“”

PIA (Private Investment Agreement)

March 21, 2019

A PIA (Private Investment Agreement) is a new specialized type of investment agreement. Rather than documenting a “pre-sale” of tokens, a PIA allows the investor to convert their investment into coins at a future date. They are not required to convert at the time of the agreement.

As a PIA investor, an individual will be entitled to participate in a percentage of the net income of a company. They will also have the opportunity to convert their PIA into tokens or cash, pursuant to the timeline and terms set forth in the PIA. Because investors are entitled to a portion of the net income of an organization, this contract is safer and more stable than former contract models.

This is a new model for the sale of ICOs and STOs, and it replaces the old investment contract (SAFT) in which investors can convert their tokens/coins into equity at a later date.

To learn More, see our other Articles

2019 Crypto RoundUp: The 4 Biggest Stories in Cryptocurrency This Year
3 Myths Surrounding Cryptocurrency
How CERES is Solving the Banking and Compliance Issues in the Cannabis Industry
Why Compliance is More Important Than Ever In The Crypto Space