 

Love the question and keep them coming! 

Samson Williams
March 23,
Samson Williams  replied:

The real question is: 

What makes you think that Securitized Token Offerings (STOs) aren't regulated crowdfunding? 

Crowdfunding consist of 3 elements: 

1. A human looking for money

2. Goes on the internet and ask strangers for money 

3. In exchange for their good, product, service or use/equity/obligation for using their good, product or service. 

If you do "unregulated" crowdfunding, good luck. Thats called an "ICO". Where as an "STO" doesn't actually exist and is just a fancy marketing term for debt/equity crowdfunding. How do STOs not exist? There is no such thing as a "token offering". It was a term made up by a lawyer or a marketer to attempt to add sexiness or gray area to existing JOBS Act regulations. Its like saying "I'm going to securitize a gummy bear offering." What is a "gummy bear offering"? Its the same thing as a token offering. Its a made up financial instrument that ultimately is crowdfunding. Whether its donation, debt, equity or royalty when you use the internet to solicit support, from strangers, thats crowdfunding. 

 

Here are 2 videos that provide additional context. 

 

https://youtu.be/oGAXW8GPcj0 

https://youtu.be/lbphClg6bPI 

 

Love the question and keep them coming!