Sarson Funds, an independent provider of cryptocurrency educational services and investment vehicles designed for the financial advisor community and their clients, announced today that the firm's upcoming RegD and RegCF capital raise will proceed using either Tezos or Ethereum's ERC-1404 standard.
INDIANAPOLIS (PRWEB) December 06, 2019
Sarson Funds, an independent provider of cryptocurrency educational services and investment vehicles designed for the financial advisor community and their clients, announced today that the firm's upcoming RegD and RegCF capital raise will proceed using either Tezos or Ethereum's ERC-1404 standard. This news comes after Sarson Funds' recent partnership announcement with Vertalo, the Operating System for Digital Assets, which will be used as the firm's cap table management platform.
The Ethereum ERC-1404 Simple Restricted Token Standard is an open source protocol designed for security tokens, tokenized securities, as well as other tokens with complex compliance requirements. While ERC-1404 carries the same interoperability and simplicity benefits of an ERC-20 token, it possesses several key improvements, allowing issuers to maintain regulatory transfer restrictions - a must for issuers desiring to remain compliant with US exempt security offering regulations.
Comparatively, Tezos is a self-amending decentralized platform, that while similar to Ethereum, possesses unique distinguishing features. This includes the network's on-chain governance, which allows holders of Tezos' native coin (XTZ) to vote on the network's future direction and employs a unique security-focused language, named Michelson, that Tezos utilizes to write smart-contracts. Michelson was invented by the Tezos team for the purpose of facilitating formal verification, an algorithmic process to validate and prove the correctness of logic behind its smart contracts.
Sarson Funds Managing Partner John Sarson expressed confidence in how his team narrowed the field to Tezos and Ethereum's ERC-1404, highlighting both protocols' flexibility, security, and enterprise-grade engineering. Sarson highlighted this, saying, "It is important to get this right the first time. We don't want to raise millions of dollars, only to be told in a few months to return it because we weren't compliant. That is a mistake we saw companies commit in 2017 and we are now fortunate to have clearer SEC guidance today on what is expected from a token issuer."
Sarson also noted the importance of Wall Street-grade regulations, saying, "Sarson Funds embraces strong regulatory standards. Established regulations are a sign of maturation, and we believe wider scale cryptocurrency adoption will take place only when investors see transparent guidelines and protections in place. That is why we have partnered with Vertalo, to help us successfully navigate compliant token issuance."
The firm hopes its early embrace of tokenization and digitized cap table management can serve as an example for innovation in capital markets, while bringing new liquidity and transparency to investors. Sarson Funds is planning to announce their choice of protocol - either Tezos or Ethereum ERC-1404 - by the end of the calendar year.
ABOUT SARSON FUNDS
At Sarson Funds, we believe that disruptive innovation deserves unbiased education and transparent investment products. We work with your existing financial advisor to determine if an allocation to cryptocurrency is right for you. Learn more at http://www.sarsonfunds.com.
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