The Week In Bitcoin - Issue #60: The Appcoin Debate

The Appcoin DebateOver the past few months, around $250m has been raised by a few companies in the bl
The Week In Bitcoin
The Week In Bitcoin - Issue #60: The Appcoin Debate
By The Week In Bitcoin • Issue #2
The Appcoin Debate
Over the past few months, around $250m has been raised by a few companies in the blockchain space. However, none of that has been via the traditional VC funding model. Instead, these entities have raised money by creating their own ‘appcoins’ through a crowdfunding sale on a blockchain.
Old school Bitcoiners might not be all that alarmed by this, mainly because they’ll remember the Bitcoin 2.0 days when a new altcoin was released daily. If you don’t, the altcoin cycle went something like this: release altcoin, publicise it on Reddit, pump it, then dump it and start again. 
Some take the view that appcoins are a new way for companies to bootstrap - getting funding Kickstarter-style for their venture as 'equity’ in the entity/project/hobby. While others (me included) take the view that a number of these companies are issuing securities in breach of securities law in some jurisdictions.
I’m all for experimentation, however, there are good reasons the law carves out certain types of financial instruments as requiring formal disclosures and/or regulatory clearances before they can be hawked to retail investors. Generally, this is to protect market integrity and consumers from fraudsters. Given some of the recent appcoin 'issuances’ this reasoning seems to ring truer than ever. 
This week I’ve included some articles on the the appcoin debate - let me know what you think. 
— Alan Tsen, @alantsen 👊💯
Ps. If you like what I’m doing here please feel free to share it on your favourite social media network. Here are some links I prepared earlier - Facebook, Twitter, LinkedIn. Also, it’d be great if you forwarded this newsletter to a friend you think might enjoy it.

News This Week
The Future Of Financial Infrastructure: An Ambitious Look At How Blockchain Can Reshape Financial Services
The World Economic Forum report on Blockchain tech and how it might reshape banking.
Unbalkanizing The Blockchain Ecosystem: Emergence Of Semantic Blockchain
The interchange of homogeneous data facilitated by Blockchain technologies might be the catalyst needed to spur into reality the ideas of the dormant Semantic Web.
Decentralisation And The Future of Ridesharing
Around the world, emerging technologies are accelerating the transfer of power from top-down, centralized institutions to distributed networks driven by voluntary, peer-to-peer collaboration.
Here's What The Bitcoin Naysayers Get Wrong
Bitcoin skeptics continue to misunderstand a technology that could forever change the way financial services operate. Here are four common – and incorrect – beliefs on why bitcoin will fail.
I opened my first checking account in 1997. My dad drove me to our local credit union (I was only 15) where I showed my student ID and we both signed the application.
[Video] 402: Payment Required. Micropayments for IoT
What if you could provide access to sensor data in exchange for small amounts of payment?
Startups working with blockchain and bitcoin technology around the world raised close to $300 million (£231.2 million) in funding in the first 6 months of the year, according to Juniper Research.
The Appcoin Debate
Over the last few years over $1bn has been invested in digital currency startups from venture capital firms and institutional investors.
Crypto Tokens and the Coming Age of Protocol Innovation HTTP as the underlying protocol of the web allows for decentralized publishing. Anyone can operate a web server and publish their own content….
Companies we’ve never heard of are IPO’ing before our very eyes. Instead of ringing the IPO bell after multiple years of operations, they…
Yesterday, I was having lunch with Tierion’s Wayne Vaughan. At one point, our conversation turned to a rather distressing recent development we’d both noticed in the “blockchain” space. 
From Cold Storage
This post will explore how transactions will be validated using distributed ledger technology. It will also provide some use cases around who those transaction validators may be and what that would look like.
Let it be known to the entire world that on July 20th, 2016, at block 1,920,000, we as a community of sovereign individuals stood united by a common vision to continue the original Ethereum blockchain that is truly free from censorship, fraud or third party interference. In realizing that the blockchain represents absolute truth, we stand by it, supporting its immutability and its future. 
Below is a summary and select slides of Adam Ludwin’s keynote address to a gathering of ~100 central bankers and regulators from around the world at the Federal Reserve in Washington D.C., jointly hosted by the IMF and World Bank.
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