This is my entry for the sponsored writing contest organized by 
Throughout history, there have always been revolutionary ideas. But those who lack the vision to embrace the future invariably get left behind.
Allow me to introduce, MOBU. A brand new venture in an almost untapped marketspace, that aims to bridge the gap between investors, businesses, ICOs and security tokens, all while conforming to government rules and regulations.
There's much to discuss here, however, I aim to breakdown the following from a high-level perspective, so that you can successfully learn the in-and-outs and leverage the MOBU platform.
Utility Tokens vs Security Tokens
ICOs, STOs and Business Challenges
MOBU: An Advanced & Elegant Solution
SECTION 1: Utility Tokens vs Security Tokens
Part 1: Coins and Tokens
In the cryptocurrency space, exist coins and tokens.
Coins can be considered a virtual currency with their own native blockchain. They represent a store of value and a unit of account, meaning, the value of a coin is as you see it in the real world in everyday situations. Some examples of coins are Bitcoin, Litecoin and Ripple.
Tokens, essentially, can be used to gain access to specific products or services (utility tokens), or they can represent a form of equity within a business (security tokens). It’s important to note that tokens are deployed/created on existing blockchains, such as Ethereum, Waves and Neo (amongst others), which is contrary to how coins come to “existence”.
Part 2: What’s the Difference?
We are now at the heart of this topic! Let’s define the difference between utility tokens and security tokens, with examples.
| Grants access to a decentralized app (dApp) that could be a product or a service. | Allows an investor to own shares/equity of a company, with the possibility to even earn dividends. |
| Easy to purchase from a multitude of online exchanges, using major cryptocurrencies or fiat money. | Subject to government rules and regulations, causing grief to both businesses and investors alike. |
| Grants you no ownership in the company and is not backed by any real-world asset. | The electronic equivalent of owning shares of a company on paper. |
One example of a utility token is the Civic Token (CVC). These tokens are based on the Ethereum blockchain. Civic is defined as a “Secure Identity Ecosystem”. Using CVC tokens, a service provider (such as medical, financial, legal, etc.) can gain access and authenticate a user based on electronic signatures and virtual identities (as well as other factors).
An example of a security token is the offering made by Lottery.com (formerly AutoLotto). In this case, as an investor you could take part in their Security Token Offering (STO) and expect to earn yields/dividends based on gross raffle ticket sales. This is a very firm example of a security token, as the token itself serves no other purpose than to (potentially) earn you future returns based on the success (or failure) of the business.
SECTION 2: ICOs, STOs and Business Challenges
Jumping straight in, an ICO (Initial Coin Offering) is the online, electronic equivalent of a real-world IPO (Initial Public Offering). Simply put, businesses launch ICOs to raise capital and take their business services & potential to the next level, just as with an IPO. Anyone can take part of an ICO, and many have made huge returns as a result. However, a new form of ICO has come to light and with it comes restrictions and challenges. Welcome, the STO (Security Token Offering)!
An STO is very similar to an ICO, but inherently is defined as a business offering security tokens to their investors. As with the example above with Lottery.com, investors take part in STOs with the high hopes of realizing future gains based on business profitability.
The business challenges here refer directly to government laws, rules & regulations. There are many processes to be followed and the SEC (Security and Exchange Commission) does not look favourably on companies that want to raise funds this way (due to past scams!). Some of the restrictions imposed by the SEC greatly affect who can be an investor and partake in STOs, which in turn, causes great uncertainty with the business as it could affect funds raised (or lack thereof).
SECTION 3: MOBU: An Advanced & Elegant Solution
Part 1: MOBU
The securities market is a multi-trillion dollar industry and it’s missing a vital service for businesses to organize and launch successful STOs.
Enter, MOBU.
MOBU is a decentralized, smart contract platform that is powered by the Ethereum blockchain. At the heart of their offering, any business that wishes to hold an STO will be able to with MOBU, and they may rest assured that their STO will conform to all government rules & regulations, leaving them to concentrate on their core business.
There are two sides to an STO (businesses and investors) and MOBU offers protection and assurances on both sides. Let's go through them.
| KYC (Know your customer) approval | Escrow accounts |
| AML (Anti-money Laundering) approval | Legal Support |
| SEC approval | Account portals |
| Authorized investors | Bank support |
| Fewer administrative costs & fees | Decentralized exchanges |
For investors, one of the most important features of the MOBU platform is their escrow account service. Basically, the funds raised via STOs are held in escrow accounts, to be released to the business on a prearranged schedule. If the business fails to meet their roadmap milestones or decides to veer from their core business to explore other ventures, you have the option to pull your investment, at pro-rata. This minimizes your exposure to risk and gives you peace of mind.
Part 2: The MOBU Token
Although costs and fees are heavily reduced in MOBUs ecosystem, there still are costs and fees! MOBU plans to handle this by way of a utility token they call MOBU tokens. These tokens can be bought and sold at many popular exchanges and will be used to cover services costs, such as transaction fees. These tokens will be used primarily to facilitate the release of security tokens on the blockchain.
In Conclusion
According to the roadmap, the MOBU platform will be offered in beta form on July 1st, 2019. That’s just about one year away, and I for one, am very excited! Getting authorized investors for STOs is essential to the platform and to expedite that process I hope to see Civic (CVC) get utilized here, as they are experts in identity security and approval.
Also, the team at MOBU seems very credible, and their board of advisors even more so. I believe MOBU will succeed and I look forward to becoming an investor in the near future.
REFERENCES
https://www.mobu.io/assets/mobu_whitepaper.pdf?80172489074
https://www.civic.com/
https://www.nichemarket.co.za/blog/civic-coin-cvc/
https://bitcoinexchangeguide.com/civic-identity-verification/
http://fortune.com/2018/05/18/security-token-harbor-ceo/
