Subscribe!
Bite Token Is “100% A Security Token” & a Good Example of an SEC Compliant ICO
Share this post
Causam eXchange, Inc., (Causam) a privately-held advanced energy settlements company, launched its presale on March 8, 2018 pursuant to Rule 506(c) of Regulation D. The company plans to develop the first Blockchain Instrument for Transferable Equity (BITE), an equity security that is tokenized in a smart contract executed on the Ethereum Network. The smart digital contracts replace today’s paper-based power purchase agreement (PPAs) and their terms are in a standardized form which allows them to be more easily understood and transferable to other parties, enabling market participants to easily buy and sell contracts. According to Causam’s website, the general offering “begins soon.”
Is It A Security Or Utility Token? It is 100% a Security Token and the Company relied on Rule 506(c)
Joe Forbes, Jr., founder and CEO of Causam, stated in a press release that the decision to call the BITE token “a 100% security” is a direct result of the SEC’s warnings. Joe Forbes, Jr. stated that “ICOs are broken” and seems to prefer the term “Tokenized Security Offering.” The company’s decision to rely on Rule 506(c) means that the offering is exempt from registration, subject to a holding period and only open to accredited investors who must comply with anti-money laundering and know-your-customer rules. The press release indicates that Causam’s disclosures to investors about the business and investors’ rights as holders of BITE tokens are far more detailed than many other white papers being used for other blockchain related offerings. And I agree.
Why is the energy market a perfect use case for blockchain technology? Just a few reasons why.
Blockchain technology has the potential to create a more efficient and modernized energy grid by addressing issues such as the lack of energy data access, high transaction costs in the power sector and lack of cybersecurity on the energy grid.
Lack of Data Access: According to the White Paper, large centralized utilities control the access to and content of end customers’ energy data. When a user lacks access to energy data, that lack of transparency prevents the user from understanding how to reduce electricity usage and minimize costs by either changing behavior, shifting to a provider or installing new on-site generation. Causam plans to address this problem by providing secure access to an end customer’s own data and real-time data from the electric power grid, as well as access to the electric power markets. This would give a user the ability to have control over electricity costs, its availability and impacts on the environment.
High Transaction Costs: Causam’s blockchain-based platform, EnergyNet, would leverage blockchain technology to eliminate intermediaries, such as brokers, to allow market participants to transact directly with each other when buying, selling or trading assets and services. Causam, however, will not enter a market that requires that EnergyNet be registered as a market participant for various reasons.
Lack of Cybersecurity: There is no need to belabor the point about the importance of cybersecurity in the power sector and the potential for attacks by bad actors. Causam believes the sector will benefit from the distributed ledger afforded by blockchain technology which will provide greater transparency in electricity transactions and more “eyes” on an abundance of accessible energy data.
In conclusion, there has been an increasing trend in companies relying on Rule 506(c). This blog should not be construed as investment advice and investors should conduct due diligence before investing in ICOs. This means investors should take a critical look at the management team and their prior engagements, the community that supports the project, the communication between the company and investors, whether the blockchain technology makes sense, when and how the tokens will be distributed, whether the offering has an unlimited or hard cap on tokens, and the whitepaper, among other things.
Hi there! Would you mind if I share your blog with my zynga group?
There’s a lot of folks that I think would really appreciate
your content. Please let me know. Thank you
Thanks! Please share!
Pretty! This has been an extremely wonderful article.
Many thanks for supplying this information.
Thanks for reading!
Howdy would you mind letting me know which webhost you’re utilizing?
I’ve loaded your blog in 3 completely different browsers and I must say this blog loads a
lot quicker then most. Can you suggest a good
internet hosting provider at a reasonable price?
Thanks, I appreciate it!
I was suggested this website through my cousin. I am now not positive whether
or not this post is written by means of him as no one else recognize such certain about
my difficulty. You are incredible! Thanks!
Thanks for reading!
Hello there, just became alert to your blog through
Google, and found that it’s truly informative.
I am going to watch out for brussels. I will appreciate if you continue this in future.
A lot of people will be benefited from your writing. Cheers!
Thanks for reading!
I am regular reader, how are you everybody?
This paragraph posted at this web page is really
pleasant.
I am no longer positive the place you are getting your information, but good topic.
I must spend a while learning more or figuring out more.
Thank you for wonderful info I was looking for this info for my mission.
albenza price
sildalis
cost of generic acyclovir
If some one desires to be updated with hottest technologies
therefore he must be go to see this web page
and be up to date daily.
Thank you and please stop by again!
Awesome post.
Thank you and please stop by again!
Magnificent web site. Plenty of helpful info here. I’m sending it to a few pals ans additionally sharing in delicious. And naturally, thank you in your effort!
I was suggested this blog through my cousin. I’m no longer positive whether or not this submit is written by way of him as nobody else recognise such certain approximately my difficulty. You’re amazing! Thanks!
Greetings! I’ve been following your weblog for some time now and finally got the bravery to go ahead and give you a shout out from Houston Texas! Just wanted to tell you keep up the great job!
This text is worth everyone’s attention. How can I find out more?
Hello there! This article could not be written much better! Going through this article reminds me of my previous roommate! He constantly kept preaching about this. I will send this article to him. Pretty sure he’s going to have a good read. I appreciate you for sharing!
I got this website from my friend who told me concerning this site and now this time I am browsing this website and reading very informative posts here.
I think this is among the most important information for me. And i’m glad reading your article. But should remark on some general things, The site style is great, the articles is really nice : D. Good job, cheers