Regulated STO from Germany - Bitbond
Lending and borrowing are on a road of development that is very fast, and there is a need for a business loan globally that cannot be satisfied with banks only. Banks are strict regarding loans, cover regional perspective and they are bounded by national laws for lending. This fact creates space for micro lending on a local level, that is already recognized by several micro banks, but with invention of crypto decentralized money, there is a space for global lending with crypto that is not limited to certain countries or regions.
Bitbond is a german company that have recognized this space, and provide loans in more than 80 countries worldwide, with plans for expansion that sees target of 1 billion EUR loan in four years, which is rise of almost 100 times compared to current level of loans. It is regulated blockchain company by BaFin, which translate to Bundesanstalt für Finanzdienstleistungsaufsicht, or German Federal Financial Supervisory Agency.
Business model consist from provision of loans to business owners through Bitbond platform, that are used for business development by the owner, which pays monthly payments to Investors, that is invested again in Bitbond platform. Platform is charging origination fee to business owners that borrow money and repayment fee to Investors that are receiving monthly payments.
BB1 is security token on the platform, and it is based on Stellar blockchain. Stellar is chosen due to fast and low fee transaction process. Nominal value of the token is 1 EUR. Token holders are bound to receive 4% per annum, in four tranches per year, each time 1% of invested amount is received and 60% of pre-tax profit, that is variable component, based on Bitbond profit and invested amount. 10 year investment that is planned, since Bitbond will buy back BB1 tokens after ten years is providing opportunity of almost 100% investment rise, through passive investment process.
Since Bitbond is the first company to provide regulated security token, this could be a new step in STO offerings and we should expect changes on the market. I expect for Bitbond to make a shift in the market to regulated securities and provision of security tokens without intermediaries, but on a regulated market, where investors are protected by legislation of the regulator. Biggest risk to the platform is volatility on the crypto markets, since lender has to receive crypto loan and convert it to fiat, while during the repayment has to do the opposite to convert fiat to crypto and provide payment to the platform.
Plan is to raise 2.5 million EUR, and Bitbond is currently on 2.1 million EUR raised money, with five days left until the end of token sale.
Bitbond STO website: https://www.bitbondsto.com/
Prospectus: http://bit.ly/2vmcdVV
Lightpaper: http://bit.ly/2vmcdVV
Ann Thread: http://bit.ly/2VrF4Xp
Twitter: https://twitter.com/bitbond
Telegram: https://t.me/BitbondSTOen
Facebook: https://www.facebook.com/Bitbond/
YouTube: http://bit.ly/2UXRMh3
Bitbond STO affiliate link: https://www.bitbondsto.com/?a=DLTAWS
Author: https://bitcointalk.org/index.php?action=profile;u=1573369