Security Token Offerings (STO): A Company Overview

29. October 2018 at 14:37Category:tokens

Are Security Token Offerings (STO) able to save the tarnished image of ICOs? In a regulated environment, “ICO 2.0” could bring about a revival of token sales, argues Sven Wagenknecht in a commentary on October 19. It’s time to take a closer look at a few of the projects.

The burst ICO hype of 2017 is still making waves. As was recently announced, the US Securities and Exchange Commission (SEC) formally summoned a large number of ICOs this year alone. Investigations are underway against the companies for violations of the Stock Exchange Act.

This raises the question of the future of the sale of tokens as a form of capital procurement for start-ups. As Sven Wagenknecht argued last Friday, 19 October, the ICO chapter is far from over even after the bubble bursts. In the form of regulated financial products, token sales could still be a viable way of raising capital. In a legally secure environment, STOs could finally bring institutional investors on board. This would be a milestone for the establishment of this form of corporate financing.

Time for an overview of the Bitcoin news for trader

STOs are a young phenomenon. Start-ups that make use of this funding are correspondingly rare found out onlinebetrug. Using selected examples, we would like to draw attention to existing Bitcoin news for trader projects.

Glasses 24
First a company from Germany. Brille24 is one of the leading online opticians in Europe. The company advertises with modern AI applications, which are intended to handle the purchase of glasses entirely online. This includes a virtual fitting and an online examination of the eyes.

To further finance research and development, the company is planning an STO via Neufund. Each token is secured 1:1 by company shares. Since these are de facto securities, investors are entitled to dividends.

Token Sales not yet at the end

mySWOOOP
In the growth ranking 2017/18 of the online platform Gr├╝nderszene, mySWOOOP ranked 25th among the fastest growing tech companies in Germany. The re-commerce company specializes in the price-optimized purchase and sale of a large number of used goods. With specially developed software mySWOOOP guarantees the purchase and sale at best prices.

mySWOOOP also plans to issue company shares on security tokens via Neufund in order to enable investors to participate in the profits.

BlockState
The Swiss company BlockState is dedicated to the digitization of financial products. Smart Contracts are used for the management of token-based assets. BlockState focuses on a “more integrative financial market”, as Michael Weber, founder of BlockState, puts it.

BlockState also uses the CTF15 to manage a kind of crypto ETF that investors can use 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 are intended to grant investors the usual shareholder rights here as well. We already reported on the BlockState STO in June.

BlockState
In contrast to the STOs presented so far, BlockEstate does not enter into a partnership with Neufund, but with the STO intermediary Polymath. BlockState is a financial company focusing on the US real estate market. Accordingly, BlockEstate would like to use the hardcap of 50 million US dollars to invest in a broad real estate portfolio. The security tokens also represent company shares here, so they should be regarded as securities. The distribution from the profits should take place quarterly.

The token sale as a means of corporate financing is obviously not yet obsolete. On the contrary, if the regulatory authorities, above all the SEC, learn the right lessons from last year’s ICO bubble, token sales could experience a real revival in the form of STOs. After all, reasonably regulated security tokens should finally also attract institutional investors.

Bakkt Announces Bitcoin Futures

23. October 2018 at 14:37Category:Bitcoin price

The crypto exchange Bakkt will delight the market with futures contracts in the future. According to a press release, the futures for the crypto currency Bitcoin are due to come this year. This announcement follows a recent personnel change.

Here you can find the explanation in detail

Bitcoin futures and their influence on the market should have been known since last December at the latest. The announcement and launch of Bitcoin’s futures contracts by the CME and the CBOE (among other things) resulted in strong growth in the Bitcoin price. The signal behind it: We are dealing with regulated, government-approved financial products, so they must be legitimate.

The fact that this does not always have the desired effect for investors became apparent a few months later. The launch of the Bitcoin futures coincided with a (so far) incomparable bull run, which flattened out just as quickly. The air from the bubble escaped with high speed, many were alienated. The accusation of manipulation was not far off – according to studies, the Bitcoin futures had as much a share in the price rise as in the price fall. But as we now know, the brief bubble formation only led to the market now being more mature than before.

Physically Backed Bitcoin Futures

Now Bakkt is entering to bring a new product to the market: physically deposited Bitcoin Futures. In contrast to the common Bitcoin futures, you bet a little differently here:

“These are futures contracts, the fulfilment of which changes the asset (here: Bitcoin) or the ownership right to it the owner. This means that the short position undertakes to sell the previously determined quantity of Bitcoin to the counterparty at the previously agreed price after the expiry of the contract and to transmit it “physically” (if this can be spoken of at Bitcoin). Should the Bitcoin price at this time be higher than the agreed price, the short position has made a loss. The deal for the long position was accordingly good”.

Announcement after personnel change
The physically deposited Bitcoin futures were originally planned for November. Having recently received prominent support from Adam White of Coinbase, the Exchange announced in a press release the final date for the launch of the futures contracts: 12 December 2018.