RegA+ Digital Securities

Speakers

Oscar Jofre

CEO and Co-Founder

KoreConX

Oscar Jofre

CEO and Co-Founder

Oscar is currently one of the Top 10 Global Thought Leaders in Equity Crowdfunding, a Top 5 Fintech Influencer, Top 10 Blockchain and a Top 50 InsureTech. He has published an eBook that has been downloaded in over 20 countries, and been distributed by partners worldwide. Oscar is a featured speaker on Fintech, regulated, equity crowdfunding, compliance, shareholder management, investor relations, and transparency in the USA, Australia, UK, Germany, France, Netherlands, Canada, Singapore, Indonesia and China. He speaks to audiences covering alternative finance, RegTech, insurance, banking, legal, and crowdfunding. Oscar also advises the world’s leading research, accounting, law firms and insurance companies on the impact Fintech, RegTech, LegalTech, InsurTech and OrgTech is having in their business.

Oscar Jofre  00:01

Well, good afternoon, and good morning. Good evening, wherever you are in the world. Thank you once again to joining us. And the KoreSummit Series today an exciting topic digital security. For all of you who are new, my name is Oscar Jofre. And one of the cofounders of KoreConX, we are so excited today to have this discussion, because I’m sure all of you are seeing all the great news out there, by the SEC, lots of different discussions on different topics related to digital security, security tokens, stable coins, and NFTs. As you can tell, the discussion continues. And today, you are going to have the opportunity to listen to some of the top leaders, experts in these areas. But always with the blanket of we do things fully compliantly, we’re here to guide you the right way, with the right tools and education through these individuals to make sure that you navigate through these times when there’s sometimes a bit of ambiguity, but there really isn’t if you really follow the regulations. And that’s our philosophy at KoreConX since the day we started. And we begin the KoreSummit to bring education to everyone, and to do it in such a way that we would always do things fully compliant. And today, you’re going to begin that journey on the digital securities. Eventually this will grow into much bigger event on Saturday kind of gives you a little bit of snippet into this sector that is now evolving the realities of secondary market trading are here, which is another major step. But let me walk you through what you’re about to expect in the few hours. So first of all, let me say this, this event is being done differently than we’ve done others. And because we’ve heard your comments, I wanted to say thank you to all of you who have been gracious enough for attending them, providing feedback, I know that it may have seen that we weren’t listening, we were. You wanted more time with the speakers, we understand that. We believe that we’ve been able to carbonize what we believe in number one, we want to provide these events at no cost, we want to provide this event with no sponsorship. So you get the very best of the best with no compromise. And we wanted to make sure we could find an environment where you could interact with the speakers during the breaks that we have put together. Now, this one event, this particular event, there’s going to be set to break now we may get it right, we may get it wrong, but our team is going to ask you how we can do to make it better. And to be able to make sure that everybody has an opportunity to speak to the speakers that are having today. Don’t forget that you can always go to KoreSummit.io You can click on speakers there, you will find all the speakers alphabetically, or you can find them by their specialty, legal investor acquisition, FINRA broker dealer, secondary ATS, you can find them and when you do, you’ll get their bio, you’ll get their email address their LinkedIn link, we want to make it as easy as possible for you to reach these experts. So you can begin the journey engagement of you know, raising capital for your company. So this new event management system we’re using today is going to be a little bit bumpy. And we do sincerely apologize for that. But the idea is to make it fun, interactive, we’re going to have games, we’re even thinking of bringing a magician, online magician if you can believe it. So let us not end today marks obviously, the the second last KoreSummit of 2021. Thanks to you. We have now done over 100 of them in 2021. Thank you. Thank you, thank you. So today’s digital securities. And then of course in December the second we have dare to dream. That’s right, ladies and gentlemen, dare to dream that is the new door we’re opening. 2022 is just around the corner. It’s exciting times for everyone using these amazing regulations that were part of created under the Jobs Act.  