Genesis Block is pleased to announce a new strategic partnership between our broker-dealer affiliate, GB Capital Markets Inc. (GBCM), and BlockEx, a digital asset exchange provider for institutional-grade financial markets participants. The two companies have joined forces to provide issuers with access to the BlockExMarkets.com exchange platform in order to accept U.S. institutional customers in a compliant manner. Under the agreement, BlockEx will offer its technology to European Initial Coin Offerings (ICOs) that want to access U.S. accredited investors through GB Capital Markets, a FINRA-registered broker-dealer.
“We are delighted that the European market for ICOs and other digital asset tokens will now be open to U.S. purchasers in a way that is compliant with U.S. law,” says Adam Leonard, CEO of BlockEx. “We expect the service to be available within 90 days.”
Scott Rothman, president of GBCM, adds, “Both GB Capital Markets and BlockEx believe that the market for digital assets should be well regulated, and we’re happy to partner to bring this to the U.S.”
Genesis Block team members and other thought leaders from the worlds of finance and technology discussed The Future of Finance at Fluidity Summit 2018. As part of the event, Genesis Block co-founder Lee Schneider moderated a panel discussion on Tokenization and the Path Towards Liquidity.
“Rather than focus on whether a token is a security, we tried to talk about what the broad world would be like when you can tokenize anything,” says Lee. “People go online and see digital representations of what they want to buy every day, whether it’s a song they want to download or 500 rolls of toilet paper. That’s all blockchain tokens are: digital representations of anything from a song to rolls of toilet paper to equity in a company. And the point of having a digital representation is it makes everything more tradeable. Every digital representation on Amazon is something you can trade with or through Amazon. With blockchain, it’s conceptually the same thing, except now you can trade with anybody who’s on the same blockchain. The cool thing about blockchain is that it can be used to divorce assets from a central authority. But the even cooler thing is, it lets you know that you’re buying the only one of that digital thing.”
Genesis Block co-founders Lee Schneider and Sam Proctor, and Scott Rothman, president of our broker-dealer affiliate, attended Consensus 2018, CoinDesk’s 4th annual blockchain technology summit. “It was awesome to see all the amazing blockchain projects and solutions,” says Lee. “This year’s Consensus clearly demonstrated that blockchain has officially arrived and is now moving into the next phase of its evolution. Part of that evolution is the emergence of the security token and the SEC’s growing regulatory view. We can expect to see continued momentum behind security tokens throughout the rest of 2018 and beyond, accompanied by an expanding role for registered broker-dealers and a higher bar for compliance with securities laws and regulations.”
It was a lively debate at the CDX Academy Blockchain Brand Innovation Summit as Genesis Block general counsel and strategic advisory manager Cathy Yoon moderated a panel discussion entitled Can Blockchain Transform Healthcare?
“When people talk about blockchain, the most obvious use case is healthcare — driving business efficiencies, channeling transparency, and so on,” says Cathy. “However, not everyone is convinced. From the perspective of hospitals and healthcare systems, such blockchain solutions may be too expensive and impractical to implement at this time. However, this doesn’t mean hospitals or healthcare do not believe in the power of blockchain. It just means blockchain developers may need to do more research into how healthcare systems really work before they can make a difference in healthcare.”
Genesis Block advisory client’s Quadrant Token continues to make news. In an article in Bloomberg, analyst Richard Johnson of Greenwich Associates notes, “This is where the real potential of blockchain comes in, where assets are digitized as opposed to a purely post-trade infrastructure solution. I really see it as a logical progression. I think all companies will be listed this way in the future.” Genesis Block provided regulatory, strategic business, technological, and marketing advisory for this groundbreaking token launch.
Presales of tokens, also known as Simple Agreements for Future Tokens (SAFT), are popular among startups looking to raise capital with a minimum of regulatory fuss. But Genesis Block co-founder Lee Schneider does not recommend them. The Wall Street Journal recently asked Lee about SAFTs, to which he replied, “Since the SEC seems to think that most tokens are a security, that is going to lead them to a dramatically different conclusion than what the SAFT seems to want to have.” For better ways to raise capital, contact us.
Genesis Block is pleased to announce the acquisition of a registered broker-dealer. Our new affiliate company will be led by Scott Rothman, who has been named president of the firm. For more information, please contact us.
