Blockchain Strategy Consultancy

ICOs or Token Generation Events (TGEs)

ICOs are a time and cost intensive endeavor to do properly, and can take upwards of a year of planning, and half a million dollars (a lot of which goes towards legal fees) to execute properly. This is further exacerbated by the overwhelming demand, which has the top people in the ICO field booked well through the next year or two.

The extremely simplified steps of a TGE are as follows:

  1. determine token incentives and distribution model
  2. create the smart contract(s) that will execute this securely
  3. communicate the details of the TGE to the community
  4. execute the TGE, accepting contributions, and issuing the promised tokens

Before you do any of this, many companies consider where to incorporate the business, and where they plan to operate their business. Many cryptocurrency-based projects choose to locate in friendlier jurisdictions, but are then permanently based in that jurisdiction. It is a common misconception that one can simply incorporate overseas, conduct the TGE, and then start a fresh company in the States and transfer all of the money; it is not that simple. Many companies that choose to incorporate abroad choose to avoid the US entirely in marketing, and many restrict US-based contributions. This is due to certain restrictions on US non-accredited investors that would subject these companies to potential US jurisdiction, causing headaches all around.

Even still, a US-based company with US employees raising funds to physically conduct business in the US, for US consumers will bypass all of that and almost certaintly qualify that project as being under US jurisdiction, foregoing the need to deal with the jurisdictional dance.

Whether ICO’s are allowed or not is still a hotly debated issue, with the SEC opinions on the SAFT/SAFE being released about a month ago, and enforcement actions taken against a few projects since then.

For a new project debating whether to conduct an ICO or not, it is generally considered best practice to explore every other traditional source of funding; seed, angel, venture capital, loans, etc, before resorting to the ICO fundraising method. And even then, to limit the amount of funds raised to $1 million to qualify for the crowdfunding exemption, and if that’s not feasible, to limit the TGE to only accredited investors.

Who we are

  • Access to existing Blockchain company and investor ecosystem as needed
    • Ravi Anaparti: Ravi is an investment management professional with 12+ years of research/portfolio management experience and outstanding long-term track record in multiple asset classes (public and private equities, commodities, real estate) and sectors (Energy, Cleantech, Infrastructure). He is CoFounder of FinTech Silicon Valley & an active investor in market place lending, commercial real estate and cryptocurrencies. He currently advises multiple Fintech companies. Ravi started his career as an engineer, led product development and managed the tech center at a manufacturing company serving the energy, automotive and trucking industries. He is an alumni of Haas MBA program at UC Berkeley and has B.S (IIT Chennai) and M.S (Univ. of Iowa) in Mechanical Engineering. Ravi is passionate about financial education and inclusion.

What we do

  • Work with clients to define their Blockchain strategy and determine the business value proposition
  • Design and develop the business architecture of Blockchain solutions from a business functional perspective
  • Translate client requirements into Blockchain and technical specifications for implementation
  • Compare and select the optimal Blockchain platform for the clients needs (Ethereum, Hyperledger, Bitcoin, etc)
  • Define current and future operational scenarios (processes, models, use cases, plans and solutions) and work with client to ensure proper translation of business requirements to solution requirements. Skills include:
    • requirements definition
    • definition of key metrics
    • leadership of the process and organization aspects of the Blockchain computing program
    • governance
    • aligning solution processes with operational activities
  • Develop the Use Cases for Blockchain application independently and/or in consultation with the client, and can filter and select content to be put onto the Blockchain
  • Guidance on effective token distribution model
  • Develop high quality media production

Request a complementary call (typically 15 to 30 minutes) to determine the scope and nature of your project