Hi First name,

Thank you for your interest in Unicoin!

Shall we issue unicoins as securities or not?

The past U.S. Administration and its SEC treated all cryptocurrencies, except Bitcoin, as securities. Paul Atkins, the new SEC Chair appointed by President Trump, repeatedly promised to revise that approach. Last week, on November 12th, he announced his criterion.

To be considered a security, cryptocurrencies must create “reasonable expectation of profits [which] depends on the issuer’s representations or promises to engage in essential managerial efforts. These representations or promises must be explicit and unambiguous as to the essential managerial efforts to be undertaken by the issuer.”

While the SEC has not yet released detailed regulations, the position of the SEC Chair is a clear indication of the SEC policy, as he’s usually supported by two other Republican Commissioners and can rely on a 3:1 majority vote.

As co-founders of Unicoin, Silvina and I, supported by our team, have done extensive work to increase Unicoin’s brand visibility and value. Unless we disavow our commitment to this work, unicoins (including UnicoinX) will be considered to be “securities” and their liquidity will be negligible.

To ensure that unicoins are not considered securities, we’d need to change our business model to a community-supported model, ideally with decentralized decision-making. We’d need to establish the Unicoin Foundation, which will oversee the promotion of Unicoin. The decisions will be made through voting by the owners of unicoins. The community will need to be incentivized to continue developing and promoting Unicoin so that the Foundation will require a sufficient number of coins.

We are eager to issue and list coins ASAP, and we have everything ready for an exchange listing.

However, if we “stay the course” and become classified a security, we can only list on SEC-approved exchanges, which have very low trading volumes. Worse yet, we may continue to remain a subject of the SEC harassment indefinitely.

If we want to “dodge the bullet” and be listed on major exchanges, we must issue unicoins as non-securities; however, this decision requires the support of our investors.

Which direction would you prefer us to go?

Please post your thoughts under the LinkedIn version of this message.

Sincerely,

Alex Konanykhin
CEO, Unicoin Inc.
Linkedin.com/in/konanykhin
Konanykhin.com
Unicoin.com
1 World Trade Center
85th Floor
New York, NY 10007

P.S.: My updates focus on our journey towards becoming a publicly-traded company and on our efforts to turn our Unicoin into a major cryptocurrency. These updates are not intended to serve as financial advice or to replace our official reports filed with the SEC. Please note that I cannot possibly answer all the questions myself, so your response to this message may be processed by members of our Investor Relations team. “Unicoin USA” term is occasionally used for Unicoin Inc., a Delaware corporation. My past updates can be found at u.site/updates

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