MOBU AND THE SECURITY TOKEN ENHANCEMENTS | 205 STEEM DOLLARS WRITING CONTEST - MY ENTRY

This is my entry for the sponsored writing contest organized by @monajam. You can find the contest link here.

_Pixabay

The crypto world has seen great changes over the years. Right after the Bitcoin was introduced, we’ve seen forks of it built using the Bitcoin open-sourced protocol, although there are several others that weren’t forked from it, they have their own blockchain and as well earned the title coin.

That isn’t the bone of contention right now, there is another category of cryptocurrency called tokens and they resides on another blockchain (not theirs). Tokens are easier to create, hence making fraudulent projects easy to come by. After creation, it is being distributed through an initial coin offering, this makes the public aware and of course, some tasks are required to get some of it.

Due to the rapid creation of tokens that ends up being something to worry about, the Securities and Exchange Commission, SEC gave a report informing the public about the categories of tokens that exist. And this is where security tokens arose from.

What are security tokens?

Security tokens are regulated tokens. As its name implies, it has specific federal rules and regulations it adheres to. When a project launches a security token, the token has to be registered during ICO and participants needs to abide by its rules. Failure to do this or participating in an unregistered offering may attract the rising flame of the security laws.

Basically, security tokens are the company’s shares.
As we all know, every interesting and great project has its shortcomings so does the security tokens, especially the aspect where funds had to be raised to issue them. Now, let’s check out the problem faced shall we?

Security tokens still has its problems.

Funds are needed when creating a token, one way or the other, you need people to invest in it, that way you raise funds. But, security tokens placed strict measures on who to invest on these tokens and how it can be exchanged. If these rules aren’t favorable to the investors, they will stay away from it.

Also, it limits liquidity and secondary trading, thus the aim of building a wide adopted platform might not be achieved.

As stated earlier, there are categories of tokens. Hence, security token aren’t the only tokens available. There are utility tokens too.

Security tokens VS Utility tokens.

While security tokens are subjected to rules, utility tokens don’t represent the company’s share, however, they represent future access to the company’s products.

The security tokens are regarded as investments but we can’t say the same for utility tokens. Although the utility tokens bring profits, the price increases when the demand for its products and services increases.

One good example of a security token is the Polymath. An example of the utility token is Sia.

The security token is looking too good to be true but has its shortcomings drawing us back. All this has been solved by a decentralized platform called Mobu.

Mobu

_{Mobu's official twitter logo}

As stated on the whitepaper:

MOBU offers a decentralized organized ICO platform to facilitate the release of comlaint security tokens on the blockchain.

Mobu offers lots of services. So, businesses facing the problem of raising funds with security tokens can now build their ICOs on Mobu and they get to enjoy the services.

Now, how is this possible?

What does it solves?

Mobu will extend all security token released in it by creating an abstract smart contract. The smart contract will conform to Mobu rules and regulations. Mobu provides a user friendly platform and less rules, hence investors will be keen to participate in the token collection and purchase.

What it solves doesn’t stop here.

It rebrands the escrow services and in fact made it more secured. It brought out a new innovation that will glue the interest of the investors and keep them safe. The investors will able to exit the ICO if the issuer doesn’t adhere to their goals.

Mobu also tightened its security by restricting tokens only to verified users. This users will as well undergo the KYC registrations. And nevertheless, Mobu deployed a network of authorization center for a new standard called KYS (Know Your Supplier). So, the users and the suppliers get to know their selves.

Mobu also its own tokens. These tokens are available for users to access their services. They can choose to spend it or access these services. Since the services Mobu brought in is quite tempting, users will hold on to it rather than spend, and this will make the demand for the token high as supply will be scarce.

Talking about the token…

The Mobu token

_{Retrieved from the website}

It’s the token for the Mobu platform. It is built on Ethereum but it’s an open protocol meaning it is available and can be sent and retrieved on other blockchains. Mobu isolates the storage of each security token ICO and thus prevent system hacks.

Mobu will airdrop 1% of its tokens, 3% will be awarded to bounties, 4% is meant for advisors, 12% for the team members while the rest is made for fund raising.

Welcome to the world of security tokens.

Welcome to the world of Mobu.

To Learn more...

Here are useful links for further reading and understanding of the Mobu platform.

Website

Whitepaper

Medium

Twitter

Linkedln

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@afolwalex