AngelList Spin-Off ‘Republic’ Releases Its Very Own Revenue-Share Token
Many of our readers might be well aware of the fact that New York-based equity crowdfunding platform ‘Republic’ is one of the first firms in the world to offer its customers with an “all-in-one fundraising solution”.
However, it now appears as though Republic has gone a step further and created a blockchain-based token that allows anyone to “share in the success of the companies that it helps raise money for”.
At this point in the article, it should be pointed out that Republic was launched in 2016 and it is one of the few firms operating within the crypto arena to possesses a FINRA-license — which allows it to help early-stage companies raise capital from a variety of different financial avenues.
So What’s Being Offered This Time Around?
As per an all-new press-release available on the firm's official website, Republic is now offering interested individuals with the chance to procure a piece of the company’s profits completely free of cost — through its native token offering called “Note”.
From the 8th of this month, Republic will start distributing its “Note digital token” for free to anyone who signs up on the company’s official website.
On the subject, Republic MD Ryan Myint elaborated by saying:
“Notes are earned through specific actions and provide users with a bunch of perks, such as early access to investment opportunities, events, and stuff like that”.
In this regard, we can see that by simply registering an account on Republic’s online portal users can obtain their first 10 Note coins free of cost. In the same vein, a start-up referral can earn an individual anywhere upto 1,500 Notes.
Myint then went on to say:
“But the cool part here is. Republic aims to eventually link the Note to Republic’s equity interest in every company that raises on Republic, which allows Note holders to have a stake in the potential upside on Republic’s entire portfolio.”
As a result of this novel business model, every successful fundraiser conducted by the firm will see percentage-based profits being distributed amongst those who possess the firms’ native Note tokens.
More On The Matter
When asked by an interviewer if Republic’s Note coin was similar to an STO (security token offering), Myint said that any such clarifications would be doled out in due time. However, he did say that all of the financial developments that were being carried out by his company were completely in line with existing federal securities laws and regulations.
Also, from a historical standpoint, we can see that everything that Republic has done up until now has laid in accordance with the guidelines set forth by the US SEC. To this effect, we can even see that the firm is one of the only blockchain entities operating within North America that has the SEC’s clearance to sell digital tokens to non-accredited US investors.
Last but not least, Republic's in-house staff also boasts of a team of four lawyers that is headed by established securities litigator Kendrick Nguyen.
In closing out this piece, it should be pointed out that there currently exists an explicit disclaimer at the bottom of Republic’s website which could be a cause of concern for some people.
The disclaimer reads as follows:
“Although the Note may not at this time constitute a ‘security’ under our view of applicable laws and regulations, Republic is conforming to the standards of testing the waters under Regulation A of the Securities Act of 1933, as amended (“the Act”). This process allows companies to determine whether there may be interest in an eventual offering of its securities.”
Last but not least, the company has also made it clear that there are no assurances when it comes to the future performance of its latest digital offering. With that being said, if this entire experiment is indeed successful, we could see the dawn of a new financial era within the global crypto arena.