By now, even non-bitcoin enthusiasts may have heard of a fundraising process called initial coin offerings. The Securities and Exchange Commission has cracked down with accusations of fraud and scores of subpoenas this year.
But the CEO of Overstock, which is under SEC investigation, says there’s a safer way to raise money through crypto: Security Token Offerings. “It’s the new term,” Overstock CEO Patrick Byrne said.
“The industry is distinguishing very clearly now between ICOs and STOS.” This week, Overstock announced a $2.5 million investment in three-wheel car startup Elio Motors.
The automaker also announced the launch of “ElioCoin” to fund production and made clear in an announcement it was a “security token offering.” The process is being led by Wall Street trading firm JonesTrading Institutional Services.
“It is a very clever offering, and could represent a whole new model for American entrepreneurship,” Byrne said. Roughly $9.8 billion has been raised through ICOS since 2016, according to financial research firm Autonomous Next. Read more from cnbc.com…
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