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Expert Interview


 

Gene Massey

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Transcript


 

Adam Chapnick:

Hey everybody, it's me again, Adam Chapnick from the Security Token Academy. Thanks for being with us. We are excited because we are here at Security Token Industry Launch Week and I am here with a good friend of mine, it's Gene Massey. Gene is with IT Biometrics but there is so much more to him and we are going to find out more about that right now, thanks for being with us Gene Massey.

Gene Massey:

Thank you glad to be here.

Adam Chapnick:

All right, so before we get into the company, can you tell us a little bit about what you have been involved with in this industry? You have had a lot of, your hands have been in a lot of different pies here.

Gene Massey:

In '99 I ran around telling people that I was going to invest new way to finance movies and I called it Fan Financing, this was before crowd funding and I actually, in 2004 I have an issued US patent for Fan Financing Movies, selling single shares of stocks to movie fans. And so when crowd funding came around in 2006 I adapted and I got known as a somewhat of a knowledgeable person in the crowd funding area and I started getting involved in a lot of conferences with Dara Albright and became known in this industry as a crowd funding person. I have worked with many years for Media Shares as a consultant and my most exciting thing right now is I am working with a company called IT Biometrics which just so happens to manufacture a cold hardware fingerprint wallet. It has the most sophisticated fingerprint reader in the world. It actually takes your temperature, read your veins and pulse as well as your fingerprint and it is going to revolutionize the hardware wallet industry.

As you know everybody that accesses crypto currency account needs to use a wallet, right, and a software wallet on the internet gets hacked so everyone keeps their coins in a hardware wallet. So we think that simplifying the process, making it very easy for anyone to put their thumb or finger on the thing and access their account immediately and easily, that that will be something that will make a lot of money on.

Adam Chapnick:

I think that makes a lot of sense.

Gene Massey:

So how we do raise money for this, we are going to do two things. Right now we are doing a Reg B of course, with the understanding that there is a Reg A coming that makes an investor excited about the factor that there is a liquidity event coming with a Reg A and we want to build some sort of hybrid Reg A token offering.

Adam Chapnick:

Okay, so let's back up for a minute, so you threw out a few lingo terms. So right you are doing a Reg D, which means you can go to a credited investors, traditional private placement, as you were.

Gene Massey:

That's right.

Adam Chapnick:

Then you said that's going to make people excited because you are coming after it with a little bit of a Reg A+, you are giving it jab with a Reg D, and you are giving the cross with the Reg A+. Why does an investor care about that?

Gene Massey:

As you know an investor that invests in a Reg D offering is restricted for a year and it's really very tradable or liquid.

Adam Chapnick:

Correct.

Gene Massey:

So whatever investor is looking for is liquidity and an exit and a Reg A is a good exit and a good liquidity event.

Adam Chapnick:

Because the Reg A makes it possible-

Gene Massey:

It's a mini IPO, it's a mini IPO. And also, we want to go with the main street investors with a brokerage, an investment banking firm that represents us so that people don't think it's a token, what's that? An investment banking firm knows it's a regular IPO and I can buy a share of stock and everything. There is also a crypto community that is very interested in using the invested crypto dollars in things, investment opportunities and so that's what we want to do, we want to hit both communities, the regular investment banking community and the crypto community.

Adam Chapnick:

So, you are doing a security token offering?

Gene Massey:

We would like to.

Adam Chapnick:

You would like to, okay great. So is that going not fall in the Reg D, the Reg A+ or both?

Gene Massey:

You start with Reg D and hopefully eventually it morphs into a Reg A.

Adam Chapnick:

Okay, great, so all of it will be a security token? Okay.

Gene Massey:

Oh yes, for me, people say a token, a utility token you put that in a washing machine or a parking meter. A security token is the only way to go I think.

Adam Chapnick:

What made you decide to do that?

Gene Massey:

Because we have traveled all over the world, we have been to Warsaw, Zurich, London, Dubai, San Francisco, IT Biometrics is going to be in Money 2020, we are going to Barcelona in two weeks and so we have accessed the crypto community and discovered that's where a lot of people are really interested in that area.

