Blockchain in general is a fascinating technolog, with so many applications, although this channel is primarily about Blockchain and it's ability to disrupt the music industry, it is also prudent to look at Security Token ICO's that could drive crypto investment in the Music Industry. So Venture Capital firms or funds invest in early-stage companies in exchange for equity, or an ownership stake, in the companies they invest in. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. The start-ups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology (IT), clean technology or biotechnology. This is the traditional business model which has evolved over the last several decades and in recent years with the advent of blockchain and crypto the startup landscape has dramatically changed to adapt to the new token economy.
“A security token is simply a cryptocurrency token that represents the ownership of an asset. Think of this like a stock or equity ownership in a public company. Investors in stocks expect profits in the form of stock price appreciation and/or dividends. However, equity ownership does not include utility. This is essentially how a security token functions as well. Security tokens provide ownership of an asset and returns but NOT utility (e.g. using cryptocurrencies to buy gifts, share power, etc.)
Security tokens are regulated offerings involving the ownership of an asset, usually for accreditors investors with extensive KYC visibility, and are issued via a Security Token Offering (STO). This is in contrast to their utility token counterpart which is conducted through unregulated crowdsales with no ownership in a company or any asset.” Source - cryptovest.com
ICO’s (Initial Coin Offerings) from late 2016 through 2017 were offering tokens in exchange for Bitcoin/Ethereum and other main Crypto currencies based on ideas for platforms that had little or no existing business with in many cases no proven concept. Using the Whitepaper concept they would detail the business model, token distribution, tokenomics incl. private sale, hard and soft cap information. The above concept does however increase the risk of investment, as there have been many plagiarised Whitepapers and fake or weak ICO’s which in turn has resulted in fraud and theft of investors money.
The above issues have opened up opportunities for niche companies to create a more secure and verified solution to give investors better insights into potential investments in ICO’s. This is where DESICO (Decentralized Ecosystem for Security ICOs) enters the market with their solution for Security Tokens in full compliance with the law and is set to disrupt the $155 billion global VC market. Based in Lithuania which is considered a relatively crypto friendly government which is an advantage when developing a security token project on this scale.
So let’s dig into the solution that DESICO will provide which is a secure platform to buy, sell and issue security tokens first and foremost. They will offer clients cost-effective ways to launch a Security Token ICO as well as manage the post-ICO period. By providing the infrastructure to manage a 360 approach to launching an ICO. It is important to note that they already have a European e-money license and will create a dynamic engaged community that will support the entire ecosystem.
DESICO is continuing it’s drive to release security tokens into the mainstream by spearheading the mission for a rapidly emerging asset class and with the recent announcement of the endorsement by the Ministry of Economy in Lithuania add that to endorsements from Enterprise Lithuania, Chairman of the Nordic Crowdfunding Alliance and Enterprise Ethereum Alliance, the company is solidifying their reputation in the market.
ICOs wanting to be listed on the DESICO platform are required to contribute a specific amount of DESI tokens considered as platform fees. The strategy deployed is that as DESICO grows, more tokens will be listed on their exchange, increasing trade trade volume. Therefore as the transaction volumes increase, the demand for the DESI token will also increase. Exchange trading fees for token holders above a certain threshold could benefit from fee exemptions, a clever strategy again to favour investor commitment.
There are several core use cases for security tokens some listed below:
Real Estate - A unit of real estate can be tokenized and distributed as an investments, similar to REITs (Real Estate Investment Trust)
Financial Instruments & Investments - Companies can tokenize and issue stocks and bonds in return for ownership and/or a return on assets
Venture Capital - LP shares can be tokenized and distributed to investors
Commodities - Tokenizing assets like gold and silver for investors that are backed by physical assets. Source - cryptovest.com
DESI Token meta:
Ethereum based ERC-20
The crowd sale starts on August 20th 2018 and is due to end on November 1st 2018
Tokens for sale: 409,852,000
Soft Cap 3,500,000 USD Hard Cap 32,000,000 USD
Deposit Method Ether (ETH)
Total Supply 803,631,373
For more info about the DESICO ICO and Whitepaper, refer to https://www.desico.io and join the dynamic community on their Telegram channel: https://t.me/desicochat
Authored by Jonathan Finberg, crypto enthusiast, investor and cryptoprenuer.