Disclaimer: This article is for educational purposes. Only accredited investors may participate in the DNotes Global Incorporated Reg. D 506(c) fundraising round. Prospective investors must register at https://investors.dnotesglobal.com/ and undergo an extensive screening process to ensure they meet SEC guidelines. If you are not an accredited investor you will have to wait until the next round of fundraising, which is DNotes Global, Inc.’s Reg. A+ Mini IPO under Title IV Tier 2.
Reg. D 506(c) vs. ICO
Regulation D 506(c):
- Unlimited amount of capital can be raised.
- Verifies investors have adequate disposable income to financially withstand total loss.
- Legal securities offering filed with the SEC via Form D. The public can view any company’s form D filing on the SEC website https://www.sec.gov/edgar/searchedgar/companysearch.html.
- Restricted securities that cannot be sold for six months or one year without registering them.
- Updated rules allow for public advertisement with proper disclaimers.
- Investor must receive adequate disclosure via private placement memorandum.
- No investor protections or screening to verify that investors are financially capable of withstanding total loss.
- No registration or reporting requirements.
- All ICO’s operate as securities, but none have registered as such. Therefore they are all operating illegitimately.
- ICO could be a useful tool for capital formation, but since none of the ICO’s that exist today have registered as securities, their negligence has put all investment capital they have collected in jeopardy.
- Many ICOs misrepresent illegal securities through deceptive advertising, or conduct aggressive internet fraud campaigns, which are both forms of securities fraud. Complicit advertisers of these illegal securities may also be guilty of securities fraud.
- Can be sold immediately after purchase.
- Conducting an illegitimate ICO will effectively blacklist these companies from conducting larger public offerings through the proper legal channels.