MOBU- The platform For ICO Launch-"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

Security token represents traditional private security interest. It could represent a share in a company. Security tokens entitle their holders to ownership rights of a company. A security token's value is derived from a tradeable asset; thus it is subject to federal laws regulating traditional securities, security tokens can be utilized to revolutionalize conventional initial public offerings (IPO) and issue company shares, dividends and voting rights over blockchain networks.

Structuring a token as a security leads to legal clarity and protection for both the company and the ICO contributors. But they're still subject to strict regulations. Security token represent traditional private security interest, it could represent a share in a company that pays dividend and interest to its token holders

Tokens can represent any assets that are tradeable, from commodities to loyalty points to even other cryptocurrencies. Tokens are created and distributed to the public through an Initial Coin Offering (ICO), which is a means of crowdfunding, to fund project development.

There are two types of tokens namely :

1. Security tokens
2. Utility tokens

Security Tokens

A security token represents a share in a business or company on a blockchain with the aim of making profits either through dividends from the business or company, or through revenue share from the company business. Security tokens are tradeable assets and are subject to financial securities regulations. And any defaults in abiding to these laid out regulations could results in a costly penalties that can threaten the smooth running of a project or business.

buyers buy security tokens in anticipate future profits or price appreciation or if the token is being bought because it provides some sort of use-value to the buyer. Security token buyers are holding tokens as an investment

Utility tokens

Utility Tokens represent future access to a company’s product or service. The defining characteristic of utility tokens is that they are not designed as investments; utility tokens are exemted from federal financial laws governing securities. A startup and company can sell “digital coupons” for the service it is developing, much as electronics retailers accept pre-orders for video games or other services and products that its offers that might not be released for several months.

They serve as a (future) access to a product or service andcan be best compared to a gift card or software license.

MOBU offers a decentralized organised ICO platform to facilitate the release of compliant security tokens on the blockchain. Real businesses wishing to raise capital by issuing security tokens will build their ICOs on the MOBU platform. MOBU creates an abstract smart contract from which all security token ICOs will be extended. The MOBU abstract smart contract will contain the code that is required by the security token ICOs to conform to the MOBU ERC20 platform and the MOB20 standard to adapt to the ideas and requirements of MOBU. A regulatory friendly token is the only way to allow institutional money to enter the blockchain and a user-friendly platform for trusted ICO`s is the only way to allow non-tech businessmen to participate in the blockchain.

We know that a security token start-up can be a legal, technical and regulatory nightmare. MOBU is a decentralized organised ICO platform that facilitates the release of validated security tokens. There are several legal restraints when a security token is considered. When funds are being raised for a security token a KYC/AML process, a SEC 506 C reg D approval and an FSB CIS CAT 2 licensing in South Africa are required. Every country has different requirements in legislation in terms of this. By partnering with MOBU, cryptocurrency developers will be able to navigate the process with ease. Imagine unlocking that vast potential through a consolidated, enabling and self-regulating platform?

MOBU offers KYC, AML and SEC approval, innovative escrow services to ICOs,bank support to investors when fiat is converted to crypto and smart contract development, and facilitates all other processes needed to raise funds. MOBU’s user-friendly platform offers non-tech companies the opportunity to expand their horizons to launch security tokens with negligible fees, instant settlement times and round-the-clock trading. As an organised ICO platform MOBU solves the problems of cryptocurrency developers who are hesitant and unsure about all the procedures required when offering security tokens to the cryptocurrency community. Various companies in industries such as mining, property development and retail will now get the opportunity to legally raise funds via MOBU.

MOBU creates a network of confidence and trust that will boost economic and operational efficiency. It ushers securities onto a new decentralized secondary market with negligible fees, instant settlement times, and around the clock trading.

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