Trade X Confidential-Convincing Scam
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A few weeks back I wrote a blog article where I stated that I was not interested in preparing the legal paperwork for any company that was raising funds for a cannabis related company.
In the same article I said that I would also decline the opportunity to prepare the paperwork for an initial coin offering ICO. Either would be lucrative for me but in both cases I saw significant problems for the investors. I might have predicted that people would start sending me the paperwork for ICOs that were looking to fund cannabis businesses seeking my thoughts and comments. Trade x confidential-convincing scam binary option sheriff stick out as examples of how not to raise money for your cannabis business.
Crypto-currency is all the rage this year with some offerings raising millions of dollars in a matter of minutes and coins when issued quickly appreciating in price. Bitcoins for example have been appreciated significantly this year and some people think that Bitcoins are a legitimate investment, an assertion that is questionable at best.
The SEC correctly concluded that most crypto-currency offerings would fall within the definition of a security and thus its jurisdiction. There was really no surprise as the SEC initiated about a dozen enforcement actions against crypto-currency issuers before it wrote its report. Because an ICO is the offering of securities it is required by law to either 1 register with the SEC or 2 be exempt from registration assuming that an exemption is available.
In either case, the issuer of the coins is required to give potential investors all the facts that would be material to making an investment decision. If investors who purchased the coins got a discount on an ounce or two of marijuana the coins might not be securities. These two cannabis ICO offerings are clearly offering securities.
In both of these cases, investors profit if the underlying business profits which is more than enough for these to be securities and the SEC to have jurisdiction. There are some facts which the SEC and trade x confidential-convincing scam binary option sheriff securities lawyer would consider to be material.
Nothing really earth shattering,but the SEC has been reviewing offerings and ruling on how these facts are disclosed for decades. Making the disclosures correctly requires a fairly good idea of what the SEC expects and an equally good idea of the operation of the business offering the securities which is why securities lawyers trade x confidential-convincing scam binary option sheriff prepare offerings really have to know what we are doing.
I doubt that it was prepared by a securities attorney. From the Green Paper: Why should I trust the team? We ask that all investors do their research on the people behind Growers International. Our lead developer has found success in both the cryptocurrency arena as well as in the cannabis industry.
If there is any question regarding the legitimacy of the project, we encourage investors to reach out to Trade x confidential-convincing scam binary option sheriff Lead Dev personally on slack.
It is always a good idea to research the people who are running any company into which you are making an investment. Devvie Devnullius 40, Sweden ; Community Coordinator: Elypse 26, Detroit ; Community Manager: Charles drcharles 26, USA. I suspect that if you contact Mr. Wright as suggested he will vouch for them all if he bothered to ask their last names.
Do not bother to ask about Members of the Board of Directors as they have apparently not yet been appointed, so one Director might turn out to be Pablo Escobar. The other cannabis related ICO I reviewed is prepared more professionally but still, in my opinion, misses the mark by a good country mile.
The company is called Paragon Coin, Inc. Just to be clear Paragon supports the cannabis industry, it does not appear that it intends to grow trade x confidential-convincing scam binary option sheriff distribute cannabis itself. Paragon intends to bring block chain to the cannabis industry.
It intends to use a distributed ledger to bring order to this fragmented industry. All that is fair enough and the names and pictures of the operating personnel are included. Their education and work histories going back 10 years which Trade x confidential-convincing scam binary option sheriff would have expected to see are not present.
The White Paper clearly notes that cannabis is not legal at trade x confidential-convincing scam binary option sheriff federal level and asserts that it will only operate in states where it is legal. This is the prime oxymoron of the cannabis industry. Illegal at the federal level is illegal everywhere. Marijuana is a Schedule I drug and possession or sale is a felony in all 50 states. That is a fact about which that the cannabis industry trade x confidential-convincing scam binary option sheriff not want to think and largely ignores.
This derives verbatim from the Cole Memorandum which was written in as a direction from the US Department of Justice to Federal prosecutors as to how they should allocate their resources when they decide who to prosecute and for what.
It never made cannabis legal anywhere. More importantly, the Cole Memo it is not an Act of Congress or Federal regulation and not binding on the current administration in any way. Any suggestion that it will continue to be followed under the current administration is wishful thinking given the Attorney General has repeatedly stated that it will not. Medical marijuana has been legal in California for more than a decade.
