George Clooney’s foundation is planning to open seven public schools for Syrian refugee children.
Month: July 2017
Op Ed: Launching an ICO? Follow This Advice from the SEC
Lost in the headlines over the SEC’s recent pronouncements on cryptocurrency was important practical advice for both promoters of and participants in initial coin offerings (ICOs).
Most coverage was rightfully garnered from the Report by the SEC’s enforcement division which deemed that DAO Tokens are securities, after subjecting the offering to the Howey test. However, the simultaneously issued Investor Bulletin should also be closely read by issuers of ICOs and their counsel.
Advice for Issuers and Counsel
Even though the bulletin was prepared as a cautionary statement to investors, it contains at least one disclaimer (in boldface type) that attorneys advising ICOs should add the following language to any offering document or white paper:
Investing in an ICO may limit your recovery in the event of fraud or theft. While you may have rights under the federal securities laws, your ability to recover may be significantly limited.
We have previously discussed the importance of these disclaimers and risk factors. By discussing the vulnerabilities of cryptocurrency exchanges and the potential difficulties associated with any recovery of invested or stolen funds, the SEC signals at least some of the risk factors counsel should consider adding to ICO offering materials.
In fact, prudent attorneys advising their ICO clients would be wise to employ the cut-and-paste function, adding the above caveat to all their documents.
This additional wording is significant in that it spells out three key characteristics of ICOs:
(i) the difficulty of tracing or securing virtual currency;
(ii) the international scope of ICOs; and
(iii) the fact that lack of any central authority may limit an investor’s remedies against an issuer.
Practical Advice for Investors
Besides the usual bromides about being wary of any offer that sounds “too good to be true,” the SEC demonstrated an appreciation for the unique due diligence required in carefully evaluating an ICO.
According to the bulletin, investors should “ask whether the blockchain is open and public, whether the code has been published, and whether there has been an independent cybersecurity audit.” The SEC is communicating that those factors are indicative of companies whose products are verifiably real and secure.
Given the importance the SEC placed on these three items, rather than await questions, such points should be clearly addressed by an issuer in its ICO materials distributed to potential investors. Issuers of ICOs should include those factors and other “good facts” that can help to demonstrate their product’s value, security and legitimacy.
While the recent flurry of documents emanating from the SEC likely has given issuers of ICOs and their counsel pause (and caused them to walk each token through the Howey test), it does not appear to have stifled these transactions.
However, where the report reiterates the conceptual framework under which any potential token offering be evaluated to determine whether it constitutes a securities offering, the bulletin provides practical advice, and investors should expect to see some of the SEC’s language repeated in ICO offering documents going forward.
The post Op Ed: Launching an ICO? Follow This Advice from the SEC appeared first on Bitcoin Magazine.
Celebrities Gloat over Scaramucci Firing: ‘Accomplished a Lot’ in ‘First 100 Seconds’
Hollywood celebrities and personalities took to social media Monday to gloat and and crack jokes after news broke that President Donald Trump had removed new White House communications director Anthony Scaramucci from his position after just ten days.
Joy Reid: Dems Need to Stop Pining for White Trump Voters, Cater to Minorities
Sunday from Politicon in Pasadena, CA, MSNBC host Joy Reid was interviewed by the “Pod Save America” podcast and argued the Democratic Party should not try to win over white working class Donald Trump voters. Reid said, “Democrats have all these things they want to do at the same time. They pine for the Trump voter who they think they can somehow talk into not voting for Donald Trump. You know ‘What did we do to you? How did we hurt you? If we can find some way to appease you will you come back to us please.’ You know I’m wearing a little LBJ pin. It has been really since the Lyndon Johnson era which was the last time the Democrats won white voters— a majority of the white voters. And they pine for those voters. So they have that problem. And then they want to figure out well how do we keep the active progressive voter that is really excited and really interested and really wants to be a part of politics? And you can’t really do both and also message to the base of the party which is largely people of color.” She continued, “I do know if
Mysterious Object Found in Canada Is CIA Spy Camera from 1950s
A 55-year-old mystery has been solved, thanks to several tipsters who called into a Canadian television station reporting Tuesday on a mysterious object found in the woods.
