SAFT (Simple Agreements for Future Tokens)

March 21, 2019

A SAFT is the current model for ICO sales. It’s a contract created by cryptocurrency companies to raise money outside of SEC regulations. The contract allows the “buyer” to put cash into a startup in exchange for coins or tokens. Then, at a later date, they can exchange those tokens for equity in the company.

These contracts have no SEC oversight and do not entitle buyers to any of the safety and security measures guaranteed to investors of SEC-approved securities.

SAFTs have come under fire from the SEC recently, largely because of the rate at which cryptocurrency companies have failed.

CERES has opted to raise funds through Reg A+ using the PIA (Private Investment Agreement) model. Through a PIA, investors are entitled to digitalized ownership of the company. They can convert their investment into coins at a later date if they choose.

To learn More, see our other Articles

Top 8 Facts Cryptocurrency Investors Should Know About CERES
BaaS: How Blockchain as a Service is Shaping Business
When a Stable Coin Isn’t Truly Stable
The Full Potential of Identity Management on Blockchain