💧The Lone Raindrops

SEC Chairman, Gary Gensler, & Blockchain Capital are in a league of their own


Gooood Morning Rainmakers,

This newsletter is brought to you by Realio, a blockchain-enabled issuer, fund manager, and technology provider specializing in real estate private equity.

Without further ado, it's time to…

Get liquid 🌊


View more live-trading data here.


The SEC Is Officially Our Ally 🙏

For years and years, the cryptocurrency and blockchain industry has been waiting for the US regulatory bodies to clearly define and regulate blockchain-based assets and securities.

Well Rainmakers, it comes with great pleasure to announce we have officially taken one giant leap forward for cryptokind.

One of the main reasons we haven't received regulatory clarity is because the US is one of the most stringent jurisdictions when it comes to securities law.

For those of you who do not know, Gary Gensler was officially sworn in is as the next SEC Chairman.

But this isn't just any SEC Chairman…

This man is a living legend.

Let's take a glance at his resume:

  • Former chairman of the U.S. Commodity Futures Trading Commission

  • New York Fed Fintech Advisory Group

  • Completed 9 marathons and even a 50-mile marathon 🤯

  • Professor at MIT who taught “Blockchain and Money”

  • Senior Advisor to the MIT Media Lab Digital Currency Initiative

As you can see, he is well-versed in the financial industry.

But, he also is an expert in…

Crypto.

Blockchain.

and most importantly, security tokens.

Normally, SEC Chairmen are by the book and don't usually operate too far out of the norm.

But Gensler is different… very different.

You see, Gary has ran not 1, not 5, but 9 marathons and even completed a 50-miler!

He's an uncommon breed.

Us blockchain people respect people who walk a different path.

Why?

Because that's what rainmakers do.

Here's a recent quote from Gary:

“…these innovations have been a catalyst for change. Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but also they’ve also raised new issues of investor protection that we still need to attend to.”

At the end of the day, one of the core objectives of the SEC is to protect investors.

I believe this quote accurately foreshadows the direction we are heading, in regard to regulatory clarity.

The only way security tokens and cryptocurrencies will prevail is if we work alongside regulators, and that's what Gensler is for us…

An ally.


BCAP Has No CAP 🧢

Similar to how Gary is a different breed, Blockchain Capital is as well.

Blockchain Capital (BCAP), a venture capital fund, was the first-ever security token to be created.

Founded in 2013, BCAP is a VC fund that invests in blockchain-based companies, as well as a myriad of different cryptocurrencies.

At the time of the primary raise, the NAV was $1.00/share.

Let's get basic: NAV, AKA net asset value is calculated like this:

NAV = (Assets - Liabilities) / Total number of outstanding shares.

It tells us what the value of the fund is per share at any point in time.

Every quarter they release a report detailing the value of the fund asset by asset.

As of last week, they officially reported the NAV/share was $23.83 at the end of Q1.

That's an increase of 2,283% since inception!

Unfortunately for BCAP, Dogecoin was not one of the cryptocurrencies on their balance sheet 😂

However, they have nothing to complain about.

The fund's value has skyrocketed for these 3 main reasons:

  • Filecoin investment return of 21307.83%

  • Coinbase Series C/Common Stock investment return of 1300.27%

  • Kraken Series A investment return of 1100% - also rumored to do a direct-listing IPO IN 2022, similar to what Coinbase just did

These three investments account for 50% of the overall portfolio!

If you want to see their entire portfolio, Antoine Tardif of Securities.io has a great article detailing this.

As I alluded to earlier, when they initially raised money for the investment fund, they tokenized 20% of it.

The tokenized shares are live-trading on the secondary market at $15.50, while the NAV of the fund is $23.83.

That means that the token is trading at a discount relative to what the firm has valued the BCAP portfolio to be worth.

Track the live-trading data here to see where it goes from here!


What else is making it rain ☔️

Fun fact of the week 🤯

Regulation A+ and Regulation CF are the only private securities exemptions that allow you to raise capital from the retail audience

  • Reg CF allows up to $5M & Reg A+ allows up to $75M


Game of the Week 🎯

“2 Headlines and a Lie!”

  • Florida Woman Survives Being Hit By Flying Turtle

  • Warren Buffett Invests In Bitcoin

  • American Airlines Removes Passenger Who Won't Stop Doing Pull-Ups

Reply to this email with what you think is the false headline!

If you are right, we will shout you out on our socials 💯


Connect with us ☎️


Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗‍♀️

For any questions, suggestions, etc - email me at Jonah@stomarket.com and follow me on Twitter!


Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.