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Indeco Launches First Token Pre-sale Under SEC’s Regulation Crowdfunding Rules

Traders Magazine Online News, December 11, 2017

John D'Antona Jr.

At Token Summit, the conference on the emerging token-based economy, Indeco announced the world’s first crypto asset pre-sale under the SEC’s rules for Regulation Crowdfunding (“Reg CF”). Reg CF allows everyone, regardless of their net worth or income level, to invest in securities issued by startup companies. 

With the price of a single bitcoin recently cresting above $10,000, interest among investors for crypto assets has been intense. New crypto assets, also known as “coins” or “tokens,” are typically issued in Initial Coin Offerings (“ICOs”).

Yesterday, the SEC’s new Cyber Unit, created in September to regulate ICOs, took its first action, freezing the assets of PlexCoin which promised investors returns of $1,354% in less than 30 days. Since August, PlexCoin has raised $15 million from the sale of its tokens.

“We are committed to complying with SEC rules and regulations in this pre-sale period, in our proposed ICO, and throughout secondary market trading,” said David Levine, Indeco CEO. “We believe all crypto assets will be subject to regulatory scrutiny, and we plan to create substantial value for our investors by proactively developing a compliant offering.”

Indeco is pioneering a shared ownership model of sustainable infrastructure assets such as solar energy systems, battery storage and the building control systems that can make dwellings and communities smarter, safer, cleaner and more enjoyable.

Indeco also announced today the company has joined the fall 2017 cohort of Smart City Works, a business actuator and accelerator for startups reinventing the built environment.

“Meeting the needs of 21st cities and their growing populations will require substantial capital, and Indeco has devised a compelling shared ownership solution that can benefit many next-generation infrastructure companies transforming cities and communities,” said David Heyman, co-founder of Smart City Works, former Assistant Secretary of the Department of Homeland Security for Policy and board member of Indeco. “Indeco is a perfect complement to our stable of innovators improving the livability, operations and resilience of communities around the world and here at home.”

Indeco has attracted a stellar board of directors, which includes:

  • Executive Chairman Paul Feldman, former CEO of Columbia Energy and Utilicorp United,
  • Russ Bruemmer, retired partner and chair of WilmerHale Financial Institutions Group, Former CIA General Counsel and former Chief Counsel-Congressional Affairs for the FBI,
  • Denise Denson, angel investor and former EVP Global Content Distribution at Viacom, and
  • Jeff Hembrock, former president of Miller Brewing Company

Indeco is offering its token pre-sale on StartEngine, a crowdinvesting platform that is regulated by the SEC regulations. StartEngine’s CEO, Howard Marks, validated Indeco’s plans in a recent blog post, “The right solution is to ask ICOs to use one of the SEC exemptions, which include Regulation Crowdfunding to raise up to $1M, Regulation A+ to raise up to $50M, or Regulation D 506(C) to raise an unlimited amount from accredited investors… The SEC exemptions also allow investors to make informed decisions because they require documentation disclosure requirements.”

This year, the SEC investigated one token, issued by The DAO, and determined that the crypto asset was a security and therefore subject to federal securities laws. The SEC’s report “confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies.”

By complying with the rules and regulations governing the issuance of securities, Indeco intends to create exceptional value and a positive experience for all participants in our independent ecosystem.

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