There are few people as well-equipped to comment on the concept of blockchain -based crowd equity as Boost VC CEO Adam Draper . In addition to his involvement with the long list of blockchain-related investments made at Boost VC, Draper also launched BoostFunder , which he says was the first crowdfunding-for-equity platform.
Draper recently shared some of his thoughts on blockchain-based crowd equity on an episode of the Bitcoin.com Podcast . Initially, the venture capitalist stated: “I think we’re at this sort of crossroads with the crowdfunding of the coin-based system. It’s going to work because it’s efficient, you can keep track of it, and the ledger clears it automatically. There are a lot of things that are better about that system.” Draper went on to discuss the need for regulatory approval of this type of system, the effects of the JOBS Act , and the need for this type of fundraising system to have time to develop and grow over time.
Regulatory Approval Is Needed for Mass Adoption
The main issue Draper sees with blockchain-based crowd-equity platforms is the lack of regulatory approval. Draper explained, “The problem is right now that you need a regulatory body to adopt it. Otherwise, it’s just not going to get mass approval.”
While many early Bitcoin and blockchain adopters do not like the idea of asking for regulatory approval, Draper said, “It’s going to be really, really important for the system to have that regulatory approval. You’ll never go completely around the government.”
Draper then added that this need for regulatory clarity is not something he personally desires, but rather the simple reality of the situation. He noted: “And I don’t love saying that ‒ for the record. I also see the regulation as a barrier to entry. To get through that regulatory approval ‒ […]
