205 Steem Dollars Writing Contest- My Entry

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

Blockchains/cryptocurrencies are one of the fastest growing industries in our history.

As cryptocurrencies go mainstream, more opportunities for investors will spring up. In 2017, startups raised $5.8B and only 48% of these were successful.

In Q1 of 2018 alone, $6.3B has already been raised via ICO's.

If investors have a 52% chance of losing their money, surely they need have measures in place, to ensure that loses are reduced to the barest minimum-if any at all. With so much money on the table, teams excesses need to be checked, and held accountable for their actions.

Unfortunately, most of these investors do not have the assurances needed to get a good return on their investments.

MOBU: A VIABLE SOLUTION, SUITABLE FOR BOTH PARTIES.
MOBU is a decentralised platform through which companies can launch complaint security token ICO’s and attract investors to their projects.

Security tokens are investment contracts, which are bought and held primarily in anticipation of future profits that could be in the form of shares in the company and then the buyer gets returns via dividends or surges in prices of shares. These are subject to federal securities regulations, unlike utility tokens, which are mainly gotten to have access to a company in the future and are not created to act as investments. They are usually access points to services that can be purchased.

The unique trait of being sold as an investment, is what the SEC (in the United States), uses in determining if a token is a utility or security token.

An example of a utility token could be an online gaming hub that sells tokens, in order for users to have access to its platform for their personal use in the near future. In this case, this is not an investment they are making, expecting to make some profit. Yes, they do get some value, but the difference between both is financial gain. This is different from investors putting in their funds expecting returns in the future.

Not all business owners are technical or versed in the legal aspects of running a business. Sometimes, focusing on these, take business owners away from their focus, and could also lead to projects stalling or falling short of milestones.

Being complaint to government regulations and being able to have a successful ICO are the major challenges that businesses trying to raise security tokens face.
With the help of MOBU, these companies are equipped with the right tools and are also assisted in being complaint to government regulations, such as SEC approval for securities, and ensuring that ICO’s are KYC/AML compliant.

Via the platform, businesses no longer have to figure out how to get their projects to the right audience. They are essentially given every tool they need to succeed with their ICO’s and also incentivised to be successful, post-ICO.

Businesses that can seek for investors on the MOBU ecosystem aren’t restricted to cryptocurrency related companies alone. Retail chain stores, sport chain stores, fast food chains and gaming companies are examples of companies that could launch their projects on the platform, to attract investors.

Thanks to MOBU , investors are able to have direct access to ICO’s, and can see them up-close, deciding on which to invest on and which to forgo.

One important role MOBU plays here is that the middle man has been done away with. MOBU also ensures that teams do not have 100% access to funds after the conclusion of the ICO, and investors can choose to exit ICO’s pro-rata after the ICO, if the teams do not meet milestones, as agreed prior to investment. Investors are issued tokens that are more or less shares in the company’s stock.

MOBU
<a is able to achieve this with the aid of smart contracts, which are not just Ethereum blockchain based, but can be used on others as well.

Security Tokens	-	Utility Tokens
It’s a financial investment	-	Utility tokens are not investments
A ROI is expected some time in the future	-	It’s not the case here. What is expected here is value via services
Subject to government regulations	-	Not subject to government regulations

Smart contracts are a set of rules that need to be met, before funds are released.

They also have an escrow service in play, which essentially enables the possibility of effecting this. Partnerships with banks, ensures that the process of converting fiat to crypto is seamless.

MOBU is basically trying to protect the interests of investors, by lowering the bar for entering, and ensuring that investors get the best returns on their investments. They also try to ensure that businesses succeed, when trying to raise funds.

It’s also noteworthy, that these investors come validated.

Benefits of Security Tokens, When compared to traditional shares

• Lower fees as compared to conventional shares.
• Faster execution of deals.
• Larger investor base.
• Automated service functions (smart contracts)
• Lower risk of manipulation by financial institutions.
• Exposure to the free markets.
  

SUMMARY
Security tokens are the way forward, and as time goes on, we will see more businesses adopting this form. MOBU has strategically placed itself to be ready for the expected growth. By addressing real customer pains, it’s only natural that this project will catch on, and it just might exceed expectations.

TEAM

For more information about the team, click here

ROADMAP

ICO NEWS
Pre-sale starts on September 1, 2018, and ends on September 15, 2018. Minumum invetment to get a 25% bonus allocation is 1 ETH.

MOBU’s main ICO holds from December 1, 2018 to January 31, 2018

MORE INFORMATION & RESOURCES:
MOBU
MOBU WhitePaper
MOBU on Twitter
MOBU on Medium
MOBU on LinkedIn