Consensys, Crypto Invest Summit and Token Foundry Partner to Educate Cryptocurrency and Blockchain Investors, Builders and Developers

Crypto Invest Summit Introduces New Hyper-Focused Tracks in Partnership with ConsenSys and Token Foundry To Increase Technology Development and Adoption

LOS ANGELES, CA,  September 26, 2018 - Crypto Invest Summit, the West Coast's largest cryptocurrency and blockchain conference, has partnered with Token Foundry and ConsenSys to introduce their first ever Builders’ Track, the latest addition to their pre-existing line up of content-heavy breakout sessions. Each Track is designed to specialize in various highly sought-after topics with the goal of increasing usability, development, and collaboration.


Other breakout sessions include a Women in Crypto Track, Security Token Track, Crypto Trading Track and Healthcare Track. Attendees automatically get all-access passes with every Crypto Invest Summit or LA Blockchain Week ticket purchase; seating is limited on a first-come-first-serve basis.


In a joint statement, Alon Goren and Josef Holm, founders of Crypto Invest Summit and early-stage investment fund GHV said, “Each track is a focal point in helping us fulfill our mission of bringing sustainable investing in blockchain technologies to the masses. We brought on ConsenSys, Token Foundry, and numerous other prominent leaders to ensure our attendees maximize their time, value, and money while receiving the latest and most credible information in the marketplace.”

Token Foundry will join ConsenSys in leading the Builders’ Track with headlining topics discussing Token Economics, Token Market + Marketing Growth, The Brooklyn Project and Regulations, Security Tokens, Game Theory, and Crypto Adoption and Bootstrapping Network Effects.  The track will feature many key players within ConsenSys, Token Foundry and their network of companies.


“We are looking forward to introducing the thousands of attendees at Crypto Invest Summit to some of our top companies and best practices,” said Amanda Gutterman, CMO of ConsenSys.  “This is an exciting partnership for us and are excited to help program these tracks to be extremely productive and informative.”

ConsenSys, founded by Joseph Lubin, is a global formation of technologists and entrepreneurs building the infrastructure, applications, and practices that enable a decentralized world. They specialize in building core components, decentralized applications (DApps), enterprise solutions and various developer tools for blockchain ecosystems, focused primarily on Ethereum.

Token Foundry provides comprehensive infrastructure and advisory services to help best position new token economies for long term success. “We’re super excited to collaborate with Crypto Invest Summit and ConsenSys to curate this hyper-focused Track. Showing attendees how to develop long term success in decentralized networks has been our mission since day one, so deciding to collaborate on this track together was a no brainer,” said Mahoney Turnbull, Head of Community at Token Foundry.


About Crypto Invest Summit: Sold-out in 2017, CIS, comes back to the Los Angeles Convention Center on October 22nd. The summit brings together angel investors, venture capital investors, retail investors, family offices, real estate investors, startups / entrepreneurs, issuers, exchanges, broker-dealers, service providers, and members of the media. Previous headliners include: Tim Draper, Crystal Rose, Mance Harmon, Ran Neu-Ner, Marcus Lemonis, Robert Herjavec, David Siemer, Bill Barhydt, Scott Walker, Adam Draper, and Apolo Ohno. More information and press passes at https://cryptoinvestsummit.io

Who Killed The ICO?

There is a lot of talk about securities tokens, but they don’t apply for networks and applications. If you register a token as a security then you can’t use it in your application or you will then be trading securities every time someone wants to participate in your game or dating app, or whatever you’ve built.

A security token can’t be used for the intended purpose of 99% of the applications being built by ICOs. What this means is that there is no ‘out’ for companies to build applications that use tokens or coins internally and pre-sell them ahead of time. In much the same way you would pre-sell concert tickets or video games, companies pre-sell tokens to get people excited and start the marketing process as soon as possible.

A security token is useless for applications because of the rules involved in trading them. If most blockchain projects have token economics that require free trade of their in-game currency and reward system then most blockchain projects cannot use security tokens. Do you want to register your dating application as a securities trading platform to use your rewards token? Should only accredited investors be allowed to play your new game? This means there is no path forward for companies in the United States to sell tokens before their applications are built. This means for the majority of potential ICO projects that can be built there is no pre-sale allowed. If a company cannot pre-sale then it’s competitors who can in other countries will have an edge over the U.S..

