[Beware] The coming STO boom will bring the scammers

 Hi , Between 2017 and 2018, it’s estimated that ICOs around the world raised more than $30 billion. Needless to say, that’s a lot of dough. Many Crypto traders were flush with Bitcoin and Ethereum profits, and they started piling money into ICOs at a record pace. Much of it was fueled by the spectacular run up in Cryptos towards the end of 2017... and sadly, much of it was for naught. You see... throughout the course of 2018, it was found that over 80% of ICOs were pure scams. While BMC members were fortunate enough not to invest in any outright scams, we haven’t had a 100% strike rate either. Truth is, I don't know anyone who has... and it’s practically impossible to begin with. That said, if you’ve followed my simple rules for investing in ICOs, you likely avoided the scammers out there. What’s more, we have two potential big winners still on the table with Uulala and Producers Market. Many BMC members were able to participate in one or even both of these. By June of 2019 Uulala will be using 150,000 tokens a day in their internal platform to record bill pay transactions on the blockchain. Producers just announced a partnership with IBM. And yet for every Uulala or Producers Market, there were at least 8 scams in the ICO boom. Now if you think the ICO scams were bad, just wait until the next boom which is set to disrupt the $10 trillion securities industry. I’m talking about Security Token Offerings (STOs) or Digital Securities Offerings (DSOs). I was one of the first guys out there to talk about Security Token Offerings back in January of 2018. This was when I consulted with Producers to launch out as a Security Token Offering and follow SEC compliance all the way. I predicted that Security Token Issuance would become a big deal. And while they haven’t taken off like ICOs did in 2017 just yet… I believe they are on the verge of exploding onto the scene in a big way. In the U.S., ICOs are all but dead... and I expect this trend to follow suit in the rest of the developed world throughout this year. Just yesterday the SEC issued its first ‘No Action’ letter clearing a specific ICO to sell tokens in the U.S. Get this though…it’s contingent on the company meeting certain conditions in the offering. Those conditions include: - Token generated funds cannot be used to develop the company’s platform technology (such as its app). - The tokens will be immediately useful. - The tokens will remain at a fixed price of one U.S. dollar. - Repurchases will only be made a discount to the token. - The company will not represent the tokens as having any profit potential. In other words, the token must function as a pure utility token and can never increase in value. On the other hand, security tokens are offered right up front as a security and as an investment. They are regulated by the governing body of whichever region they are offered in... which is just like a normal security. Unlike a normal security however, they are issued on the blockchain... and this has potential for major benefits to capital markets and to investors. For starters, since security tokens are issued on the blockchain, the cost of these transactions can be greatly reduced. Because you are investing in an asset through a token... You can break that ownership down into small fractions... just like you can own a fraction of a Bitcoin. This is really good for the average retail investor... and here’s why: Even with the Jobs Act of 2012... Retail investors have not had the opportunity to invest in Growth Stage companies which have produced massive returns for VCs and Institutional Investors over the past decade. They will with STOs. It’s also good for issuers because there is a reduced cost in raising capital. Lastly... it’s good for both investors and issuers because it offers a much more transparent investing solution. Similar to traditional securities, digital securities/tokens offer legal rights such as voting and dividend distributions. They provide added security for lost assets as well. Up until now, one of the challenges has been there aren’t many exchanges which support the trading of security tokens. This is going to change... and it’s going to change soon. I’ve been fortunate to be on some of the discussions amongst big players in both the securities market and the blockchain/crypto market... and I can tell you it’s coming quickly. With all this in mind... let me give you a word of caution. As Cryptos go through their next wave of growth there is the potential to see your wealth grow enormously. Be very wise when it comes to giving that wealth up in hopes of hitting the next big STO or DSO play. While there will be great plays out there, just like there was with the ICO boom, there will be hundreds of scammers coming out of the woodworks as well. Always do your own research just like you would any other investment you are considering. Some key things I look for in any type of an investment are: - Revenue – I want the company to show me their roadmap to revenue. A company cannot survive without revenue. - Innovation – Does their product or solution do something better or improve on the current solution in the market? - Upside growth potential – Is the upside growth potential 10X or more? The reward has to far outweigh the risk. Here's the thing... I may only be right in picking these plays 50% of the time, sometimes less. So, If the reward doesn’t outweigh the risk by at least 10X I could end up losing money... Therefore always do your own due diligence. Lastly, I need to use proper money management when investing in anything. Bet small to begin with and as momentum moves in your favor bet often. This strategy has worked well for me over the years and I believe it will work well for during the next Crypto wave. I’ll be talking more about Security Token Offerings in the days and weeks ahead… so keep an eye on your inbox for more. To your investing success, Cecil Robles By reading this, you agree to all of the following: You understand this to be an expression of opinions and not professional advice. You are solely responsible for the use of any content and hold BitcoinMentorClub.Com and all members and affiliates harmless in any event or claim. Required Risk Disclosure and Disclaimer: Past performance does not guarantee future results. Futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. 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