Shortly after Singaporean blockchain project BitcoinHD (BHD) received approval from the U.S. regulators to offer security tokens, it is looking for a listing on the major Coinbase exchange.
On March 30, the SEC approved BHD’s blockchain-based STO under a so-called Form D exception.
Form D is a short registration form in which a company discloses key information to potential investors when it issues securities. The form is significantly shorter than the lengthy reports required to sell a non-exempt security to the United States. Investors. Approved projects can only sell their security to accredited investors.
These are defined in the United States. as individuals with a net worth of over $ 1 million, or as a company with an income of over $ 200,000 per year, or as a company with assets of over $ 5 million.
In its May 11 announcement, BHD stated that it was the first approved STO to file a listing with Coinbase.
What does BHD offer?
BHD intends to issue exempted securities in its blockchain-based BHD cryptocurrency, which uses a CPoC or Conditional Proof of Capacity consensus and mining mechanism.
Algorithms for consensus mechanisms within the framework of the Proof of Capacity framework enable nodes in the blockchain network to use the available hard disk space for their mining rights and not for the computing power of their device.
BHD argues that using a hard drive as a consensus participant lowers energy consumption and therefore lowers entry barriers for network members, possibly leading to a higher degree of decentralization.
It is also claimed that the CPoC consensus mechanism is ASIC-resistant – i.e. H. Mining hardware that uses application-specific integrated circuit chips that are tailored to efficiently extract cryptocurrency based on a particular hashing algorithm has no advantages.
As BHD notes, Coinbase evaluates whether new crypto assets should be listed in accordance with the provisions of its digital asset framework, which includes extensive criteria such as security and code, compliance requirements, team review, scalability, market demand and governance.
Coinbase and the professional trading platform Coinbase Pro enjoy a good reputation as one of the best-known players in the area of the central crypto exchange. Both recently crashed in a hectic pump day for Bitcoin (BTC) in late April.