• Equity (RIC)
  • Funding Portals
  • Blockchain

Do you think DAOs could replace the funding portals and investment crowdfunding?

1 Answer, 2 Replies
Elizabeth Carter
May 31,
Elizabeth Carter  replied:

Yes to funding portals (and probably should) and no to replacing investment crowdfunding. Rather, DAOs will most likely use investment crowdfunding to fund its projects.

3   
Brian Christie
Jun 6,
Brian Christie  replied:

It seems that Tennessee is now joining Wyoming as two states that allow DAOs to be formed as LLCs in their states.

https://www.crowdfundinsider.com/2022/05/191038-tennessee-follows-wyoming-to-become-second-state-to-recognize-daos/

If this is going to be a continued trend, then perhaps the CfPA could help issuers look at the pros and cons of using a DAO vs a FINRA approved investment portal?  

1   
Elizabeth Carter
Jun 8,
Elizabeth Carter  replied:

Well, those individuals raising capital - even through a DAO - will need to find an exemption for that capital raise (i.e. Reg A+, Reg D, or Reg CF). However, if they raise capital through Reg CF - then a regulated crowdfunding portal will still be needed. Thus, an additional question could be: can a registered crowdfunding portal be structured as a DAO?

2