HiFi sells shares of upcoming crypto projects through nfts
Please add to this as it is a work in progress cheers community
HiFi lets people buy shares of upcoming crypto projects through fractional prices of NFTs and will also bring tvl plus it could also be for real-world projects as well
HiFi will be a place for new projects to find investors and a place for people to buy shares through the HiFi protocol
⦁ bring tvl to the hifi protocol
⦁ more projects for Hifi Ecosystem
⦁ being the first to do this
⦁ need to make sure the are legit project for the HiFi consumer
⦁ if the project doesent make it you lose your funds
say I am about to start a crypto project or real-world project I want to sell 50% of the company’s shares to fund the idea of the project I would apply to HiFi and they would add us to their protocol and then people could buy my shares
how to determine its value on the chain
how to combine it with the HiFi protocol
your basically describing a Launchpad, like a centralized version of Paid Network’s Ignition or a decentralized version like Bounce Finance or Aelin. In general, theres lots of uncertainty regarding these types of sales in a company direct to consumers. Specifically around if USA customers bought, then even if you were a project based in Japan, written in Japanese and hosted locally within the borders of Japan, you (the project) would have broken US securities laws and would face fines and/or imprisonment.
I think as a USA based DAO, this idea would be a no-go, due to current local regulations. If the SEC ever provide guidance on digital assets, then certainly worth a revisit.
There are some additional CONS:
- Limited information available on many early stage projects, making it difficult to evaluate their potential success
- Investment in early stage projects carries a high level of risk and may not be suitable for all investors
- Need for proper due diligence and risk assessment before investing in any project through the protocol
Here is a list of some regulatory issues and proposals that the U.S. Securities and Exchange Commission (SEC) has addressed or considered in relation to DeFi protocols and NFTs:
Classification of DeFi tokens as securities: The SEC has taken action against some DeFi projects that it has determined have issued unregistered securities in the form of tokens. The SEC has argued that these tokens are securities because they are being sold to investors with the expectation of earning a profit through the efforts of the DeFi project’s founders or other third parties.
Regulatory guidance for DeFi projects: In 2022, the SEC released a statement providing guidance on how it will approach the regulation of DeFi projects. The statement made it clear that the SEC will apply existing securities laws to DeFi projects on a case-by-case basis, depending on the specific facts and circumstances of each project.
Regulation of NFTs: The SEC has stated that it will apply existing securities laws to NFTs on a case-by-case basis, depending on the specific facts and circumstances of each NFT. In some cases, the SEC has determined that certain NFTs are securities and have taken action against the projects issuing them.
Proposals for regulating DeFi and NFTs: The SEC has not made any specific proposals for regulating DeFi or NFTs at this time. However, the agency has stated that it is actively monitoring developments in these areas and may consider regulatory action if necessary.
Enforcement actions against DeFi and NFT projects: The SEC has taken enforcement actions against several DeFi and NFT projects that it has determined have violated federal securities laws. These actions have included issuing cease and desist orders, imposing fines, and requiring the projects to register their tokens as securities.
This is great information, thanks @Josue !
Hifi team has a great knowledge and understanding of the law. It shows that research and due diligence was made to understand and navigate regulatory territories of the SEC.
This ensure that Hifi remains SEC compliant which is great news for token holders and participants of the Hifi Ecosystem.