Jan 25, 2018

The world's hottest crypto deal

Source: Giphy

The hottest deal in venture-land right now isn't a venture deal at all: It's the massive pre-ICO for encrypted messaging startup Telegram.

Details: Brand-name Silicon Valley firms like Benchmark already have (quietly) signed on to what reportedly could be a $500 million offering, after which Telegram would sell even more tokens to develop its own blockchain platform and native cryptocurrency.

That's the front-of-house business. In the back-of-house, venture firms are frantically reworking fund agreements to permit crypto investments.

  • A Silicon Valley fund formation lawyer tells me that around one-third of new VC fund documents include new language that explicitly permits the purchase of crypto assets, often with some sort of concentration limit.
  • The lawyer also says that he's now spending at least half his time fielding calls from clients asking crypto-related questions.
  • Existing funds often are going to LP advisory committees for permission to do such deals, particularly if they are purchasing actual tokens. Pre-sales are generally structured as simple agreements for future tokens (SAFTs), or contracts that legally double as securities.
  • One big complication is how to handle in-kind distributions. Most LPs don't yet know what to do with tokens, and it gets even more complicated for registered investment advisors (i.e., most funds-of-funds) who need to have their assets held by qualified custodians. In short, it's unclear if any custodians are actually qualified to hold tokens.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 10:30 p.m. ET: 1,273,990 — Total deaths: 69,444 — Total recoveries: 260,247Map.
  2. U.S.: Total confirmed cases as of 10:30 p.m. ET: 337,310 — Total deaths: 9,634 — Total recoveries: 17,461Map.
  3. Federal government latest: Surgeon general says this week will be "our Pearl Harbor, our 9/11 moment." The USDA confirms that a Bronx zoo tiger tested positive for coronavirus.
  4. 2020 latest: "We have no contingency plan," Trump said on the 2020 Republican National Convention. Biden says DNC may have to hold virtual convention.
  5. States updates: New York Gov. Andrew Cuomo said the state is "literally going day-to-day" with supplies.
  6. World update: Queen Elizabeth II urges the British people to confront pandemic with "self-discipline" and "resolve" in rare televised address.
  7. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Intelligence community watchdog suggests Trump fired him for doing his job

Michael Atkinson, Inspector General of the Intelligence Community,at the Capitol in October. Photo: Win McNamee/Getty Images

Intelligence Community Inspector General Michael Atkinson suggested in a statement Sunday President Trump fired him for acting impartially in carrying out his duties following a whistleblower complaint.

Why it matters: Atkinson alerted Congress last September to the complaint on Trump's correspondence with Ukraine's president, triggering an inquiry that resulted in the Trump's impeachment.

Go deeperArrowUpdated 54 mins ago - Politics & Policy

U.S. coronavirus updates: Death toll passes 9,500

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

Recorded deaths from the novel coronavirus surpassed 9,500 in the U.S. Sunday evening, per Johns Hopkins data. The death toll in the U.S. has risen over 1,000 every day since April 1.

Why it matters: U.S. Surgeon General Jerome Adams said on Sunday this upcoming week will be "the hardest and saddest week of most Americans' lives" — calling it our "our Pearl Harbor, our 9/11 moment."

Go deeperArrowUpdated 2 hours ago - Health