Genesis Block co-founder Raleigh Harbour attended StartEngine ICO 2.0, a day-long summit highlighting everything ICO: structuring ICOs, marketing ICOs, ICO regulation, and the path to liquidity. Attendees included top ICO investors, advisors, and founders, who discussed actionable insights into leveraging and marketing ICOs.
Genesis Block co-founder Lee Schneider and his co-host former SEC Commissioner Troy Paredes recorded a special live edition of their podcast, Appetite for Disruption, at BlockFin at LendItFintech USA 2018. Their guest for this unique event was Lou Kerner, co-founder of CryptoOracle. Lee and Troy talked to Lou about how he got into crypto, starting out as a skeptic, then becoming a total believer in the power of blockchain and its potential to become the database layer for the new Internet.
BlockFin is the world’s largest event covering blockchain in financial services, bringing together the top innovators and experts from the entire blockchain ecosystem, including technology platforms, crypto companies, startups, investors, VCs, and banks.
Harvard Business School’s Blockchain, Bitcoin and Cryptocurrency Club invited Genesis Block co-founder Lee Schneider to speak at the first Business, Regulation and Technology of Blockchain Conference. Topics included:
This day-long conference was held in conjunction with the MIT-China Innovation & Entrepreneurship Fund and the Harvard Law Entrepreneurship Project’s Blockchain Initiative. Joining Lee at the microphone were industry entrepreneurs, investors, and other FinTech thought leaders.
International Business Times heralds the emergence of legimitacy for ICOs with the launch of Quadrant Token, and gives a nod to Genesis Block as a key advisor in the blockchain space. “[A]nother world is beginning to emerge from within the crypto world,” reports Gary Miller, “a world with real companies offering real products that people can actually understand, and they are beginning to use blockchain tokenization — yes, ICOs — to simply raise capital ... seeing a company avail itself of the innumerable benefits of blockchain technology for this purpose is actually quite groundbreaking.”
Miller goes on to say of Genesis Block, which provided advisory for the token launch: “Genesis is delivering to Quadrant a full suite of services including assistance in navigating the legal and regulatory landscape, providing communications and public relations services, and of course assisting with technology.” Read more
Are security tokens the future of funding for blockchain projects? MintHealth, a global, decentralized health platform, thinks so. “In 2017, ICOs took the world by storm,” writes Samir Damani, CEO and co-founder of MintHealth. “These ICOs have been predominantly tokens with utilitarian value .... However, in just one short year, we have seen the sun-setting of the ICO as we came to know them. We are now experiencing the dawn of a new era for funding Blockchain startups via a more stable, regulated vehicle known as the Security Token.”
On March 15, MintHealth announced a move toward a two-token structure: a security token that entitles holders to a royalty percentage of revenues and equity ownership in MintHealth, and a utility token that is used within the MintHealth ecosystem in lieu of traditional currency. Genesis Block is providing advisory, including guiding them through the pre-sale and public sales processes, providing insights into investors, and helping them navigate the increasingly complicated regulatory and legal crypto landscape to ensure compliance with U.S. securities and other laws.
Quadrant Biosciences kicked off the Quadrant Token Sale on March 13, embarking on what Smith + Crown, an independent blockchain research organization, calls “one of the first instances of something many anticipate will become a pronounced trend.” Quadrant Biosciences is a pioneering biotechnology company that is revolutionizing the diagnosis, management, and treatment of concussions and other health conditions, including autism spectrum disorder and Parkinson’s disease. Genesis Block has been providing advisory, including regulatory and strategic business guidance, as Quadrant tokenizes its common stock in an offering that is compliant with U.S. securities and other laws.
The Information names Genesis Block co-founder Lee Schneider one of the most prominent attorneys specializing in regulations affecting cryptocurrency and blockchain investments. “It’s expertise that clients are clamoring for,” writes reporter Sarah Kuranda, “with startups, investors and big companies all looking for counsel in the new and fast-evolving sector. While regulation up until now has been limited, many people expect U.S. authorities to impose new rules on cryptocurrencies and on initial coin offerings in particular, intensifying the demand for legal help.” Read more
Genesis Block co-founder Lee Schneider was the keynote speaker and panelist at Blockchaingers: Legal Deep Dive, a conference bringing together lawyers, regulators, developers, entrepreneurs, governments, corporations, and scholars to explore the legal challenges posed by blockchain implementations and the legal aspects concerning blockchain in general, smart contracts, and ICOs.
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