Security Token – The Next Stage of Tokenized Economy

09/07/2018

Yannik Heinze

administrator

2017 was truly the year of ICOs and a kind of Wild West, but regulations as well unexpected exits around some crowdfundings, keep ICOs in a shady light.

Does it mean that all tokens from the past raises are worthless?

No, the most of the ICOs distribute so-called utility tokens, that can be used on there platform or service. But what happens when utility tokens didn’t get a usage in the near future?
We have seen that in a lot of cases from projects that raised money in 2017, and need to deliver working products now (June 2018), after a year of development. In the most cases we got disappointed by small MVPs (Minimum Viable Product) or not being a concrete usage of the token itself.

What is the essence of that round up from the last utility token year? Definitely some postive aspects like new jobs for developer, innovative ideas got funding and an open market to invest in startups. When we have a positive side, we can’t hide the negative, like: a lot of speculation, over funded projects, phishing attacks around the whole crypto market and not to forget the exit scams.

There come Security Tokens, that are a kind of an asset from two worlds.

We know IPOs are the traditional way by which companies go public, offering shares to the financial institutions and the general public. A share entitles the holder ownership in the company, rights to vote and participate in the stakeholder meetings. It is a promise of getting dividends in the future or getting profit due to the rise in the prices of the shares. That’s why a token offered during an ICO is different than a share offered during an IPO. 

If we imagine that IPOs are nothing more than 101101 in our financial system, why not giving shareholders those kind of rights directly offered by the company itself in a digital way?

That means security tokens, based on blockchain like ethereum or a decentralized system that is distributed to all companies/investors who are offering or buying security tokens, can be a game changer. Because then, transactions between holders are much cheaper, faster and transparent. These are definitely the right steps into a tokenized economy 

Media echo:
https://www.ccn.com/electric-scooter-startup-spin-seeks-125-million-in-security-token-offering/
https://www.businesswire.com/news/home/20171219006184/en/Overstockhttps://www.investopedia.com/tech/2018-year-security-token/
https://www.forbes.com/sites/astanley/2018/04/30/security-token-blues-key-secondary-market-trading-custody-questions-still-linger/2/#200fafca280c
http://www.richmond-news.com/news/kabuni-to-issue-world-s-first-security-token-and-build-facility-in-richmond-1.23173090

5 Important things to know about Security Tokens

  • ▶ The regulation and legal framework are based on rules and can be coded into a smart contract
  • ▶ Security Tokens can open the market to a lot more institutional investors
  • ▶ Security Tokens are more fraud-proof and meet regulatory criteria from the beginning, so as not to be liable for legal trouble like so many ICOs are now.
  • ▶ They can give you voting rights, dividends, present your ownership in a digital way and can be shifted and sold much faster then current share structures.
  • ▶ Structuring a token as a security leads to legal clarity and protection for both, the company and the ICO contributors.

 

2 Tips to get involved in the next big thing 

▶ Security Exchanges are coming – take a look, because there are only a few

https://www.tzero.com (USA / Exchange )
https://neufund.org (Germany/ Europe / Funding Platform)
https://bnktothefuture.com (Global / Funding Platform)
https://gbx.gi (Global / Exchange )
https://blockstocks.com (Switzerland/ Exchange)
https://www.equibitgroup.com (GB / Exchange)
https://polymath.network (USA / Exchange and Framework)
https://harbor.com (Global / Framework)
https://swarm.fund (Global / Framework)

▶ Already traded tokens are

BNK (BnkToTheFuture)
Total Supply: 1,000,000,000 BFT
0,10$ (July 09, 2018)
https://coinmarketcap.com/currencies/bnktothefuture/

POLY (Polymath)
Total Supply: 1,000,000,000 POLY
0,39$ (July 09, 2018)
https://coinmarketcap.com/currencies/polymath-network/

SWM (Swarm)
Total Supply: 100,000,000 SWM
0,38$ (July 09, 2018)
https://coinmarketcap.com/currencies/swarm-fund/

NEU (NEUMARK/Neufund)
Total Supply: 53,000,000 NEU
0,31$ (July 09, 2018)
https://coinmarketcap.com/currencies/neumark/

 

The information on this site is for educational purposes only and is not investment or financial advice. Please do your own research before making any investment decisions and don’t invest more than what you can afford to lose. Cryptocurrency investments are volatile and high risk in nature. [Read full Disclaimer]