But today, it’s about digital securities. Digital securities has been you know the terminology you keep hearing often with this term tokenization. What is tokenization? What is a stable coin and NFT so obviously this is a whole new world that’s entered into the world of securities, offering securities in a different way. What does that mean? Well, there was a time, if you all may recall, when we invested in a company, we got a piece of paper with our name on it, that was a certificate, it told us, we are owners in this company, we would then take that to our lawyer, or to our auditor, or to the bank, or put it in some safety box. And that would have our ownership. That’s that was then how long ago was that? That was 10 years ago, 10 years ago, and there are still companies issuing paper certificates. And then of course, with the introduction of the Jobs Act, we went digital. So what does that mean? Well, it’s the same information here. But now it’s in a digital form, meaning that the representation, all the data points, you bought the shares, certificate number on this day, and so on. So it was put in what we call a ledger. And the Ledger had to be maintained either by the company or a third party, SEC registered transfer agent, simple, no paper, wow. Now less trees we got to cut down in order to do that. So securities is actually eco friendly. And then in 2016, Blockchain, everybody saw companies raising hundreds of millions of dollars in offering these things called ICOs. Tokenization. I’m going to tokenize that, and I’m going to tokenize it with this, and we’re going to do all these wonderful things. That was a great time. I remembered it, I remember quite well, I remembered it because I came out. And many of us came out I wasn’t the only one and indicating that these were actually securities. And shortly thereafter, I was hacked. Thank you, for all of you. I was hacked, I was hacked because I it seemed like I was coming from the world of establishment establishment says, for digital securities and security tokens. No, it’s wrong. It’s a new way. And it’s not that I didn’t love blockchain. I love blockchain. Blockchain is going to transform the private capital markets, mark my words, I’ve been saying it for the last four or five years. And I’m re iterating. again today. It is transforming it already. You’re going to hear about that today. But what was really interesting about blockchain is that it’s great to have a piece of technology. But if you do not understand the problem, and if you don’t understand all the stakeholders that are part of it, if you don’t understand why they’re there, and you think you can replace them with technology, then you really didn’t understand how all of it work. And eventually people get into trouble. And of course, that’s what we saw. Does that mean that blockchain itself is wrong? No, it’s not. It means that the first iteration of it meant that they didn’t have the coding correctly. Now, it’s back on the block. everybody now knows that we need to work with FINRA broker dealers, because why they have a fiduciary duty to do a number of things, that is going to make it easier and better for everyone. They do due diligence on the company. And of course, they do KYC ID AML anti money laundering on the investors and suitability to protect everyone to make sure the investments suitable. And we need registered transfer agents to be managing the ledger of the company. Now, can this ledger be on blockchain? And the answer is yes. And what is the power of that ledger? Being on blockchain? It’s now immutable. So what is this immutable? No, there’s a share certificate. There it is. There’s a piece of paper and what would a company have to do? In the old days, when they had a piece of paper? They would have to go to their lawyer, what would the lawyer do what happened auto know it ripped up, then they would need to pass a resolution, you know, indicate that that certificate got burned somehow, if they could, and get it replaced? Well, you can see my name. Now, the ledger, the ledger, somebody can go in there and tamper with it, right? Somebody can go in there. Um, you know, founders do this, right? They go in there. My founder had 100,000 shares, I’m really mad at him today, or boom, it’s now 10,000 shares. immutability means when you bought those securities, and it goes on the chain, nobody could ever raise you. Any investor putting in $50 $100 $1,000 100, whatever dollar amount you’re putting into a company who then puts this information on a chain in a in a protected chain to protect both your privacy and the privacy of the company and fully compliantly. Boom, we now have a winner. Because now what we’ve done, we made this security, liquid, and fluidly. What does that mean? fluidly. It allows the the the information to move. What people don’t realize in the private capital markets. It’s huge guys. It is 450 million people worldwide. companies worldwide 32 million just in the United States. So imagine how many shareholders are out there holding security and it’s hard to move it from one person to the other. You got to fill up PDF documents. You got to go through this and you got to go through all that. can technology do that? Yes. the right technology can. And that’s why security tokens, and tokenization is so powerful, because it can fundamentally change. Why? Because in June of this year, May 2021, a new door open for the private capital markets, and you’re going to hear about that day secondary market trading. So in order for a person, just imagine this for a moment, you want $100 of a company