Based on a new development, I am reiterating my recommendation to purchase StartEngine’s shares.   The shares were originally recommended in November of 2017. StartEngine’s shares should now be purchased aggressively for two reasons:

  • Has emerged as a first mover provider of the regulated infrastructure that is desperately needed by the cryptocurrency community.   
  • Only $225,000 remaining available from its $5 million Regulation A+ offering which has been underway since October 2017.

From my researching the issues that the cryptocurrency community is now facing, I discovered that there is a huge need for regulated infrastructure providers.  Because of scams and illicit activities including price manipulation the governments of the world are now cracking down on cryptocurrencies and the crypto exchanges.   All of the crypto exchanges domiciled in the US or conducting transactions for US citizens are operating illegally. The shuttering of exchanges has reduced the liquidity and the prices for all cryptocurrencies throughout 2018.  

The issues that the crypto community is facing due to the complete void of regulated infrastructure to prevent fraud and manipulation are very serious.   To understand why I recommend that you watch CNBC’s June 6th interview of the SEC’s Director of crypto which is entitled “Here’s what the SEC’s Trading and Markets Division Director had to say about the crypto market”.   My recommendation is that my article “Crypto Desperately Needs Regulated Infrastructure Providers dated June 7, 2018 be read or Trophy Investing’s 4-minute “Crypto’s Wild West” video be viewed.  Both the video and article explain why those who become the providers of crypto’s infrastructure and their shareholders are going to make a fortune.


A good analogy for crypto was the striking of gold in California in 1849.   It resulted in 15% of the US population traveling to California to mine for gold.  Now imagine that there were no picks and shovels for the miners to buy when they arrived.  Crypto has this dilemma since it has been able to grow exponentially without any regulated providers.    

Infrastructure providers operating under government rules and regulations would reduce cryptocurrency scams and increase liquidity.  The regulated infrastructure providers that are needed to emerge as soon as possible are similar to the providers of the infrastructure for the world’s publicly traded stock and bond markets.   They are as follows:

  • Exchanges which are in compliance with US’ Securities Exchange Act of 1934 are needed to list and make markets in all of the cryptocurrencies.  There is presently not one crypto exchange that lists all of the 1,325 cryptocurrencies.  The “NYSE” of crypto must emerge. The term “crypto exchange” is a misnomer.  The more than 200 existing crypto exchanges operate similarly to an unlicensed broker dealer.          

    

  • Investment banks which are in compliance with the US’s Securities & Exchange Commission’s regulations to raise capital for initial coin offerings (ICOs) and secondary coin offerings.  The “Goldman Sachs” of crypto must emerge.

 

  • Licensed brokers and, more specifically, online brokers are needed to introduce the cryptocurrency asset class to investors.  The clients of the brokers will provide the capital for the ICOs and secondary offerings that are launched by the crypto investment banks.  The clients will also provide the secondary market liquidity for the crypto currencies which are listed on the regulated crypto exchanges. The “Ameritrade” of crypto must emerge.

 

The table below depicts the valuations for the existing global ecosystem for the public markets consisting of exchanges, investment banks and online brokers.  The companies who emerge provides crypto’s infrastructure and their investors could potentially make a fortune.

 

 

StartEngine which has been a SEC regulated funding platform for the last several years is in the position to become the “Goldman Sachs” of crypto.  The company has leveraged its position as the second largest US regulated crowdfunding platform to become the dominant funding platform (investment bank) for cryptocurrency issuers.  StartEngine accounts for 20 of the 26 Regulation CF coin and token offerings that are now listed on US Regulated CF platforms. It also has two cryptocurrency exchanges, tZERO and the Miami Crypto Exchange which are listed on its platform.   The two are raising an aggregate of more than $100 million under Regulation 506C.

With StartEngine’s emergence as a first mover in the cryptocurrency investment banking/funding platform space the probability has increased considerably that its valuation will reach $1 billion by 2020.  That happens and its share price could potentially multiply by 14 times and from $5.00 to over $70.00.


My November 17, 2017 articles entitled “StartEngine’s New Secondary Market Extremely Disruptive to Capital Markets” and “Shares of StartEngine Poised to Multiply in 2018”, explained why StartEngine had significant upside as an investment opportunity.  StartEngine at the time was only listing equity offerings on its platform. With its becoming the leading cryptocurrency investment bank StartEngine’s shares are even more desirable.  The 5 minute, 37 second video below which was produced in November 2017 and prior to StartEngine’s becoming involved with cryptocurrencies is highly recommended.

 


 

The last and probably the most important reason to aggressively purchase shares at $5.00 from StartEngine’s ongoing offering is because the shares are not restricted and thus can be immediately listed and sold for a profit.  Since StartEngine is becoming visible as a key cryptocurrency infrastructure provider the probability is high that the demand and price for its shares will increase will increase significantly by the end of 2018. Also, due to StartEngine’s first mover crypto position and the cryptocurrency community being in desperate need of regulated infrastructure, the probability is very high that it will attract savvy and also strategic investors who will be amiable to invest an amount much larger than $5 million in the company.   When that happens the shares that are currently available through StartEngine’s current offering at $5.00 shares will become very liquid and at much higher prices.

 

Finally, StartEngine recently released its preliminary financials for its first quarter ended March 31, 2018.   It reported revenue of $850,000 which was 70% higher than its annualized revenue for 2017.   

Information on how to purchase a minimum of 100 shares of StartEngine @$5.00 is available at www.TrophyInvesting.com.  Trophy Investing is a member-based investing community that excels at identifying startups and early stage investment opportunities for its members which have the potential to multiply in five years or less.