So there's a lot of assets such as real estate start-ups, VCP funds, that are illiquid and security tokens give an opportunity to make them liquid assets, so that sometimes will bring a 20-30% liquidity premium in the market.
And also, there's a global pool of capital that you can tap with security tokens that has been untapped.
It all started with kind of the prediction. The next mega-trend in crypto will be assets migrating to the Blockchain in the form of tokens, so ... real estate bonds, private equity, pretty much any security is better denominated as a token than it is as traditional forms of ownership like stocks, LP shares, units. This is the future, not shared certificates and filing cabinets. We're excited to be at the forefront of this movement.
When I first started this journey for the ICO eight months ago, the first thing I told my attorneys at Wilson and Sydney was, "Don't dress up the pig and make it sound like a utility." This is a security. This will ... every token will be security.
This is why I'm here at the PolyCon because I think, honestly, the ones that did it before they did it wrong, the ones that didn't do security. So, yes, there is a utility aspect to it. You know, people, the money transfer operators that use the tokens are really using it for utility purposes. But from a perspective of the law, there is no such a thing as a utility.
You're either security or you're not security. And I'm thinking that if you're selling any of these ICOs that sell tokens, the product is not done yet. That's security.
Well, I mean, for a couple of years now, the crypto space has been very much in a gray zone, too. I do appreciate this. That we are moving forward in this direction in a way. If we don't compromise and sacrifice the morality and the dynamics of the crypto space, you know, and a decentralization of its nature, then it's great.
I believe that any serious project of a company, having a token sooner or later will become a security token. It's the sign of the times and I think it's necessary too.
I definitely think that security tokens are going to be a new trend going on. It's a really interesting proposition, but it's also really hilarious because before no one wanted to be a security, they wanted to just be a utility token. Now it's everyone probably is going to want to be a security token, so it's a very different kind of shift.
I'm actually really excited about companies that already have partnership deals and also a seamless integration of tokens.
You know, even if you reason in terms of European legislation, which is more liberal, what you see now on the desk of a low firm like us, which is now becoming visible in terms of specialized firm and Crypto Finance is not just duty tokens but actual security token where the tokens are designed to be a security. Regardless of your interpretation, even European low, it's going to be a security, you know?
For instance, tokenizing funds. We've been talking about tokenizing funds here over about the last two days and in deed we see that. Really stayed, for instance, is something that will be tokenized more and more.
Securitization is important in a legal context in that in order to transition from where Blockchain and Cryptocurrency began to where it's going, it's an absolute necessity that at this point that certain token offerings, tokens being securitized follow a legal framework that will protect both the issuer and the individuals and institutions that actually purchase them.
SecurityTokenAcademy.com is a platform for information about the new world of Security Tokens. We are not a registered broker-dealer or investment advisor. We are not a Security Token or blockchain platform, nor can you purchase or invest through our website. We do not offer investment or purchase advice; nor do we endorse or recommend purchases or investments in any Security Token, and we don’t tell you if any purchase or investment is suitable for you. Additionally all investments entail risk, and investments in start-ups as well as Security Tokens involve a potentially greater risk.