Recently the analytical center, focused on the technology of the blockchain, has announced the launch of a program called JOBS Offering Crypto as an alternative to ICO. The initiative is aimed at solving regulatory problems associated with the primary sentences tokens (ICO).
The new center is called the Institute of innovation of the blockchain (IBI) and consists of 60 participants, including global leaders in the banking industry and high technology. Among the participating companies included Finova, Indiegogo, 500 Startups, Ausum Ventures, Salesforce, Raiffeisen Bank International and BPC Banking Technologies. In a press release reported that «a new analytical center brings together the world’s innovators of the traditional system and industry of the blockchain and cryptoprotection, and leaders from the corporate, scientific, regulatory, commercial, venture, and government sectors.»
The founder and Chairman of IBI COH Gregory (Gregory Keough) says:
«We believe that the blockchain will become a powerful mechanism that will do secured and many people will contribute to innovation on an unprecedented level.»
The head of the company Ausum Ventures Jeremy Gardner (Jeremy Gardner), who is also one of the founders of IBI, said: «I am confident that the blockchain and cryptocurrencies will completely replace the existing financial services and investment system wall Street».
One of the objectives of the IBI is to identify and support key initiatives in the sector of the blockchain. The first program is called project Crypto Offering JOBS (JCO) and is aimed at a new approach to trade tokens that the participants of the program called «electronic equity securities» (shared tokens) in the blockchain.
This new hybrid model of crowdfunding is aimed at resolving problems of companies faced with gaps in the legal regulation of the ICO, as well as «provision of a route from the primary capital to IPO on the blockchain». IBI considers this model as a method by which global companies will have easier access to financial resources that can be used for the development of their companies.
JCO offer based on the act of 2012 called the Jumpstart Our Business Startup (or JOBS) Act and uses program Delaware Blockchain Initiative to create fast, based on the blockchain method of promoting startups. JCO works in three stages:
Phase 1 — In accordance with regulation D the company offers the accredited investors to sign a purchase agreement at the stage of pre-sales. Such contracts of sale unofficially called «Block-SAFE».
Step 2 — once the company collects the planned capital, it shall submit the documents to the Commission on securities and exchange Commission (SEC) for permission to issue equity securities in accordance with regulation A+, or submits a registration statement in compliance with the securities Act.
Step 3 — In accordance with regulation A+ securities be available for accredited and pakretuone investors and can be traded on alternative and traditional exchanges that have permission SEC.
According to the IBI, this is based on the blockchain approach «provides liquidity in the crowdfunding model, creates a more rapid transition to IPO and expanding funding opportunities, taking them beyond the traditional route of venture capital». Unlike ICO, JCO solution «is designed to offer first to market is tied to capital token that can be traded in bitcoin, and provide assets in American dollars.»