StartEngine plans to accept Bitcoin & Ethereum in the offer of security tokens | Crowdfund Insider


The StartEngine crowdfunding investment platform submitted a Form 1-A updated with the Securities and Exchange Commission (SEC) which indicates the intention to accept both Bitcoin and Ethereum during a security token offering Reg A + (STO). The document, filed this week at the SEC, is a revised post since the original 1-A form was filed at the end of June without the language indicating the acceptance of virtual currencies as payment.

According to the language in the document; [19659003] "The company is trying to raise up to $ 10,000,000 (the" highest bid amount in dollars "). We will accept US dollars, Bitcoin (" BTC ") or Ether (" ETH ") as consideration for ordinary shares , preferred shares and tokens Investors offering BTC or ETH may receive fewer Ordinary Shares, Preferred Shares or Tokens than expected as a result of any volatility between the time of receipt of such consideration and the relative conversion. "Distribution Plan." The shares of Ordinary Shares and Preferred Shares will be delivered in the form of an accounting entry or, at the choice of the investor, in the form of token on the Ethereum Blockchain.The maximum amount of the offer in dollars can be increased through the sale of common shares or common tokens or preferred shares or preferred tokens or any combination of these. oni common in this offer will be required to grant a proxy to vote their shares at the company's CEO; see "Risk factors" and "Securities offered – Ordinary shares – The proxy". This means that the control of the company's vote will remain in the hands of the CEO of the company and its president. See "Properties of security management".

This is interesting because issuers who use the Reg A + exemption have difficulty accepting BTC or ETH as payment. StartEngine has hired Prime Trust, a deposit and custody platform that is active in the alternative business sector, to help manage the offer. Prime Trust wrote at the beginning of this week that accepting encryption as payment in an offer is admissible but advised the issuers to pursue it.

High Times, a company about to raise capital using the Reg A + exemption, initially launched its offer with the intent to accept the encryption announce "will become the first equity offering to accept cryptocurrencies as Bitcoin and Ethereum. " But the company immediately withdrew, accepting cryptography because it was not considered possible.

StartEngine is a complete crowdfunding platform offering Reg D, Reg A + and Reg CF. In addition, StartEngine offers the possibility for companies to issue blockchain-based shares. StartEngine began the process of becoming a registered FINRA broker as well as a secondary market for alternative businesses. StartEngine hopes to raise up to $ 10 million in this STO.

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