Security Token Offerings: A small company overview
Are Security Token Offerings (STO) able to save the battered image of ICOs? In a regulated environment, the "ICO 2.0" could provide for a revival of token sales, Sven Wagenknecht argues in a comment from 19 October. It's time to take a closer look at a few of the projects.
The burst ICO hype of 2017 still beats high waves. As previously announced, the US Securities and Exchange Commission (SEC) has formally invited a large number of ICOs this year alone. The companies are under investigation for violations of the Stock Exchange Act.
So the question is, what future will the sale of tokens have as a form of raising capital for start-ups? As Sven Wagenknecht argued last Friday, 19 October, the chapter ICO is far from complete even after the bubble burst. In the form of regulated financial products, token sales could still be a viable option for raising capital. In a legally secure environment, STOs could finally get institutional investors on board. That would be a milestone in establishing this form of corporate finance.
Time for an overview
STOs are a young phenomenon. Accordingly seeded are start-ups who adopt this funding. Based on selected examples, we would like to draw attention to existing projects.
First a company from Germany. Brille24 is one of the leading online opticians in Europe. The company advertises with modern AI applications, which should handle the purchase of glasses entirely online. This includes a virtual fitting and the online examination of the eyes.
To further finance research and development, the company plans an STO on Newfoundland. Each token is backed up 1: 1 by company shares. Since they are de facto securities, investors are entitled to dividend.
In the Growth Ranking 2017/18 of the online platform Gründerszene, mySWOOOP took 25th place among the fastest growing tech companies in Germany. The re-commerce company specializes in the price-optimized purchase and sale of a variety of used goods. With my own software mySWOOOP guarantees the purchase and sale at best prices.
MySWOOOP is also planning to emit security tokens via Neufund in order to enable investors to participate in the profits.
The Swiss company BlockState is committed to the digitalization of financial products. Smart contracts are used to manage the token-based assets. BlockState is focusing on a "more inclusive financial market," as Michael Weber, founder of BlockState, puts it.
In addition, BlockState manages the CTF15, a type of crypto-ETF that allows investors to cover the 15 largest crypto assets, according to the company.
BlockState is also one of the first companies to launch its STO via Neufund. The tokens should also give investors the usual shareholder rights here. We already reported on the BlockState STO in June.
In contrast to the previous STOs, BlockEstate does not enter into a partnership with Neufund but with the STO intermediary Polymath. BlockState is a finance company focused on the US real estate market. The hardcap of 50 million US dollars would like to use BlockEstate accordingly to invest in a broad real estate portfolio. The security tokens also depict company shares, so they are to be regarded as securities. The distribution from the profits should be made quarterly.
Token sales is not over yet
The token sale as a means of corporate financing has obviously not yet had its day. On the contrary, if regulators, especially the SEC, draw the right lessons from the ICO bubble of last year, token sales in the form of STOs could be a real revival. For reasonably regulated security tokens should finally call for institutional investors on the plan.
- glasses24: PR
- blockstate: PR
- security-token-630815573: shutterstock
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