Crypto Tourism and Blockchain Cruises


I’m attorney Laura Anthony founding partner
of Legal & Compliance, a full service corporate, securities, and business transactions law
firm. Today is a special LawCast reporting on crypto
tourism.” Crypto-tourism is a new term that I first
heard less than a month ago and which is now suddenly everywhere that includes news or
information related to the crypto market place. Blockchain Cruises which was organized by
Edinburgh, Scotland based crypto wallet provider CoinsBank has already completed two cruises
including multiple crypto millionaires and a third is planned for September. The cruises included prominent speakers such
as BTCC exchange founder Bobby Lee, token promoter John McAfee, and investor and bitcoin
cash advocate Roger Ver. Other geographic areas are using crypto as
a way to advertise and invigorate tourism, including Puerto Rico that has the added benefit
of offering U.S. federal tax exemptions for residents. Switzerland now has an area known as the Crypto
Valley complete with guided tours. Likewise, Israel’s Silicon Valley has become
a crypto destination. Moreover, many crypto based travel providers
are popping up, from Cryptocribs which is similar to Airbnb to Innovation Experience
which books crypto based trips to Israel. Although there is a benefit in bringing the
material world to the digital world or bringing them together in the world of crypto, there
is a concern that many of these trips and tours are just a way for token issuers to
market their ICOs. I’ve talked a lot in both blogs and LawCasts
about disclosure requirements in securities offerings, including digital securities such
as tokens and coins. Where a crypto based trip includes ICO or
company presentations, potential investors should exercise the same caution as they do
when reviewing any other investment, including asking basic questions such as Who exactly
am I contracting with? Who is issuing and sponsoring the product,
what are their backgrounds, and have they provided a full and complete description of
the product? Do they have a clear written business plan
that I understand? Who is promoting or marketing the product,
what are their backgrounds, and are they licensed to sell the product? Have they been paid to promote the product? Where is the enterprise located? Where is my money going and what will it be
used for? Is my money going to be used to “cash out”
others? What specific rights come with my investment? Are there financial statements? And, If so, are they audited, and by whom? Is there trading data? And, if so, is there some way to verify it? How, when, and at what cost can I sell my
investment? For example, do I have a right to give the
token or coin back to the company or to receive a refund? Can I resell the coin or token, and if so,
are there any limitations on my ability to resell? If a digital wallet is involved, what happens
if I lose the key? Will I still have access to my investment? If a blockchain is used, is the blockchain
open and public? Has the code been published, and has there
been an independent cybersecurity audit? Has the offering been structured to comply
with the securities laws and, if not, what implications will that have for the stability
of the enterprise and the value of my investment? What legal protections may or may not be available
in the event of fraud, a hack, malware, or a downturn in business prospects? Who will be responsible for refunding my investment
if something goes wrong? If I do have legal rights, can I effectively
enforce them and will there be adequate funds to compensate me if my rights are violated? I’m securities attorney Laura Anthony, founding
partner of Legal & Compliance, and producer of LawCast. Should you have any questions about today’s
topic, please visit SecuritiesLawBlog.com and LawCast.com, or contact me directly. Inquiries of a technical nature are always
encouraged.

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