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> Before I move on to the next topic I want to raise one more narrow, distributed ledger or "blockchain"-related legal issue by means of a hypothetical. I doubt
by benwilber0 9y ago
> Before I move on to the next topic I want to raise one more narrow, distributed ledger or "blockchain"-related legal issue by means of a hypothetical. I doubt anyone in this audience thinks it would be acceptable for a public company with no meaningful track record in pursuing the commercialization of distributed ledger or blockchain technology to (1) start to dabble in blockchain activities, (2) change its name to something like "Blockchain-R-Us," and (3) immediately offer securities, without providing adequate disclosure to Main Street investors about those changes and the risks involved. The SEC is looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed ledger technology and whether the disclosures comply with the securities laws, particularly in the case of an offering.
- xur17 9y agoAnd there is at least one company that has done exactly this [0]. [0] https://www.vanityfair.com/news/2017/12/iced-tea-company-changes-name-to-long-blockchain-stock-immediately-skyrockets https://www.vanityfair.com/news/2017/12/iced-tea-company-cha...
- ceejayoz 9y agoAt least two (and this one's probably more egregious, in the SEC's eyes): https://www.theverge.com/2018/1/9/16869998/kodak-kodakcoin-blockchain-platform-ethereum-ledger-stock-price https://www.theverge.com/2018/1/9/16869998/kodak-kodakcoin-b...
- mywittyname 9y agoKodak has a plausible argument for pursuing BC; the iced tea company is just flagrant.
- ceejayoz 9y agoThe iced tea was first, though. Kodak went into their announcement knowing what happened to the iced tea company's stock.
- TomK32 9y agoNot first, everyone's forgotten the dot-com-mania?
- ceejayoz 9y agoThe iced tea company was the first to stumble upon the fact that adding "blockchain" to your company's name and making no other significant changes could boost your shares by 50% instantly. They have some plausible deniability that they truly intended to pivot the company and didn't know it'd have those effects.
- josh2600 9y agoI’m assuming you haven’t looked into the Kodak ICO? It’s actually quite well done.
- TallGuyShort 9y agoKodak had a very original idea to use blockchain technology to complement their existing business, targeting the same customers. It was done well enough that I bet they can provide a paper-trail of the idea that pre-dates what happened to the iced tea company's stock. They might get investigated, but I would bet confidently they'll walk away clean.
- philfrasty 9y ago„Pull a Kodak“ https://www.urbandictionary.com/define.php?term=pull+a+Kodak https://www.urbandictionary.com/define.php?term=pull+a+Kodak
- tlb 9y agoThe Kodak plan seems pretty good to me. Digital photograph copyrights are a solid basis for a coin. They're an asset class sensible people might want to make long-term investments in.
- PeterisP 9y agoThe key part of that comment is "without providing adequate disclosure" - it is acceptable for a public company to do everything listed above as long as the change in business model and the change in risk profile is properly disclosed; as long as what they're advertising (we're now working on a new super cryptoproduct!!!) to potential investors is actually true, and the shareholders (both current and future) are on board with what their company is doing.
- elmar 9y agoFor context let´s get into the Bitcoin "Slang" including "pump and dump". 7 Popular Bitcoin and Cryptocurrency "Slang" Terms via CNBC [1:35 duration] https://www.youtube.com/watch?v=bbhesgGZw2A https://www.youtube.com/watch?v=bbhesgGZw2A