A new competitor is about to enter the burgeoning digital securities sector. ABE Global announced their plans today for an expected mid-2019 launch of their trading platforms.
ABE Global is based out of Atlanta. However, the company operates branches in various regions of the globe. These extend from Malta to Asia.
A Unique Approach
What is unique in the way ABE Global is approaching the market is their use of depositary receipts (DR). A ‘DR’, is a certificate issued to investors, which represents shares in a foreign company. By utilizing this asset ‘wrapper’, investors can now gain exposure to a greater amount of opportunities, in many different economies.
This ability will be realized through the progressive nature of Maltese finance. Any asset listed on the Maltese branch of the ABE Global platform will become accessible through DRs, on the Asian and American branches.
While DRs are commonplace within traditional finance, this will mark the first time that they are being used within the digital securities sector.
ABE Global CEO, John Pigott, took the time to speak with CoinDesk regarding their platform launch.
Speaking on the benefits of their methodology, Pigott stated,
“It offers a very clear departure from the era of ICOs, and it appeals to one of the global advantages of tokens…For example, there are a lot of Singapore investors that would like to hold the U.S. real estate, and a lot of American investors that would buy real estate in Singapore.”
ABE Global is a new entrant to the world of blockchain. Despite the age of the company, and the industry for that matter, ABE Global touts vast amounts of financial experience through its founding partners.
ABE was founded in 2016 by the following trio of professionals:
With the allure and potential of digital securities, it should come as no surprise that there have been multiple companies entering the market in recent months. Below are just two of the most established thus far. Each of these is ahead of the pack, as they already support secondary market trading of security tokens.
In Other News
Trying to appeal to global markets is a difficult task. In doing so, regulations of various standards must be adhered to. This has led to multiple companies developing innovative ways to give investors access to global markets. Aside from ABE Global, another company to have done this is the recently launched DX.Exchange. While their delivery may differ, each of these companies has taken unique routes to achieve their goals. Check out the articles below to learn more about DX.Exchange.
VeVue Signs Partnerswith CBX for Token Launch
The blockchain-based social media platform, VeVue announced plans to host an STO in the coming weeks. The company intends to expand the platform’s capabilities with the funds raised. Now content creators have a more lucrative alternative to consider moving forward.
News of the company’s intentions first broke via an October 14 press release. In the post, the company announces its new strategy and partnership. As part of the firm’s new crowdfunding approach, VeVue partnered with the hugely popular CBX exchange.
For its part, CBX will be responsible for the sales, token issuance, and distribution of the VUE token. CBX is one of the largest crypto exchanges based in the Middle East. The firm operates a fully compliant EU exchange. Developers integrated both AML and KYC protocols directly into its trading platform.
CBX recently launched a campaign with Alibaba competitor GoJoyin in which the platform secured over $10 million in funding. The experience gained in this campaign will be critical for VeVue STO’s success.
The VeVue STO will commence on October 28, 2019, at 4 pm PST. Interestingly, the event is scheduled to only last 48 hours. CBX intends to issue 5 million VUE tokens to qualified non-US investors. Vevue also announced that there will only be 100 million VUE tokens in total available to investors. Of these tokens, 35 million are reserved for investor purchases.
Vevue and CBX Unique Strategy
CBX and Vevue have a unique strategy for their crowdfunding efforts. The company intends to host an STO monthly moving forward. Additionally, these auctions will be Dutch-style. Basically, the official token price is set after taking in all bids.
Highest-Price VeVue STO
This strategy enables the firm to receive the highest price for the total offering. For example, investors place their bids which include the price and quantity they desire. The firm will then accept the top 5 million bids for the tokens.
VUE Token Benefits
VUE token holders receive a portion of gross revenue collected via the VeVue social media app. Consequently, investors actively earn from VeVue’s ecosystem. The App provides content creators with a revenue-generating outlet. Here, users can create and monetize content such as videos easily.
VeVue Transaction Fees
Vevue charges a 5% transaction fee on the monetized content. This fee then enters into the dividend pool from which STO investors receive payments daily. Importantly, dividends are paid in VUE tokens. This unique strategy encourages users to create high-quality content to earn more tokens.
Next Level Social Media
Traditional social media doesn’t allow users the opportunity to earn from their content contributions. In fact, the current social media giants provide content creators with zero payment for their efforts.
Social Media Heat
VeVue’s timing is impeccable as social media giants such as Facebook continue to confront lawmakers over a myriad of concerns. Facebook, in particular, appears to be in the target of regulators after announcing plans to issue its own native cryptocurrency called the Libra.
A Better Social Media Alternative
VeVue appears to have unlocked a better way to social media for everyone. Providing users with an opportunity to earn tokens for their content is a smart concept that has proved to be a great alternative in the past. You can expect to hear more from VeVue in the coming weeks as its STOs hit the market.
NBA Quickly Shuts Down Dinwiddie Contract Tokenization
Not So Quick…
In retort to the highly publicised decision by Spencer Dinwiddie to tokenize his contract, the National Basketball Association (NBA), commented in a conversation with the New York Times.
Unfortunately for Dinwiddie, it would appear as though he is fighting an uphill battle in achieving his goals. The following is what the league has to say on his plans.
“According to recent reports, Spencer Dinwiddie intends to sell investors a ‘tokenized security’ that will be backed by his player contract. The described arrangement is prohibited by the C.B.A., which provides that ‘no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract.’”
In response to this decision, Dinwiddie did not seem phased. Again, speaking with the New York Times, he had the following to say.
“When I was on the phone with the league, I told them it wasn’t an assignment. And they invited me to sit down with them and explain the offering, which is what I’m going to do.” He continued, “What better way to be invested in a player as a fan than to have some level of skin in the game,” Dinwiddie told The Athletic. “With the way mine works, if I play well in that player option year and we split the profits up the first year of my new deal, it greatly appreciates the return on this investment vehicle.”
While Spencer Dinwiddie represents the first athlete to actually attempt the tokenization of his contract, the idea is not brand new. There have been instances in the past where the idea was floated, to no avail.
If successful in his mission, Dinwiddie is, potentially, on the cusp of unlocking new forms of financial flexibility among athletes. For those looking to take an active role in securing their future, tokenization has the potential to make them more money. Interestingly, this stands to benefit the league, as well, as it opens a brand new avenue of fan participation.
At age 26, Spencer Dinwiddie is a 6’6” point guard for the Brooklyn Nets. A public proponent for blockchain technologies, this rising NBA star looks to help himself, and his peers, through financial flexibility.
Dinwiddie recently signed a lucrative contract with the Brooklyn Nets, which will see over $34 million paid out over 3 years.
In Other News
Over the past few weeks, we have touched on the topic of tokenizing sports contracts multiple times. The announcement, and subsequent release of details surrounding Spencer Dinwiddie, can be found in the following articles.
NBA Guard Spencer Dinwiddie Tokenizes Contract
Sports fans could get a taste of blockchain tech much sooner than they planned thanks to one ingenuitive player’s strategy. This week, Brooklyn Nets guard, Spencer Dinwiddie announced plans to tokenize the first year of his contract. The news demonstrates how tokenization continues to create new asset classes in every market.
Dinwiddie seeks to raise $13.5 million to launch the DREAMS fan share platform via an STO. The concept is simple. The platform allows fans to own a share in their favorite entertainer or athlete’s career. Basically, you purchase a share in the profit-generating potential of a particular entertainer.
Dinwiddie – