We had reported this week about the company’s Foundation Group and the start mark. Both companies have managed to get a publicly available Security Token Offering (STO) by the German financial Supervisory authority approved. Why is it after the first German STO of Bitbond has taken so long and why traditional Assets such as real estate to fulfill an important function in the crypto adaptation.
By Sven Wagenknecht
26. July 2019BTC$9,785 of,00 -1.66%part Facebook Twitter LinkedIn xing mail
in March of this year, it was announced that a Public STO has been approved by the German financial authority, BaFin, erupted with euphoria. Hardly anyone had expected that the than strictly applicable the BaFin as one of the first financial approved regulators in the world with a substance that is also open to retail investors. The expectations of the STO of the Berlin Blockchain startups Bitbond were great. Also, it was assumed that many more Start-ups will follow the example of Bitbond. The flood of approved securities prospectuses from, however, remained, as well as the Funding success of Start-ups Bitbond.
The silence after the first STO
Almost five months it has lasted well, until two other companies, virtually at the same time, to obtain the permit, a public STO. If the Bitbond-a securities prospectus in retrospect, but not as a suitable template has been proven or other factors have prevented a STO permit the shaft to be seen. Also unclear is whether the business model of Bitbond, or rather the Token embodiment may be cited as the reason for the reluctance on the part of investors.
Blockchain platform vs real estate
the difference is Particularly apparent for the Bitbond STO is, if you look at the STO of the Foundation Group. Detached from another embodiment of the prospectus, the Foundation Group to tokenized real estate shares and not to the financing of an innovative Blockchain-a platform. While Bitbond to a high-risk financing, such as in the case of all Start-ups in the crypto area, which includes the Real Estate Token of the Foundation Group of investors claims to real estate. At the Foundation Group, the type of financing via Token or STO and the resulting benefits are so innovative. Not, however, to be financed on the capital will be collected (property of Germany).
It is important, therefore, to measure with a double standard. Is to say, whether already existing real assets such as real estate or ships are to be tokenized, or whether a company is a Token for the self-financing of capital in the token-anonymous way, i.e. through securities, collects.
crypto-adaptation by traditional assets
those Who invest for the first Time in his life of independently in the securities, you should begin with less risk of securities start. Rather than invest in a complex leveraged certificates, to provide for the first steps in sound Stocks or bonds. The exchange of the medium, ergo the securitisation in Token, the majority of investors are also facing a new challenge. Even the most experienced investors, need to be examined once with the new Medium of the Token. This is especially true for institutional investors that have, understandably, other risk scales, as small investors, acting on their own account.
Accordingly, it can be especially traditional assets, which can serve as an introduction to the world of crypto-Economics. Therefore, tokenized real estate can fulfil an important bridging function from the traditional financial sector to the crypto market.
STOs: Why it’s more medium-sized companies
we need also the enormous importance of small and medium-sized enterprises for the perception of crypto-IPOs shows. Start-ups of nature from high-risk Investments is. Therefore, it is obvious that you are the first, the unconventional funding measures to try. Therefore, it is not surprising that it is mainly the Blockchain-Start-ups which have so far been of the form of financing of a STO use. So important to the pioneer’s role, there must be but just as traditional medium-sized company, the opening of the progressive Form of raising capital.
Just a medium-sized company with a solid business are much more likely to be able to reservations about the Medium of the Token address. This could also be an important indicator for the adaptation degree of STOs. The more Mature companies with a conservative business model and are willing, shares in the company to token to authorize, the sooner you can classify a Token or STOs, as a well-established financial market Standard. Germany in particular could benefit, with its large middle class more than other Nations, and to be a global pioneer. In addition to the Foundation Group and the start mark, there are a few more companies that are tapping into the STO market. So, for example, cash link, block state, or Black Manta Capital Partners, which will perform in the next few months, your own STO or the other companies would be here. Such a long losing streak, as after the Bitbond STO, there will no longer be so in the future.
How long will it take for STOs in the width than the Standard? In an Interview with the Foundation Group founder Robin Matzke estimates that it will take around five years to become established, the tokenization of Assets an industry standard.
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Luxembourg: the first sale of real estate via the Token Federal government: the draft law provides for strict regulation of the German Bitcoin exchanges prior to the Interview to the Public STO the Foundation Group, said: “In five years, tokenization is the default”#BaFin#Security Token#STO
