In this episode of the B2B Lead Gen Podcast, cryptocurrency investor, entrepreneur, and public relations executive Michael Terpin shares insights into the challenges of promoting cryptocurrency through public relations efforts, the critical issue of data protection and security – particularly in the context of telecom companies like AT&T. Terpin recounts a personal experience in which he falls victim to SIM card swapping fraud, leading to the theft of his cryptocurrency assets. Terpin's subsequent legal action against AT&T highlights the importance of robust security measures in safeguarding not only cryptocurrency but also individuals' personal information and digital identities. He calls for regulatory changes and enhanced data protection practices within the telecommunications industry, and share insight on promoting ICOs, and other way of promoting cryptocurrencies.
About Michael Terpin
In 2013 Michael Terpin co-founded BitAngels, an investment network for blockchain technology startups and the first angel network for bitcoin and digital currency startups with 500 international investors. In 2014, he founded Transform Group, a bitcoin and blockchain marketing and PR firm headquartered in San Juan, Puerto Rico, which promotes initial coin offerings (ICOs). More on that latter. Terpin also runs CoinAgenda, the leading conference series connecting mainstream investors with blockchain and cryptocurrency investors.
Before we get into Michael Terpin's interview, let's cover some cryptocurrency marketing basics...
What is an ICO?
Initial Coin Offering (ICO) is a fundraising method commonly used in the blockchain and cryptocurrency startup industry to raise capital. Some ICOs are handled by the actual startups minting the new cryptocurrency. And sometimes they hire a PR firm.
In an ICO, a company or project issues a new cryptocurrency or token to investors in exchange for traditional cryptocurrencies like Bitcoin or Ethereum or fiat currency. These tokens represent a stake or utility within the project's ecosystem. ICOs gained popularity as a way for startups to secure funding quickly, but they have also faced regulatory scrutiny due to potential risks and fraudulent activities.
It's essential for investors to conduct thorough research and due diligence before participating in an ICO, as the cryptocurrency market can be volatile and risky.
What is Fiat Currency?
Fiat currency is a type of currency that a government has declared to be legal tender for transactions within its jurisdiction. Unlike commodity money (such as gold or silver), which has intrinsic value, fiat currency has no inherent value and is not backed by a physical commodity. Instead, its value is based on the trust and confidence that people have in the government and the stability of its economy.
Examples of fiat currencies include the US Dollar (USD), Euro (EUR), Japanese Yen (JPY), and many others. These currencies are used for everyday transactions, such as buying goods and services, paying taxes, and settling debts. Central banks and governments have the authority to issue and regulate fiat currency, including controlling its supply through monetary policy measures like interest rates and money printing.
Fiat currencies are the most common form of currency in the world today and are essential for the functioning of modern economies.
Cryptocurrency Marketing and PR Tips from Michael Terpin
Terpin thinks the term "cryptocurrency" is not be entirely accurate, as most governments treat it more as property or a commodity than traditional currency. He suggested that "crypto commodities" might be a more suitable term.
The origins of cryptocurrencies trace back to Bitcoin and its creator, Satoshi Nakamoto, who introduced the concept in response to the 2008 financial crisis and the subsequent actions of central banks. Satoshi's white paper, published in late 2008, laid the foundation for Bitcoin and blockchain technology.
Blockchain is a distributed ledger operating on thousands of computers worldwide, with no centralized ownership. Terpin likens it to the internet's decentralized architecture, ensuring resilience and redundancy.
Bockchain technology is groundbreaking because it brings together various existing technologies to create a revolutionary system that withstandsnumerous challenges and attacks over the years. Terpin also notes the humble beginnings of Bitcoin, initially used for gambling and only later finding its first real-world use when one miner paid another 10,000 Bitcoin for a pizza in 2010.
Eric Schwartzman 14:34Why are so many different types of cryptocurrency because Bitcoin is a type of Ethereum as a type Dogecoin is a type you actually as part of your business do what's called an ICO an initial not not public offering, but coin offering, where you actually help organizations that are launching new coins make a market for those coins.
