Since this is a US compliant ICO, I can safely assume your tokens will be utility based right?
It looks like you are confusing two concepts - utility token and a security token. Utility token has some, well, utility. It is something that you should be able to use on the platform once it is built. By definition, it can not be an investment and cannot promise future profits, any resale value, or increase in price. It can only promise you that you will be able to use it once/if the platform for that token is ready.
The problem is that so many ICO's loosely use the term "utility token" for their tokens and advertise them as an actual investment, which is untrue and illegal.
A security token is an investment vehicle. It comes with an additional burden for the company - there are lots of restrictions how you can advertise, market and issue security tokens. You also need to ID verify and do full KYC on all your investors. The pros of this approach is that you can actually distribute profits, and do other things that are expected from an investment. Also, investors are legally protected - so no "over and outs", or pump and dump are possible with regulated security tokens.
Our RAD Token is a security token. We have done a lot to make it right from the beginning, and hope that investors will appreciate the added protection of a legal token.
That must have taken a considerable amount of early capital to secure an adequate legal team to guide you guys through this. May I ask which firm you have on retainer?
It has indeed been a long journey, in the past six months we have consulted with several lawyers and groups before settling with our current team. We have plans on announcing our legal partners down the road, for now, we are proud to present
CrowdCheck and CrowdCheckLaw as our partners for the KYC process.
This is reassuring. Glad you guys are doing everything the right way. What made you decide not to take the cheap and easy way out like every one else seems to?
Thank you! The way we see it is, there is no other sustainable approach than the right way, as you called it. We have seen several crypto fintech startups go belly up because of scams and lack of credibility, and most of these could have been predicted early on. In the financial world, credibility and compliance is everything, especially if you are planning on building a company for the ages, with products that are available for citizens of the U.S. and all other countries, and not just under special tax-haven conditions. For example, the SEC is there for a reason, to protect investors, all investors, traditional or otherwise. However, at the same time we believe in blockchain, in crypto, and compliance. But we don't see these two things as mutually exclusive, instead, we see them as actors that mutually enrich the possibilities out there.
Simply put, if you want to play the big league, we feel that doing the right way, is the only way.