FAQs

What is a security token?

At a basic level, a token (or “coin”) is a digital identity for something that can be owned. (I own 20 Bitcoin tokens… or 100 Litecoin tokens.)

A security token is a tradable asset. It can pay investors dividends, interest, or represent an equity stake in the underlying asset. Since these tokens are backed by a secured asset, and are tradable, they’re subject to federal securities regulations just like stocks.

Security tokens provide a way for asset owners to sell off a portion of their assets (real estate / art / collectibles / companies) to investors with the speed and security of blockchain, while providing investors with regulatory protection.

What is the difference between a security token and a utility token?

The first generation of cryptocurrencies are mainly utility tokens. They weren’t created to be an investment. You can think of them like app coins or user tokens. They allow access to a company’s products or services, most of which are still in development.

One example is Filecoin, which raised $257 million by selling utility tokens. These tokens will give users access to its decentralized cloud storage platform.

For more on utility vs. security tokens, here’s a helpful guide by CryptoPotato.

What are the benefits of a security token offering (STO) vs. a private placement?

The security token market creates an avenue for any company to sell a portion of an asset to investors—including real estate, art, businesses, or any of the hundreds of trillions of dollars’ worth of assets around the world—using the speed and security of blockchain.

Cost-effective

Smart contracts (or cryptocontracts) are self-executing blockchain contracts that eliminate intermediaries (investment banks), which in turn cuts down costs of service delivery. This makes security token offerings a much cheaper alternative than the traditional private placement route.

Fast

Important security checks like “know your customer” (KYC) and “anti money laundering” (AML) are automated, which makes it much quicker to sell assets to accredited investors. These steps also ensure that our tokens are fully compliant with regulatory authorities. (Everyone who participates in our Curzio Equity Owner token offering must fill out these documents to invest.)

24/7 trading

Crypto trading outshines traditional trading because it’s continuous. Most security token exchanges are open 24 hours a day… so you can trade any time day or night

Rapid adoption

Security tokens are bound to be quickly adopted once it’s realized that they can lead to more liquidity and less administration. They’re already being adopted by Hollywood (individual investors can now fund movies), artists (Andy Warhol recently tokenized and auctioned a 31.5% stake in one of his paintings), and real estate (the St. Regis Aspen Resort recently tokenized its hotel giving investors an ownership stake).

Faster “liquidity event” for investors

With a traditional private placement, investors’ money can locked up for a considerable amount of time. It takes five years for the average venture-backed company to be acquired… and over eight years to go public (IPO).

But STO participants can convert their tokens to cash after a 12 month lock-up period.

Curzio Equity Owners (CEO) token FAQs

If you have a question or concern we haven’t answered below, write to us here. We’ll add to the FAQs as we receive your feedback.

What is unique about the CEO token?

The CEO token is the first digital asset offered in the high-margin investment newsletter business—an industry that’s been largely closed to outside investors for decades. As an investor, you’ll participate in the growth of our company.

What are the benefits of owning CEO tokens?

CEO investors will own an equity stake in our underlying business (Curzio Research). This means you’ll participate in the growth of our company, have the opportunity to receive a dividend (which we intend to pay quarterly), and receive a CEO Owner’s Club membership, which entitles you to everything Curzio Research publishes for the duration of the membership. (The membership period ranges from two years to lifetime and is dependent on the investment amount.)

The CEO token will be liquid after a lock-up period of 12 months (which begins the day after our token sale closing). As noted above, this “liquidity period” is much less than the typical waiting period for a private placement, where it takes an average of seven years (through an IPO / or acquisition) before investors can cash out.

What is the minimum investment for the STO?

$25,000

What forms of payment are accepted?

You can use Bitcoin, Ethereum, or U.S. dollars to purchase CEO tokens.

Do I have to be an accredited investor?

Due to SEC regulations, all CEO investors must be accredited (U.S.) or qualified (based on international jurisdiction regulations). This requirement protects those who may be unable to sustain any economic risks of investing in unregistered securities.

Do I need proof of accredited investor status?

With a security token offering, investors must show proof they’re accredited. This can be in the form of past tax statements (W2, Form 1099, Form 1040), bank statements, brokerage statements, or appraisals. You can also provide written confirmation from your licensed attorney/CPA verifying your accredited investor status.

(This is different from a private placement, where you usually just need to fill out a form and check the appropriate accredited investor boxes.)

This extra step is necessary, since U.S.-based digital token exchanges require this check (as well as KYC / AML) before allowing a token to be listed on their platform. And while this is a little time-consuming, it’s for investors’ benefit.

Curzio Research wants to make sure all investors fully understand the risks involved with this offering, including the potential loss of the investment.

How do I become accredited?

You're an accredited investor if...

  • Your annual income is greater than or equal to $200,000 ($300,000 for joint income) for the last two years and you expect your future income to be the same or higher.

  • You have a net worth exceeding $1 million, either individually or jointly with your spouse (not including your primary residence.)

Are the tokens available to foreign citizens?

CEO tokens will be offered to U.S. and foreign citizens. Jurisdictions will be detailed in the investor (SAFE) agreement (available at the time of the launch).

How much is Curzio Research planning to raise?

Soft cap: $3 million
Hard cap: $12 million

Note: In the event the minimum offering amount is not achieved, purchasers shall receive a full refund of their investment.

How will you allocate the funds?

  • Increase front-end reader file to 100,000+
  • Further monetize podcasts
  • Build a world-class investor education platform
  • Add new podcasts and reader-requested newsletters
  • Hire more expert analysts and other key personnel
  • Collaborate with large external media outlets

Is the supply of CEO tokens limited?

Yes, the number of tokens issued will not exceed 3,332,000.

Does the fluctuation of Bitcoin and other cryptocurrencies affect the CEO token?

The value of the CEO token is directly related to the valuation of Curzio Research and not reliant on the price of any cryptocurrency.

When will the CEO tokens begin trading?

Investors will receive the tokens in their specified wallet just before the free trading date (12 months after the close of our offering).

What exchanges will the CEO token trade upon?

There are several U.S. exchanges trading security tokens today. One is tZero, which launched its digital security platform in January 2019. More than a dozen more digital token exchanges are planning to launch in the U.S. over the next 12 months. They include Coinbase, Templum, SharesPost, and Open Finance. The London Stock Exchange and Nasdaq are also rumored to be launching security token exchanges in 2019.

Our partnership with Securitize, one of the best platform providers in the industry, should open the door for us to trade our token on some of the biggest (and regulated) digital security exchanges.

When will I receive my CEO tokens?

Investors will receive the tokens in their specified wallet just before the free trading date (12 months after the close of our offering).

Will you provide investors with regular updates?

We intend to update investors on all important business news and transactions. Since we plan to hire new analysts, build our executive team, create new products, and launch new marketing campaigns after the close of the sale, we anticipate having lots of updates to send our investors through 2019 and beyond. These updates may be released monthly, quarterly, or biannually, depending on newsflow.

How do I get more information about the CEO token offering?

Visit www.curzioequityowners.com to request full details on Curzio Research’s security token offering.