At a time when the U.S. Securities and Exchange Commission is cracking down on companies trying to cash in on the bitcoin craze, a local business aims to raise $50 million through its own cryptocurrency offering.
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Knowbella Tech CEO Mark Pohlkamp said his Covington-based company’s offering will be different from those that are causing worry at the SEC because it seeks to raise money through Regulation A, a federal rule designed to allow smaller companies to raise funds while at the same time protecting investors.
“We haven’t seen any other company make a filing with the SEC that looks like this,” said Mark Reuter, a partner at the law firm of keating, Muething & Klekamp, which is working with Knowbella Tech. “That’s what makes what these guys are doing so special.”
Knowbella Tech is an early-stage company that plans to use the money it raises to launch an “open science collaboration platform.” The company’s goal is to unlock the potential of up to $4 trillion worth of intellectual property and scientific research that isn’t currently being used productively. Pohlkamp likened it to the way Airbnb helps people make money from apartments and houses that aren’t being used.
Scientists that conduct research on the platform will get paid with the tokens that Knowbella Tech will be generating through its securities offering. The tokens will be named Helix, “The Currency Of Science.”