Michael Terpin 14:59Well, I ICO is not even a term that's used anymore. That was kind of a term from 2017 and 18. And I wasn't the one who was staging them. We were simply doing marketing or advisory work for other companies who were innovated at model. So we worked with the very first company to do an initial coin offering. Yeah, it's again, like cryptocurrencies sort of an unfortunate word. Because if they simply called a token starter, like Kickstarter would actually be a little bit more relevant, because it's not, it's not an offering of a security. You know, under the US sec, under Clayton J. Clayton, the the past chairman of the SEC, under Trump, he basically looked and said, You know, I think most of these things are securities proved to me that they're not as opposed to actually have any regulation. He went back and said, Well, we have the 1933 Act. And we have the howey test, which was a Supreme Court ruling on what was and wasn't a security based on the differences between orange futures and wine futures, and had nothing to do with technology. It had nothing to do with the innovations of the internet. It actually predated, you know, mainstream television, much light and computers. So, you know, under the current regime, under Biden, and under Gensler, who has just recently been approved, we're expecting that there will actually be hearings, and there will actually be definitions, instead of saying, hey, go back to the 1930s and fight it out in court. So that will be you know, there is currently a proposal by the longest standing Commissioner on the SEC, Hester purse, who was a republican appointee under Obama.
So she's a little bit apolitical to control as the chairman. So now you have a three to maturity for the Democrats. But, you know, for the most part, I wouldn't say that it's really kind of a mainstream political issue. I think it's really a definition of trying to figure out what regulation to put this other because right now, in the United States, you've got the IRS since 2014, has said that Bitcoin and most cryptocurrencies or property fincen has set its money. And the ctfc has implied that as commodities, like gold, and so you have to have some agreement about what this is, or else, you know, everybody has to kind of just guess, on their own. And for the most part, what they've done is American entrepreneurs have left the United States and simply done everything outside of the United States, because they're just afraid that they're going to get it wrong, because there's no clarity about what's what getting it right is. And so most jurisdictions, the United outside of the United States and a few other jurisdictions, you know, have said, No, we know what it is. I mean, Singapore is what it is. And, you know, some other places have said, yes, if you do that, if you do a, a a token generation event in our jurisdiction, here are the rules. within the United States, Wyoming has said, we will exempt you as not being a security if you meet the following criteria, because the SEC has said Bitcoin is not a security. They said Ethereum is not a security, but they had this kind of vague definition that if you're using a token to go and build something that doesn't exist, then it's a security, which is kind of an odd thing, because that's what Kickstarter does, right. And Kickstarter is are typically not considered securities, because you don't have any equity interest in the company. And so we're in this very gray area right now that most entrepreneurs simply don't deal with us. And they simply go offshore. And they, you know, they they start companies in Singapore. And it's a shame because this is all taxable revenue, that that is saying, we want to be a US company. And so there's been a flocking of companies to Wyoming, because Wyoming, which two years ago was two, three years ago and forget when the the first legislation was, you know, very, you know, kind of, I wouldn't say anti crypto, they just simply their existing regulations that you couldn't even, you know, donate Bitcoin. And then that was considered money laundering of some form. And Caitlyn long, who is incredibly bright woman and a friend of mine, who, you know, graduated from the University of Wyoming, you know, went to New York spent 25 years on Wall Street at Morgan Stanley primarily, and then got into cryptocurrency early, she wanted to go and donate Bitcoin to her University. And they said, Well, you can donate cash. But, you know, from our reading, it's against the law for you to donate Bitcoin. She said, That's ridiculous. She moved back to Wyoming. She got that law changed and clarified in Wyoming. And while she was there, she decided that she could turn Wyoming into a crypto capital for the United States and she working with the you know, Wyoming governor that we're having legislature have now passed over 70 laws and there's been A boom of companies moving to Wyoming to do token sales there because Wyoming will go and say,
