StartEngine has decided to take ICOs into a whole new level. Being a US regulated crowdfunding business and a Regulation A+ platform, StartEngine will be the first crowdfunding platform to introduce ICOs, to the mainstream economy, as a modern vehicle for crowdfunding. Today, StartEngine published a press release that announced that the company will start accepting ICOs .
Last July, the US Securities and Exchange Commission (SEC) published a memo that outlined the risks of ICOs, while also highlighting the fact that some coins could be considered as forms of securities and thus, should be subjected to Federal Securities Law. The memo also pointed out the consequences of participating in a fraudulent ICO. Lack of central authorities in the world of ICOs markedly limits recovery options, especially that the number of ICOs has been growing at an alarming rate throughout the past few months.
Consequently, regulated crowdfunding platforms such as StartEngine can filter out fraudulent and/or unpromising ICOs. Initial Coin Offerings (ICOs), which are also referred to as “crowdfunding contracts”, have never been hosted on mainstream platforms such as StartEngine. ICOs that will be hosted on StartEngine will benefit from SEC registration which is an insurance for both the company and the investors.
Companies looking to host their ICOs on StartEngine have to be based in the US and can pay the hosting fees both in fiat and cryptocurrency. Cryptocurrency is expected to diversify StartEngine’s crowdfunding solutions. Throughout the past couple of years, the platform helped companies, that represent various sectors, raise more than $40 million from around 22,000 investors worldwide. The company, which is based in Los Angeles, offers democratized funding solutions that are far more innovative than those offered by traditional Silicon Valley’s startups.
StartEngine has marked the beginning of a new era in ICOs. Now, we can expect to see more ICOs that are compliant with SEC’s regulations. Also, ICOs will be introduced to the mainstream economy as innovative means for crowdfunding and raising capital.