Quote from: wiser on December 28, 2017, 06:24:21 AM

Quote from: Dyna on December 28, 2017, 05:02:54 AM

That is a valid question. If we use the 10,000,000 DNotes as a token sale to raise money for DNotes Global before being qualified by the SEC as registered or exempted that would be illegal under U.S. security laws. I would not be surprised that we need to file a disclosure statement with the SEC in the future if we intent to sell any of the DNotes.

Would it make any difference how you were to sell those DNotes? For example, would dumping them on an exchange at market price be any different legally than putting them up for sale directly to investors, most likely for fiat money?

I'm thinking that putting them up on an exchange would be legal, though not recommended at this time. You own the coins. You have the right to sell them.

But promoting the coin directly to investors as something that could be profitable would then qualify the coin as a security which means you'd better be properly registered and vetted first.

What if you put the coins up on an exchange *and* also promote it?

Wiser, thank you for helping us to think through this. The Mini-IPO will only be selling up to 10,000,000 DNotes Global, Incs. shares at a fixed price of $5 per share, allowing us to raise up to $50 million using Reg. A+ Mini-IPO Title IV Tier 2. No money can be accepted until our registration filing is qualified by the SEC. It is a long and expensive process but far less costly and burdensome than the traditional IPO. We expect it to take six months at a cost of $500,000.

We have no intension of selling the DNotes any time soon. There are many reasons for the ownership. Strategically, it gives DNotes Global strong self-interest to make DNotes an immense success. Because of that it creates shareholder value for DNotes Global and stakeholder value for DNotes. And since DNotes own 25% of DNotes Global (subject to dilution) a more valuable DNotes Global also makes DNotes the digital currency more valuable with more intrinsic value in support of it.

The business models that we have been building are simply amazing. They are viable for our industry to follow one day, though not easy to replicate.

The whole DNotes model is extremely complex in many respects. As we attempt to merge the old world of centralized control with the leaderless decentralized new world there are many challenges we seek to overcome. We intent to be as transparent as possible and trust that we all can learn together.

Its going to be a very busy day for me. I will check in when I have a chance. Have a wonderful day.