Operation Crypto-Sweep Begins

Winter is coming for Initial Coin Offerings  in the form of “Operation Crypto Sweep” that started at the beginning of May.

The Wall Street Journal reports that U.S. and Canadian securities regulators have instituted almost “70 open investigations and 35 pending or completed enforcement actions” and a source says it’s just the tip of the iceberg.

Also announced was an agreement among state and federal securities regulators and the Commodities Futures Trading Commission to share non-public enforcement information.

Watch this space for more enforcement actions.

https://www.wsj.com/articles/state-and-provincial-regulators-in-u-s-and-canada-target-initial-coin-offerings-1526918512

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Posted in accredited investor, CFTC, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology, VC, Venture Capital | Tagged , , , , , , , , , , , , , | Leave a comment

Crowdfunded Business Fails

“A Very Sad Goodbye” is the latest update from Ossic X’s Kickstarter page.

Although it is apparently still asking for money, the company says “It is with an extremely heavy heart that we must inform you that OSSIC is shutting down and will be unable to deliver the remaining OSSIC X headphones.”

After raising about $6 million on Kickstarter and Indiegogo and some VC money, the result was the inability to mass produce and ship their 3D headphones.

They intimate that with another $2 million they might be able to fulfill their promises to 22,000 customers, but it seems unlikely.

Sorry, but sometimes businesses fail not for lack of trying.

https://techcrunch.com/2018/05/20/after-tens-of-thousands-of-pre-orders-high-end-3d-headphones-startup-ossic-disappears/

Posted in accredited investor, balance, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology, VC, Venture Capital | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

Crypto-Currency For Film Financing

Notwithstanding regulators’ warnings, cryptocurrencies continue to proliferate with another film-oriented token premiering at the Cannes Film Festival.

According to the promoters, “Hubii film provides film projects with a blockchain based decentralized marketplace focused on changing two key processes for film makers: Access to new funding sources and promotion support during the fundraising phase.”

Every production will have a separate coin that will trade in the secondary market.

Their first production will focus on, of course, the Bitcoin  Goldrush.”

https://www.flickfeast.co.uk/film-festivals-2/hubii-film-cannes2018/

Posted in accredited investor, Banks, CFTC, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, Funding Portals, Investments, Jobs, Legislative Intent, SEC, technology, VC, Venture Capital | Tagged , , , , , , , , , , , , , , | Leave a comment

SEC Runs Initial Coin Offering Scam

The newest, fabest ICO (Initial Coin Offering) pre-sale went live yesterday, the HoweyCoin.

It offers a 15% bonus if you buy now, a number of executives who don’t exist, over 1% daily returns (go figure) and celebrity promoters.

Sound fishy?

It is.

If you click on the link, it takes you to the Investor-dot-gov website that announces: “If you responded to an investment offer like this, you could have been scammed – HoweyCoins are completely fake!”

This little exercise was backed up by the article in today’s Wall Street Journal that noted that in their study of 1,,450 digital coin offerings, it found 271 with red flags that include plagiarized investor documents, promises of guaranteed returns and missing or fake executive teams.

http://www.howeycoins.com/index.html

Posted in accredited investor, Banks, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology, VC, Venture Capital | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment

Who Is Crowdfunding Stormy?

The Washington Post is noting questions that have arisen (mostly by conservatives who support the President) about the crowdfunding campaign to pay the legal fees for Stormy Daniels’ attorney.

Unmissable on liberal cable TV, Daniels’ lawyer Michael Avenatti set up a charity page that has raised $493,515 pledged of the $850,000 stretch target by 14,462 people to date.

While some have asked if this is just a Democratic “hit job” operation, Avenatti points to the fact that “average donation for Daniels’ case was $34, which is “consistent with average donation amounts across the platform.” Only 24 of the donations have been over $1,000.” In this age of conspiracies and pseudo-conspiracies, just raising the question makes it questionable.

https://www.washingtonpost.com/entertainment/celebrities/stormy-daniels-crowdfunding-raises-transparency-questions/2018/05/15/8167c760-586b-11e8-9889-07bcc1327f4b_story.html?noredirect=on&utm_term=.696b9f38fc3e

Posted in accredited investor, balance, Charity, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, Funding Portals, Legislative Intent, review | Tagged , , , , , , , , , , , , , , , , , , | Leave a comment

Crowdfunding Women More Successful

Perception is reality.

Although the venture capital world is less likely to fund a female-driven startup, the crowd happens to like them.

PriceWaterhouseCoopers found that “found women-led crowdfunding campaigns are 32 percent more successful than male-led campaigns. And the average pledge amount to women-fronted campaigns ($87) is 5 percent higher than pledges to those by men.”

The reason is that the crowd (especially younger donors) perceives female executives as more trustworthy than men and that competence is less of a factor due to the overall riskiness of the startup.

This is due to the belief that women lie less than men and when they do lie, it’s to benefit others (“you look great”), while men tell “self-lies” to help themselves.

With the momentous #metoo movement, this may be predictive of a sea change in both business and politics.

https://nypost.com/2018/05/14/why-women-are-more-likely-to-be-funded-on-kickstarter/?utm_campaign=partnerfeed&utm_medium=syndicated&utm_source=flipboard

Posted in accredited investor, balance, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology, VC, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , , | Leave a comment

HBO’s Silicon Valley Tries Crypto-Currency

Pied Piper decides to circumvent its Venture Capitalist and a $30 million Series B in order to raise the money via an Initial Coin Offering.

The ICO offers Richard freedom from the constraints of the VC’s micro-managing but he will also forego the VC’s connections, advice and prestige.

Freedom has its price.

(HBO’s “Silicon Valley” Season 5, Ep.7).

http://padailypost.com/2018/05/07/silicon-valley-season-5-episode-7-taking-a-swipe-at-cryptocurrencies/

 

Posted in accredited investor, balance, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding Platforms, Investments, Jobs, review, technology, VC, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , | Leave a comment