At this point there is no path forward in the United States for ICOs for blockchain projects. They have essentially been killed. Registering a token as a security kills it’s use as a token in an application. It seems we may be able to have those tokens in applications, but we can’t pre-sell them. Their right to exist certainly isn’t guaranteed outside Wyoming. This means countries outside the U.S. have an advantage and there doesn’t seem to be a reason for a company to create a blockchain company in the United States because of the severe limitation.

Unless the SEC exempts tokens from securities when they are used as utilities even in pre-sale then the United States has missed the blockchain train. It’s like the dot com revolution has started and the United States has decided to sit this paradigm shift out.

A security token or a token that represents some kind of equity is a much less inspired concept. It is not going to create new industries like utility tokens. It represents a marginal shift and questionable improvement over ordinary digital stock certificates or bonds. Since you need to have all the owners registered in central databases the friction in trading them is almost the same as trading traditional stocks. These central databases will all need to have authority in a traditional yet still unknown way. After all of that is built there will be little new industry.

The real advantage of cryptocurrency and tokens are in utility and rewards. Many large companies in the United States, like Starbucks, Walmart, and CVS already use points and rewards systems. Utility tokens allow for more complex incentive software. This is where the real value of tokens comes into it’s own. Most companies building this software are now building this software outside the United States because they are unsure if the United States allows for utility tokens. We certainly have set a precedent that we don’t allow for pre-selling utility tokens. Starbucks reward points are utility tokens. Concert tickets are utility tokens. Vouchers for pre-sold video games are utility tokens.

The United States should allow for the pre-sale of utility tokens and explicitly exempt them from securities laws like Wyoming has done. Without this advantage we fall further and further behind in the blockchain revolution.

ICOs were invented for utility tokens. The largest ICOs around the world are still occurring to create some of the most powerful projects in the world and none of them are in the U.S. This is because there is no legal way forward to pre-sell a utility token and this was the reason for ICOs to exist. At first thought securities tokens seem like an answer. There are now securities tokens, but the limitations for using them will become more clear as time goes on. This is why blockchain companies did not adopt them. Only a small group of companies with stock-type tokens representing equity and commodities will exist in the United States. This limits the United States to a much smaller range of possibly new companies. What’s worse is that these will be the least innovative kinds of companies using traditional asset backed representation for their tokens and not the vast myriad of possibilities represented by utilities tokens.

The blockchain revolution has started and the United States has opted out. Companies trying to pre-sell utility tokens are not attempting to break securities laws or scam customers. They are using the new technology to create innovative new technologies before the rest of the world. They are creating new businesses in mass. Companies creating securities tokens are pushing old businesses onto new databases. We need the utility tokens to keep competitive edge in the United States, but we are on the wrong path. We have not allowed for a way forward for them. The lawyers need to take their teeth out of utility token technology if we are to see them grow. If people want to have securities tokens then why not have both? One does not preclude the other. By only allowing one very limited use of tokens and cryptocurrency in the United States there is no path forward for blockchain innovation.

Who did this? Did the investors ask for it? Lawyers always speak of protecting investors, but there was no petition to stop the sale of utility tokens. Who asked to kill the ICO? My bet is on the securities lawyers. When you are a hammer everything is a nail. But what is the expense of giving securities lawyers more paid work? Is the next google already going to be located outside the U.S.? Did we lose the Microsoft of blockchain already? Give us rules to continue to create business and innovate. Give us a path forward. How can we have utility tokens? How can we use this technology? Who killed the ICO?

Author - Nicholas Juntilla of ReceiptChain.io

What is Token Economics?

Our friends at Wiki define a token economy as behavioral modification through systematic reinforcement, which loosely means you do the right thing - you get a ‘token’ prize.  A token is simply an asset that can be exchanged for something else of value - material or immaterial.  

In the Blockchain & Cryptocurrency industry, we refer to tokens as digital assets within an ecosystem.  Tokens are used in relation to blockchain applications & platforms, and can be programmed for specific use-cases to attain desired goals.  Smart contracts govern how tokens are deployed; hence the term, ‘Programmable Money’ was born.

Economic systems based on blockchain technology are researched, designed, and implemented - and the applications inherently follow unique economic models utilizing cryptocurrencies…this, in a nutshell, is  what we call “Token Economics”.