Share and Token Offering – An alternative to STOs

in #sto3 years ago



How far away are Tokenized securities?

Originally posted on Smarts Blog

With the crypto-investment enthusiasm beginning to cool down, investors are starting to look for more than just novel ideas to put their money on. Not only are they looking for something promising as a product but also a real investment opportunity. ICO’s have yet to provide any other solution for the latter problem than an exchange-tradable utility token, which only works when its issued by a really strong company/platform. 

One solution for that problem would be Security Tokens or tokenized securities, that are generating more buzz every day. If STO’s would become a reality, they would definitely legitimize in the eyes of traditional investors, crypto-assets and the world of crypto in general. It would also give a more promising outlet for cryptoinvestors than the current world of ICOs can be. But as the mess that was coinbases ‘SEC approval’ showed us, we still have a long way to go. SEC are looking to work out regulations for security tokens which may take some time and knowing their view of things, the regulations might be as restricting to small investors as they currently are with securities. 

Hopefully though, that won’t happen, because cryptocurrencies have proven themselves to be here to stay and denying the owners the main promises and benefits that cryptocurrencies were built on, would not only bring more bad reputation on our financial regulators but also just delay the inevitable widespread use of crypto-assets.

Regulation in some extension is good. It will help hold people responsible , as Benebit and Opair have shown us, right now people basically can just take your money and well, not even run. It would be very difficult to get widespread acceptance for crypto when these actions get ignored.   

But what about right now?

There is still a way for a secure cryptoinvestment with regulations making sure the Token Offering organizers act in good faith and for the interests of the investors. A combination of traditional share issuance and crypto tokens. 

  • Decentralized
  • Holds the company accountable
  • Profitable for the investor

European Union allows offering shares of companies for a limited  amount of money without any ‘prospects’, so the crypto investors are  shareholders of the company which shares they purchase. This will give investors the security of knowing that the people behind the company  issuing tokens will be held accountable for their actions and since the profits will be shared, they will be working for the interests of their  investors as hard as their own. 

This is something that Smarts will be doing, being on the opinion  that those who provide us their help and trust should also see a  deserved return on it. 

Smarts is a system that allows for a customer to walk into a store,  grab the product they wish to purchase, scan the barcode of the product  they want to buy and make the payment by using their smartphone. And for  payment customers can also use cryptocurrencies. 

We will start our Presale on 1st of September 2018, with 10% of Smarts on offer, alongside with 25 million SMTs. 

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