The concept of a utility token has been a good dodge against the regulations placed on fund-raising via token sales. The usage of utility tokens as a means to raise capital has been so successful that dozens of ICOs are hoping to raise money through them every month.
Behind the numbers, the reality of utility tokens isn’t as glistening. Platforms and applications that raise funds through a utility token have to create a value for the token. A key way of doing so is by making the token indispensable to the product they make. For example, the tokens can be the form of activating a service, transacting on a specific platform, or buying a digital product. This provision of necessity to access the developed product does make utility tokens useful, but in this effort to make them useful the underlying product’s adoption suffers.
There’s a massive number of tokens floating in the market with little usage beside trading. Realistically, building a good product isn’t going to lead to adoption if the adoption involves a huge inconvenience. In this digital age, people have become extremely addicted to convenience and having to constantly sustain a token balance to use an application is an unappealing concept. Having to access multiple applications that use utility tokens only magnifies the inconvenience by orders of magnitude.
While blockchain technology and its utility are undoubtable, the forced inclusion of utility tokens in the developments that run them has lead to a barrier in the adoption of applications built atop a blockchain. Additionally, the factor that the access to an application can greatly fluctuate in price adds risk to the use of a dApp. Thus, utility tokens have made the adoption of blockchain-based products not only inconvenient, but also risky.
Building a Shift to Security Tokens
If ICOs begin issuing security tokens, the factors of inconvenience and risk attached to product usage are waived. Companies and teams will be able to raise the funds they need while making it possible to not need a unique utility token for every single application they make.
Mobu aims to make this a reality for the Crypto community.
Mobu makes it possible for a wide scale usage of security tokens by making it possible for anyone to issue them by handling the technical, legal, and regulatory barriers. Mobu streamlines the process of issuing security tokens that fulfill regulatory needs and then to issue them to only holders that qualify. It additionally provides access to a network of professionals that play a important role in the issuance of security tokens.
The provision of a security token launchpad attracts a greater interest from institutional investors as, unlike a utility token, it will be easy to grasp the intrinsic value of a security token, thereby making it possible to properly price it at any given point. Additionally, this can also attract the more risk-averse retail investors.
An important factor of Mobu is that its benefits go beyond just raising capital. It can have a major impact on the current adoption scale of blockchain technology.
Blockchain technology has already penetrated the early adopters of society. To reach out to the mass market, the products that utilize this technology need to compete with the convenience factor offered by existing products. This is not possible with the current trend of integrating a utility token. Given the amount of apps an average phone has, an everyday person would need a dozen utility tokens just to access daily essential applications. Enterprises would face an even greater problem.
As Mobu makes it possible for entrepreneurs to raise funds without forcing the importance of a utility token into their product, it can make the widescale adoption of blockchain products a reality.
An eased means to issue security tokens will allow teams to raise funds necessary to carry out their developments while making the developed applications accessible the inconvenience of forcing users to buy utility tokens would be waived.
🌐 Website: https://www.mobu.io/
💡 Whitepaper: https://www.mobu.io/assets/mobu_whitepaper.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=4726508
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