In an ever-increasing world of opportunities, the list of scamsters increase too. This makes life a little trickier for true product-based companies to present fact based opportunities. Lest us not try nevertheless.
Not having finalised our ICO yet, crypto and ICO's does provide for business growth where traditional capital-raising entities such as stock exchanges requires projects not less than R500,000,000 to R1b ($45m - $100m) before enabling listing.
Quite a few profitable business opportunities exist below this threshold. Also keeping in mind that micro-enterprises are the main economy drivers and by far the biggest employer.
In this regard cryptocurrency and ICO's opens up the illiquidity of traditional bankers and stock exchanges through double income generators being both investment in the project itself and through crypto trading.
In my opinion an alarming many coins are traded without a second leg, being security in tangible assets, in whatever form. In this regard we wish to join the ranks of other "asset backed " projects, ICO's and business' offering greater peace of mind with such backing.
Scamsters are common criminals lurking everywhere, yet among the darkness in which they prey, we on the other hand wish to be also ray of light, giving hope and financial reprieve for as genuine investors. This can be achieved in the crypto environment.
Not having finalised our ICO yet, crypto and ICO's does provide for business growth where traditional capital-raising entities such as stock exchanges requires projects not less than R500,000,000 to R1b ($45m - $100m) before enabling listing.
Quite a few profitable business opportunities exist below this threshold. Also keeping in mind that micro-enterprises are the main economy drivers and by far the biggest employer.
In this regard cryptocurrency and ICO's opens up the illiquidity of traditional bankers and stock exchanges through double income generators being both investment in the project itself and through crypto trading.
In my opinion an alarming many coins are traded without a second leg, being security in tangible assets, in whatever form. In this regard we wish to join the ranks of other "asset backed " projects, ICO's and business' offering greater peace of mind with such backing.
Scamsters are common criminals lurking everywhere, yet among the darkness in which they prey, we on the other hand wish to be also ray of light, giving hope and financial reprieve for as genuine investors. This can be achieved in the crypto environment.
The thing about ICO/ITO's that is a major factor here in the United States is securities law. It's an issue that needs to be addressed through regulatory changes, because right now the SEC seems to pick and choose which ICO's are legal and which are violating the law. They are applying standards, but the main test used, SEC vs. Howey Co., is itself not always clear in the ICO/ITO paradigm.
Asset backed ICO's can also potentially involve regulation by the CFTC depending on the nature of the asset backing the coin/token.
The organization I am working with right now, Blockchain Technology Research Innovations Corporation, considered forming as a for-profit business incubator. Instead, we decided to form as a non-profit 501(c)(3). Not only does that potentially make a wider pool of funds available (such as government grants into DLT, etc.), but also we can form for-profit businesses as each of the projects we incubate becomes ready for market. They can raise funds as an ICO or in whatever way makes sense for that project (of course, subject to the laws that apply to the jurisdiction of the business). We offer our donors a token that will reward all holders with some value from each project that completes the incubation program. (THOUGH I STRESS it is not an investment. The rewards that are given to donor supporters of projects will be made by those projects and not by the non-profit directly.)
We believe this is a good model for emerging technology businesses to follow in the United States (at this time), because the nature of R&D on emerging technology is a tax-exempt scientific research activity. Plus people that participate in our IDO get a full tax deduction, which especially if contributing cryptocurrency, can significantly reduce their capital gains taxes. For example, if done correctly, a person that bought 1 BTC for $1000 USD, and then contributes that to charity AS BTC can deduct the full fair market value of the contribution as of the time/date they made the contribution.
In addition, projects that have already formed as businesses but that contribute funds to performing research for their projects by a 501(c)(3) can claim the R&D tax credit for the full value of the contribution to the non-profit. This can allow you to cover costs that ordinarily would not be eligible to be included in the scope of the R&D tax credit, such as certain overhead costs.
Over the long-term, we hope that complicated structures like this are not needed for most businesses in the field and that regulatory clarity will enable innovation in the US jurisdiction. The founders of BTRIC have experience in federal government advocacy and will be working to shape the regulations, so our industry is not "shaped by the regulations".
Best regards,
Ben
(DISCLAIMER: I am an MBA, not a CPA or lawyer, and this doesn't constitute legal or tax advice but is for informational purposes only. Consult with your own lawyer and tax professional for information specific to your circumstance.)