Buchanan on Scaramucci Dismissal: Kelly First Step Dramatic, Impressive, Correct — ‘Brings a Touch of Parris Island to the West Wing’
Monday on CNBC’s “Power Lunch” on the heels of the announcement of the removal of Anthony Scaramucci as White House communications director, former Reagan White House communications director Pat Buchanan praised the move, which reportedly happened at the request of new White House chief of staff John Kelly. Buchanan called it “dramatic and impressive and correct.” “What happened was the general came in, Gen. Kelly, and he basically was repulsed by what Scaramucci said and how he said it and what he said about his colleagues,” Buchanan said. “This is not the kind of operation or individual that the general wants in his operation. And he exercised immediate and swift and decisive command and got rid of an individual. And it sends a message, I think, out to the country that you have a man in charge who is the chief of staff, who does decide on people who are even those close to the president of the United States. I think it’s an extremely healthy sign of the potential of the general. The general’s job is obviously going to be a very, very tough one, bringing that staff under control and frankly moving to bring order, discipline and a chain of
Bloq Outlines Blockchain Solutions for Trade Finance and Supply Chain Management
Bloq, a Chicago-based blockchain developer and software startup, has joined IBM and Microsoft to develop blockchain platforms and best practices for one of the most promising use cases for blockchain technology: trade finance and supply chain management.
Interest in the use of blockchain for trade is growing rapidly as companies and organizations like IBM, Microsoft, Hyperledger, JP Morgan and Walmart recognize that antiquated trade systems are long overdue for a complete restructuring and that blockchain technology has the potential to revolutionize the systems that make up global trade.
A common problem with current trade systems is fraud. The trip from farm or factory to store shelves involves numerous opportunities to falsify shipping documents and alter shipping container records or contents with little accountability.
“Global supply chain management has drastically changed in the last 10-15 years,” William Nieusma, Vice President, Government Strategy at Bloq told Bitcoin Magazine: “Regulatory mandates, operational complexity and data security concerns have ramped up the pressure to overhaul these outdated systems.”
Nieusma is one of the authors of Bloq’s recently released white paper, “Accelerating Global Trade Processes with Blockchain,” designed to introduce their new project to develop a model blockchain network for companies involved in trade.
“But it’s not all doom-and-gloom; adopters of blockchain-based systems can cut costs, improve customer service and find new, verified business partners,” added Nieusma.
Alan Cohn, attorney and consultant and advisor to Bloq told us:
“Global trade is an area where blockchain can play a transformative role, not just for industry but also for government.”
Nieusma noted that Bloq believes that in the future, the most significant and valuable business systems, including trade, will run on blockchains.
IBM has recognized the potential of blockchain and trade. In partnership with seven European banks, it is building a pilot blockchain trade program with Hyperledger to enable companies like Walmart and Maersk to use blockchain technology to better track the movement of farm and factory products to the store shelves.
Microsoft is also building a model trade program using the Ethereum blockchain in a pilot project with JPMorgan.
Blockchain Tech and Trade Are a Perfect Fit
Trade finance and supply management lend themselves well to the particular advantages of blockchain technology. The Bloq white paper states:
Blockchain technology holds considerable promise to substantially improve supply chain security and transparency. Blockchain’s inherent architectural attributes solve several weaknesses in current trade IT systems and processes to ensure information immutability and transaction auditing, thereby increasing trade value capture and value creation.
Bloq’s model trade platform promises companies high levels of cybersecurity, reduced waiting times, transparency, ease of revenue payments, low infrastructure investment, easily auditable transactions, efficient accommodation for additional participants, immutability and automatic bonding and payments through smart contracts.
Bloq plans to build a “permissioned, federated network” built on the Bitcoin blockchain that, depending on the client’s needs, will also support Ethereum and Hyperledger. Nieusma said:
“Bloq believes that the future is a multi-chain, multi-network world and that interoperability is a guiding principle in network buildout.”
The Bloq program will connect all parties involved in a trade including buyers, banks, sellers and transporters so that information about a shipment is distributed among all involved parties at the same time.
As the white paper states:
“Trade can be safer, more secure, and more profitable with less human error. We hope this discussion leads to an evolution in trade that benefits all stakeholders.”
The post Bloq Outlines Blockchain Solutions for Trade Finance and Supply Chain Management appeared first on Bitcoin Magazine.
Report: HBO Hit by Cyber Attack, ‘Game of Thrones’ Script Leaked
Television network HBO was hit by another cyber attack over the weekend, leading to leaks of television shows such as ‘Ballers’ and ‘Room 104’ and a script from the hit show ‘Game of Thrones,’ according to a report.
Reports: Trump Pulls Anthony Scaramucci from WH Comms Director Role After 10 Days
White House communications director Anthony Scaramucci has been fired after just a week into the job, according to reports.