shares $100. how cost effective? Can it be for that individual to go to a secondary market? If it had to be done manually? It wasn’t. That’s why when you’ve been hearing about secondary market and tokenization, up until now, it’s always about $50,000 trades, $100,000 trades, you don’t hear about Joe Smith, trading $100, because it didn’t exist. Now it’s here. That’s right. Today, an investor owning as low as $5 can go directly directly to a registered ATS, which is registered to FINRA and the SEC and trade and do the settlement and update the company real the company’s cap table real time. And at no way, did it miss not having the transfer agent did the SMC register, ATS all the regulated components were there. And it all happened on a protected chain. That’s what’s so exciting. And because you can do a tokenization of security. Of course, now you can explore a stable coin. So stable coin, you’re going to hear speakers today, Louis Kahn, one of the leading authorities in this way, Lewis and I may not always agree on things. And that’s the wonderful thing. Because there are three different types of stable coins you can have out there. It can be a security, it can be a commodity or derivative. I’m not, we’re not here to indicate which one is better it there are different cases for each one. But the important thing is, if you do it fully compliantly you’re not going to get the knock knock from the SEC. And that’s really what this is about NF T’s same thing, non fungible tokens. I remember when Dr. Kiran Garimela in our company, and I published the paper and we were talking to people up on non fungible tokens way back in 2015 2016. They go Oh, no, no, no it but a security just so you all know, security can only be a non fungible token. Isn’t that ironic? No. So the structure is here, to create an NFT, fully compliantly to meet all your regulatory obligations. And that’s what you’re going to experience today, the journey you’re going to go through today, it’s going to go through like this. First, we’re going to talk about the preparations, you’re going to meet the broker dealers, you’re going to meet the lawyers who’ve been there done that and can tell you about the regulations you can use to deploy any of these activity, then there’s going to be a panel of individuals that are going to talk about investor outreach, investor acquisition, these are experts, companies that understand that when you are selling a security, it’s much different than when you’re marketing a product just per se, but there’s a combination of the two, then we’re going to have some great discussion around what is the NFT devalues of there, and the stable coin and what’s going on the commotion. And then we’re going to tell you, what is it like when you’re live? What’s going on? What’s happening, what’s the transfer agent doing? What’s, what’s the escrow provided, and wire to do all these pieces needed. And then the deals close secondary market trading. And we have a little bit of surprise for you. I’m very, for me, today marks another great addition to our KoreSummit. Today, another door opens in this chapter, when secondary market door trading opened up, we opened up something else as well. We now need shareholder communications. That’s right, private companies. We’ve not thought of this. We’re not up to blame for it. It’s just that there wasn’t a need. But now you need to think about it. And today we’re gonna have a great panel of speakers in there who are already doing it come bright, great insight and strategy but more importantly to understand what is it why is it important today and it wasn’t important before so today you are going to enjoy the the journey of meeting all our speakers. Look, it’s going to be bumpy as I told you that we’re gonna have a little bit of hiccups here I see that you know, I already see the value already. I can see there’s there’s people there didn’t even have that visibility. today. I’m going to ask my my colleagues to bring in the first panel for our journey this afternoon. We call this panel the preparation. The preparation is an important one. We believe that if you do not start in this area when you’re one to engage to do security token, digital security, a stable coin, or an NFT, fully compliantly, you’re moving in the wrong direction. And it starts with these types of individuals that are going to have a great discussion with you. And as always, we’re going to make it interactively as well with you. So they can come in. So Carolina, can we ask Paul, or Marty, Andrew, and David, to come in, please. So we’re just waiting for them to come in. And now, while they’re coming in, I will indicate that the I will, I understand what I need to do right now. As I said, I will end this session, so we can begin the next session. So there’s going to be just a slight pause here, but we do this. Thank you, again, have a great time. I mean it and by the way, every session is being recorded. So it will be also available. We will email that all that to all of you. So you can, you know, watch it again and again and get that great education. Thank you again, looking forward to seeing you again shortly.

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