BlackStar Enterprise Group Inc (BEGI)

[Bubae]

It actually goes much further than to just say the the Blackstar method "...is to trade SECURITIES..." What Blackstar has proposed to do for years is trade “book-entry shares” on a blockchain ledger. The same class of shares which is already traded on ordinary trading platforms. Not only is Blackstar not allowed to use their trading platform but it would appear that the evolution of digital securities has eclipsed what Blackstar proposes to do. Securities are already being traded on a blockchain in the for of tokenized stocks.

Bitcoin is not a security. The patent is to trade SECURITIES. So yeah, no infringement. Even a broken clock is correct twice a day.

Tokenized Stocks: The Future of Stock Trading
The INX Digital Company INC | April 8, 2024
https://www.inx.co/learn/beginners/tokenized-stocks-the-future-of-stock-trading/#:~:text=A%20tokenized%20stock%20is%20a,versions%20of%20well%2Dknown%20companies.

Stock exchanges have been the cornerstone of traditional finance, giving investors the ability to buy and sell shares. A new innovation has emerged in how stocks are issued and managed called tokenized stocks. Tokenization involves the issuance of digital security tokens on a blockchain. These tokens can represent various things, from loyalty points to real estate ownership.



For the fiscal year ended December 31, 2023
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001483646/000106594924000044/begi-20231231.htm

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The core platform has been designed for initial use with BlackStar common stock and is thus the BlackStar Digital Trading Platform™ (BDTP). Our BlackStar Electronic Fungible Shares (BEFS) are proposed to be the initially traded securities on the blockchain on the BDTP™ platform and the rights and privileges to each shareholder of the BEFS is the same as certificated shares of common stock of BlackStar. BEFS are the same class of common stock as, and are identical to, paper certificated and book-entry shares of common stock; BEFS merely describes the format of the share of common stock...

The BEFS are not “tokens” or “crypto tokens”. A “token” is generally understood to be a unit of value that blockchain-based organizations or projects develop on top of existing blockchain networks. While they often share compatibility with the cryptocurrencies of that network, they are a wholly different digital asset class....

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In contrast, the BEFS are simply uncertificated shares of stock of BlackStar, which are commonly referred to as a “book-entry shares” in DTC and transfer agent parlance or, as we refer to them, “electronic fungible shares.” Shares held in uncertificated book-entry form have the same rights and privileges as shares held in certificate form. The BEFS simply flow in and out of the existing trading system, exchanges, or OTC Markets through DTC and broker-dealers in uncertificated book-entry form....

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THE COMPANY MAY FACE REPUTATIONAL HARM, LOSS OF FINANCING, STOCK PRICE VOLATILITY, AND/OR LOW DEMAND FOR SERVICES BY PROXIMITY TO THE CRYPTO ASSET MARKET.

The Company does not operate in the crypto asset markets, does not have crypto asset holdings, and is not proposing to participate in the crypto asset industry, including crypto securities, crypto currencies, and tokens. The use of a blockchain in our proposed platform often gets conflated with crypto asset markets due to blockchain’s use in those industries as well.


SEC Correspondence vetting the s-1 Prospectus February 13, 2023
https://www.sec.gov/Archives/edgar/data/1483646/000106594923000009/filename1.htm

Page 4

Please explain whether there are differences between the common shares traded OTC and the electronic fungible shares traded on the platform, including any differences in shareholder rights. Please also clarify how shareholder rights are evidenced with respect to electronic fungible shares.


There are no differences between the common shares traded OTC and the electronic fungible shares traded through the BDTP™.