The Future of Security Offerings is definitely on the Blockchain!
So what is a security? You might ask, well according to Investopedia a security is a fungible negotiable financial instrument that holds monetary value. It entitles the owner to shares and ownership positions in publicly-traded corporations. Needless to say that the holders of said securities are expecting a return on investment and then some for their investing efforts.
Once Ethereum was launched, it opened the gate to democratising the process of issuing securities with the help of the Smart Contracts module. Studies show that 98% of the ICOs launched in the past years have utility tokens as their offering, many regulatory bodies warned investors that they might invest in illegal security offerings and thus potentially lose all of their money.
Unfortunately, cryptocurrencies do not represent legal tender and countries around the world are not sure how to regulate them. Needless to say that trying to issue security offerings with the help of a cryptocurrency will prompt a quick visit from the SEC and the immediate shutdown of the entire operation.
Introducing MOBU: Crypto-Securities done right!
The team behind MOBU have created a decentralised ecosystem that aids ICOs on an end-to-end basis to develop law-compliant security token offerings. Thus every legal, technical or regulatory measure is taken care of by the MOBU platform! With the adequate know-how in the securities sector, any uncertainty or problem can be addressed with the help of a veteran team in the security offering industry!
Awesome! I have a company, and I want to raise capital through securities now what?
Once the registration form is completed, MOBU will create an abstract smart contract through which the security tokens will be issued. At its core stands the ERC20 architecture that represents the bare bones of the project and the MOB20 standard required to adapt your business to the MOBU platform. This ecosystem strives to become the one-stop-shop for all of your security offering needs!
Why should I opt for a security ICO instead of a traditional IPO?
Well for once, the registering fees are significantly lower than your average IPO. With the help of the Smart Contracts technology, middlemen such as bank institutions and brokers are taken out of the picture. This architecture will reduce the registering complexity, overall required paperwork and the securities management process.
Another significant advantage would have to be the immediate transfer between the issuers and buyers. With the help of the immutable ledger, the transactions can be done safely without the need for a third party broker. As the cryptocurrency phenomenon rises with each year that passes, a crypto-security means that you have access to a much broader investor base. In contrast to this, in the US, only accredited investors and institutions can purchase these type of securities. Thus introducing the element of competition will ensure sustainable long-term growth!
If you are interested in participating by purchasing MOBU tokens, you can do so until the 31st of JAN 2019. The standard price per token is pegged at 0.15 USD.
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@zzdenis, I'm waiting for the continuation of the topic