Adam Chapnick:

What is the benefit of doing an STO for you guys?

Gene Massey:

As you know, a STO has some advantages over a regular stock offering. You want to buy a stock you have to have a brokerage account and it takes three days to clear or something like that and so you have all sorts of issue with a regular investment. Now that's not to say, look regular investments work, but with a token offering, you can buy it on an exchange, you can buy it instantly, you don't have to have a brokerage account, it's simpler, quicker, easier, cheaper, there is not intermediary, so it has some advantages, it has some disadvantages, but it has some advantages.

One of the advantages is that a lot of people are sitting on crypto currency and that is a big issue for anyone looking for an investment, you want to be able to access that community for those investments. Sometimes you can't buy a pizza, true, so they want to be able to invest in something with all this crypt that they have accumulated, so that is an investment pool that we want to access.

Adam Chapnick:

Do you think that there is anything about the fact that the major crypto currencies have slipped and stagnated? In other words you have Bitcoin that ran 6 6500?

Gene Massey:

It's all being absolutely totally manipulated, they realized that it was too squirrely, so whoever, whether it's the FED or [inaudible 00:07:04] himself, someone is keeping it within a trading range, to make it into a more stable currency, that's my philosophy. That's my philosophy. That's my thing. That's my psychic-

Adam Chapnick:

That's what you think.

Gene Massey:

That's my psychic pitch.

Adam Chapnick:

Who knows, you may be right. I was going to ask if you thought because people, there is this massive influx of capital into Bitcoin, Ethereum, light coin things like that last year, but now it's all kind of dipped and stayed, like you are saying in that trading range, do you think that is going to encourage people to get out of those currencies and into investments, into IPOs?

Gene Massey:

What is it is encouraged, I know people that lost money when it was 20,000 and went down and I also know people that bought at a penny. So the people that bought at a penny they are not concerned, the people that bought and got their fingers burned they are not investing anymore, they are like, I am not going to touch that for a while. So the money that is being held, is being held and whoever is controlling it. I don't know, but it's staying within a range. I don't think you are going to see it fall below 5,000 and for a while I don't think it's going to above 8,000. That's my psychic prediction.

Adam Chapnick:

Got it. So let's go back to your hardware, so what are you going to do, how much money are you trying to raise with the STO?

Gene Massey:

Only two and a half million for now and that would pay for our Reg A offering where can raise up to 50 million.

Adam Chapnick:

Okay, and let's say you get into the neighborhood of 50 million, what are you planning to do with that for your-

Gene Massey:

Well a really good finger print reader like ours can be used for a lot of things, car, home. As a matter of fact, this very fingerprint reader is being used for time cards.

Adam Chapnick:

Punching in?

Gene Massey:

You know someone really logged in and it's not somebody, we hacked an iPhone with a gummy bear, seriously, you can go on YouTube and you will see hacking the iPhone fingerprint reader, you will see us hack an iPhone fingerprint reader with a gummy bear, a copy of a fingerprint, but not on our device. Because our reads blood flow and pulse.

Adam Chapnick:

Amazing.

Gene Massey:

So this can be used on your front door, your car, your bank account, so obviously we are going after the crypto community to start with, it's a good place to start. Ledger did a hundred million in the first year with wallets, so we figure we can do some pretty serious sales.

Adam Chapnick:

Well, we wish you all the luck in the world with this, it sounds pretty amazing and make sure you come back again and tell us how it's going.

Gene Massey:

Thank you! I am a big fan of what you are doing.

Adam Chapnick:

Thank you!

Gene Massey:

I think Security Token Academy is probably one of the best things to come along in a long time. Because it is, what we really need in this area is education and that's what you are doing, so what could be better than an education in this. And it will also help the SCC and the regulatory bodies in every country, help move it forward, this education, so what you are doing, I am big fan of.

Adam Chapnick:

Thank you so much!

Gene Massey:

And thank you for the opportunity to be here, I am a big fan of you Adam Chapnick, for a long time.

Adam Chapnick:

We appreciate you. We go back and come back again soon.

Gene Massey:

Okay.

Adam Chapnick:

Okay.