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Blockchain ICO/IEO/STO
January 16, 2019
Alex G. Lee (alexglee@xanadubigdata.com)

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Contents
-ICO Introduction
-ICO Fundraising Status
-220 Prospective Blockchain Startups ICO Fundraising Analysis
-SEC ICO Regulation Status
-How to Avoid or Comply SEC ICO Regulation & STO

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ICO Introduction
Initial Coin Offering is a cryptocurrency version of IPO to raise the fund
from public.
Tokens (e.g. ERC-20 token) are issued during the ICO in exchange of
some cryptocurrencies like Bitcoin, Ethereum etc.
* ICO Information
ICO Watch List: Link
Top 100 Tokens By Market Capitalization: Link
IEO (Initial Exchange Offering)

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ICO Fundraising Status
Funds raised in 2014
Total raised: $16,032,802
Number of ICOS: 2
Funds raised in 2015
Total raised: $6,084,000
Number of ICOS: 3
Funds raised in 2016
Total raised: $90,250,273
Number of ICOS: 29
Funds raised in 2017
Total raised: $6,137,710,958
Number of ICOS: 873
Funds raised in 2018
Total raised: $7,541,925,063
Number of ICOS: 1247
Source: ICODATA (https://www.icodata.io/)

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220 Prospective Blockchain Startups ICO Fundraising Analysis
CB Insights: 135 Blockchain Startups That Have Raised Money Through ICOs
Crypto News: Top 50 Blockchain Startups 2017
Forbes: Keep An Eye On These Blockchain Startups Throughout 2018
Investopedia: Top Blockchain Startups to Watch in 2018
Ignite: Top 8 Blockchain Startups to Watch for 2018

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220 Prospective Blockchain Startups ICO Fundraising Analysis

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220 Prospective Blockchain Startups ICO Fundraising Analysis

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220 Prospective Blockchain Startups ICO Fundraising Analysis
Total $2,400

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220 Prospective Blockchain Startups ICO Fundraising Analysis
Total $1,300

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220 Prospective Blockchain Startups ICO Fundraising Analysis
Total $3,700

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SEC ICO Regulation Status
A security is an investment contract in which a person:
1) invests their money
2) in a common enterprise
3) with an expectation of profits
4) based on the efforts of the promoter or a third party.
All four elements are necessary to be considered a security.
Blockchain tokens are securities except (under development as of Aug. 2018)
tokens that are “sufficiently decentralized “ (e.g. Ether and Bitcoin): Token is
not reasonably expected to increase in value due to the issuer’s efforts
(business development, marketing and maintenance). Thus, almost all utility
tokens can be securities.
Non-compliance can result in:
shut down of offering and return of fund raised
fines and other sanctions
fraud lawsuit from investors

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How to Avoid or Comply SEC ICO Regulation & STO
ICO as IPO of a corporation’s stock
…. costly, complicated, time consuming
Exploit the lighter-weight regulations such as Regulations D, S, A+, or
Crowdfunding.
e.g. Regulations S Private Placement
US Investors: Only sell to verified accredited investors
*Must restrict resales for 1 year
Offshore Investors: OK subject to local law (e.g., restrict investor in China )
*Must restrict resales into the US for 1 year
Exclude US investors (US citizen & permanent resident ) from token offering
Structure the ICO as a donation initiative to a not-for-profit organization
*STO (Security Token Offering)

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