SimplyVital Health, a company that held an Initial Coin Offering (ICO) in 2017 and was able to get $6.3 million USD worth of Ethereum (ETH), was recently charged by the U. S. Securities and Exchange Commission (SEC).
During the sale, the company was able to raise the money by selling Health Nexus (HLTH) tokens. These tokens were offered via a “simple agreement for future tokens”, also known as SAFT. The idea was to use this model in order to reduce risks associated with regulators intervening in the sale.
The problem was that the SEC determined that the company, which never actually delivered the tokens, was breaking the Securities Act by not being registered. This prompted the SEC to issuing a cease and desist order.
Since then, the health company has decided to refund most of the investors related to the sale. Because of this and the fact that the company decided to accept the cease and desist order, the SEC decided not to impose any other kind of penalties to the case.
Going after SAFT sales is a trend that the SEC has started to follow since last year. According to the institution, this new approach will make the operations smoother.
The entity will start to consider that some tokens can be utilities and securities at the same time, too. In this case, it is clear that because a token is used as a utility tool this does not mean that it is impossible to consider it a security.
Author: Gabriel Machado
Many cryptos are all about a promise. Patientory is one of them. The crypto, which was created for a health app, is worth only a cent per PTOY token, but some of its executives believe that the project may be worth millions in the day.
Chrissa McFarlane, the CEO of the company, was recently interviewed by the crypto media outlet Coindesk. According to her, at the moment people are using the token only for small experiments, but she defended that the project may be worth millions in the future.
One of the main goals is to have data from healthcare providers in order to create a big network that will provide all range of health services for users.
At the moment, the project lacks clients, but it has a growing community with several contributors. The project is basically gearing up for a profitable future, its CEO affirms. According to her, the standards for interoperability of the company are getting better and, with time and testing, the network will finally be prepared to empower patients and to finally be profitable.
So far, Patientory was only able to get $12.4 million USD. Most of the money came from the Initial Coin Offering, which was held two years ago, but some came from venture capital later on. Most of the money has been used in the development of the platform and in related events aimed to bring awareness to the project.
Unfortunately, the future of this project is far from certain. While the management is sure that the product is innovative and will bring millions in profit, the truth is that most startups end up dying after a few years.
Author: Daniel W