A SAFT is the current model for ICO sales. It’s a contract created by cryptocurrency companies to raise money outside of SEC regulations. The contract allows the “buyer” to put cash into a startup in exchange for coins or tokens. Then, at a later date, they can exchange those tokens for equity in the company.
These contracts have no SEC oversight and do not entitle buyers to any of the safety and security measures guaranteed to investors of SEC-approved securities.
SAFTs have come under fire from the SEC recently, largely because of the rate at which cryptocurrency companies have failed.
CERES has opted to raise funds through Reg A+ using the PIA (Private Investment Agreement) model. Through a PIA, investors are entitled to digitalized ownership of the company. They can convert their investment into coins at a later date if they choose.
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