It’s a hot crypto mess out there.
Conferences that used to be standing-room-only are now at half-capacity or less. Attendees are shocked, fatigued, or both. And it’s obvious that enthusiasm is flagging.
Many people (including me) are inclined to believe we’re in some variant of the trough of disillusionment. And the change in attitude is welcome in some ways, as it means the “get rich quick” mindset is being supplanted by “how do we build substantive businesses” thinking.
One thing that has become evident in conversations at conferences is that our terminology is a mess. I find myself responding to “How’s your ICO going?” questions with a preface about the difference between Initial Coin Offerings and Security Token Offerings. What sounds like an arcane distinction becomes real when I use the examples of a stock certificate, a $50 bill, and arcade tokens. The difference as it relates to SocialFlow’s offering:
1. SocialFlow’s capital raise is being done via security token, which is more analogous to the stock certificate, in that it represents a special class of equity in SocialFlow’s capitalization structure. You can see the security token investment opportunity on SocialFlow’s StartEngine page.
2. Our Universal Attention Token is analogous in many ways to the tokens used in video game arcades. There is no intrinsic value in utility tokens; they can’t be redeemed for cash, and they have little speculative value.
3. Cryptocurrencies, and thus what people typically think about in Initial Coin Offerings, are analogous to a digital version of the $50 bill. Perhaps a decentralized, non-governmental, digital version… but fundamentally still a currency. And to be clear, SocialFlow is not offering a cryptocurrency. So the terminology “Initial Coin Offering,” or ICO, is not really applicable to what we’re doing.
So what happened when the Stock Certificate and the $50 Bill walked into a bar? They ran into a peanut, and a-salted him…
Much more to come!