Blockchain Initial Coin OfferingsThe Future for Online Investing or Regulatory Crisis?

National Crowdfinance Summit – Toronto – March 1, 2017#CCS2017

Alan Wunsche, MBA, CPA, CA, CBP @alanwunsche

@LeadingK @TokenFunder @BlockchainCAN

Audience Poll : Do you “own” any of these ?

@alanwunsche

Blockchain has unleashed global

financial disruption@alanwunsche

Cryptofinance

@alanwunsche

Initial Coin Offerings(ICOs)

The dawn of cryptofinance…with cryptocurrency

@alanwunsche

“An ICO is an event in which a new cryptocurrency project sells part of its cryptocurrency tokensto early adopters and enthusiasts in exchange for money today. ICOs provide a way for cryptocurrency project creators to raise money for their operations. Most ICOs raise money in Bitcoin or other cryptocurrencies.”

What are Initial Coin Offerings (ICOs) ?

SmithandCrown.com

@alanwunsche

Token:1ST Raised:$5.4M Date:Oct.2016

US

FirstBlood isan eSports projectthatallowsuserstocompeteinonlinegames

Platform:Ethereum

0xAf30D2a7E90d7DC361c8C4585e9BB7D2F6f15bc7@alanwunsche

Token:SNGLS Raised:$7.5M Date:Oct.2016

CHEPlatform:Ethereum

0xaeC2E87E0A235266D9C5ADc9DEb4b2E29b54D009

@alanwunsche

$US 8.6 millionin 29 minutes

0xa74476443119A942dE498590Fe1f2454d7D4aC0d___________ raisedCHE

@alanwunsche

>$US 200 million Raised

The DAO (2016)

• ~$250 Million• Not included in chart

@alanwunsche

How do ICOs Work?

@alanwunsche

Smart Tokens are Blockchain Software Code

@alanwunsche

Smart Tokens: A Disintermediating Force

Investorsendscryptocurrencytoasmarttoken Companyaccessescryptocurrencyheldintoken

SmartTokenrecordsinvestorastokenholder

1

2

3

0xda0aed568d9a2dbdcbafc1576fedc633d28eee9a

0xa74476443119A942dE498590Fe1f2454d7D4aC0d

@alanwunsche

Investment without Permission

PAY HERE @alanwunsche

ICO Myth: Blockchain Means Anonymity

@alanwunsche

Why are ICOs

taking off?

@alanwunsche

Crossing into the Cryptocurrency Space

Immutable,auditable

Lowcostliquidity

Globalplatforms

2017 © TokenFunder@alanwunsche

Tokens will Power Applications

STAMPSmartTokenAsset

ManagementPlatform

2017 © TokenFunder@alanwunsche

What could go wrong?@alanwunsche

ICOs are being launched in Unregulated jurisdictions

@alanwunsche

Regulatory ArbitrageNo KYCNo Investor Protection

Full KYCInvestor Protection

Many Unregulated ICOs A few (legal?) ICOs

@alanwunsche

1930

TruthinSecuritiesLaw

(1933)

1980

Deregulation“TheGreenspanEra”

(1987-2006)

“DoddFrank”WallStreetReformandConsumerProtection

Act(2010)

IPO’s CDO’s ICO’s(2014-

SecuritiesFraudPreventionAct

(1928)

1920 2010

Financial“Innovation”

Regulations

Bitcoin(2009)

1990…. ….

Are blockchain coins and tokens

securities?

2014 2016

Financial History Repeats Itself

ITO’s(2017-

@alanwunsche

Capital knows no borders

@alanwunsche

www.tokenfunder.io

From ICOs to ITOs

Canadian-based Initial Token Offerings Coming Soon

@alanwunsche

@LeadingK @TokenFunder @BlockchainCAN

Blockchain Initial Coin OfferingsThe Future for Online Investing or Regulatory Crisis?