First, thanks again to our first 257 Sun Fund investors! If you are one of the over 700 Sun Fund followers on Start Engine who have not invested yet, we invite you to take a closer look at Sun Fund and consider investing today. We hope you find this update helpful.
The first six months of 2018 saw a major boom and bust in blockchain cryptocurrencies, with hundreds of once highly-promoted coins and tokens falling to fractions of a penny and investors losing billions. What happened? In our view, hundreds of coins and tokens were issued by unregulated entities - many without even a physical address - and investors paid the price for this lack of transparency. While several key digital currencies such as Bitcoin and Ethereum survive, the majority of coins and tokens issued in the last 12 months are nearly worthless and will most likely never recover.
This early-stage boom and bust cycle for blockchain technology is very similar to the early days of the Internet. Investors poured billions of dollars into just about any company with "dot com" in its name, only to find out that there was no viable business model behind the web site domain name. But just as the underlying technology of the Internet brought major technological change in the last twenty years, so will blockchain technologies fundamentally change most business and industry over the next twenty years.
Now that the initial hype of blockchain technology and digital currencies is over, we believe that solid companies with real technology and solid business models will begin this blockchain technology transformation. Sun Fund is looking to bring the benefits of blockchain technology to the renewable energy industry with a profitable business model for the long term.
Sun Fund will continue to build solar PV projects with long-term revenue contracts while also building a blockchain-based digital currency backed by these assets. Our goal is to launch this digital currency as a regulated token tradable on US exchanges in the fall of 2018. Investors in our current offering will automatically receive these tokens as part of that launch.
Today, regulation of digital tokens and currencies is limited by the existing antiquated regulatory structure. At times, a digital token or coin is simultaneously a currency, commodity and a security all at the same time. The problem is that there are different departments with different sets of regulation for each category. Over time we believe that new regulations will be developed to give blockchain technologies the freedom to develop while at the same time providing protections for holders of these cryptocurrencies. We look forward to working closely with regulators to help develop this framework.
Thanks again to our existing investors and we invite our followers to join us as investors.
- The Sun Fund Team