When Joachim Sandgaard set about building a new blockchain system to protect medical records, the opportunity to raise funds from an initial coin offering made a lot of sense. After all, hundreds of ICOs had already raised billions to help fund blockchain-based ideas worldwide — with mixed results.
Some, including Filecoin, raised over $200 million and plan to use blockchain to reinvent how files are stored online. Others also raised millions, only to be shut down by regulators for misleading claims or outright lies, such as the boxer Floyd Mayweather-backed Centra Tech that said it had partnered with Visa and MasterCard when it hadn’t.
Sandgaard, whose company MedChain’s offices are at Innovation Pavilion in Centennial, realized he needed to approach the sale of his MedCoin cryptocurrency strictly by the book, even though the book hasn’t been written. His team sought advice from Gerald Rome, the state’s securities commissioner.
He treated it like a security, as the SEC recommends. During its pre-ICO in January, MedChain opted for federal crowdfunding, allowing non-accredited investors to invest up to $1 million.
The company raised about a half-million dollars and now plans a full-blown ICO to raise $15 million. “Nobody really had any guidance on how things worked. Read more from denverpost.com…
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