That did not stop the federal government from raiding and closing down a large medical dispensary in Oakland, CA in Perhaps the most troubling aspect of this offering is that it intends to fund the use of block chain, a relatively unsecure distributed ledger to link the many growers and suppliers in the cannabis industry.
If successful it may well deal a serious blow to the cannabis industry it is trying to support. One of the leading ICO platforms, Coinbase, has been engaged in a two year battle with the Internal Revenue Service which wants a list of all the people who use its platform to trade Bitcoins.
The IRS alleges that people are trading the coins profitably and not reporting the gains and paying the taxes. The US government has also alleged that drug cartels and other bad actors use crypto-currency to launder money. If you are in the trade x confidential-convincing scam binary option sheriff industry you have certainly heard stories of how the DEA would obtain the customer lists of hardware stores that sold supplies for hydroponic growing.
Everyone who was a customer did not use these supplies to grow cannabis but the government used those lists to identify and prosecute people who did. Think that will be difficult because Paragon never touches any marijuana or sells it? The icing on the cake will be when they tell the judge that the cannabis industry is full of drug cartels and money launders which, of course, it is. When you write the risk factors for a securities offering, it is important to disclose all of the things that might reasonably occur.
The people behind this offering somehow refuse to accept that there was an election last November and that there is a new sheriff in town. What I took away from these two offerings was a sense that they were prepared by amateurs who were attempting to do something that was way over their head.
In this current administration, raising money for a cannabis company waves a red flag in front of the US government. Compounding that fact by raising money through an ICO just increases the size of that red flag, exponentially. A lot of people seem to believe that technology will fundamentally change or disrupt finance and the financial markets. Many, if not most, of those people seem to be developing technology, selling it or using it to sell products to investors and financial consumers.
Most of these people seem to have degrees or backgrounds in technology not finance. Having a background in technology does not give you an understanding of finance or the financial markets. You cannot fix or disrupt what you do not understand and the lack of understanding behind many of these products is simply ridiculous. I only write about the law and the financial markets. I spent my career as an attorney working in and around the financial markets. I also taught Economics and Finance so I have a pretty well rounded idea about how the capital markets work and how they are evolving.
So I feel perfectly justified to call out the many techies who think they understand the financial markets even though they have never worked in the markets or studied finance. It is an interesting thought, except that these mathematicians have no math to back up much of trade x confidential-convincing scam binary option sheriff they say about finance. At the same time, there is an ongoing narrative that suggests that everyone who works in the financial markets is evil.
The capital markets trade x confidential-convincing scam binary option sheriff millions of transactions every day involving trillions of dollars and the almost all of those transactions settle with both the buyer and seller happy.
Banks and stockbrokers fund schools, universities, roads and hospitals and virtually every company since WWII, again without serious problems or complaints from anyone. Banks aggregate and intermediate capital and over all they do it quite well. So what, exactly, needs disrupting? Still there is a never ending stream of new products and services which claim to be revolutionary and which promise to disrupt the capital markets. On closer examination many of these innovations are more hype than substance.
Say what you will, there is nothing disruptive here. A few examples for your consideration:. They attempt to anticipate the price at which the next trade or subsequent trades will occur.
Logic says that computers should be able to take in more information that is pertinent to stock trading, analyze it almost instantaneously and execute transactions in micro seconds. It sounds right, but the reality is that all stock trading is binary; every buyer requires a seller.
No one buys a stock unless they believe that the price will appreciate; sellers generally will only sell shares when they think the price will appreciate no further. Both sides to any trade cannot be correct. Analyzing the information or executing faster is of no use unless each trade you make is profitable.
No one has yet figured out how to accomplish that, nor are they likely to do so. What we are talking about is predicting the future which is difficult to do even if only a micro-second or two ahead. And please do not suggest that artificial intelligence will change this. If there is one right answer based on the current information, e.
Robo-advisors do not actually attempt to anticipate future market performance. They make investment recommendations based solely on the past performance of the markets. Anyone who has trade x confidential-convincing scam binary option sheriff bought a mutual fund is required by law to be told that past performance is not a basis for future results. But that is all you get with a robo-advisor. FINRA did a study of a half dozen robo investment platforms and found that they provided widely divergent portfolios for the same types of investors.
No robo is any better than any other and none is really worth anything. Aficionados of crypto currency actually think that they are developing an alternative currency for an alternative financial system.
People seem to want to just print their own money and on one level I can understand that.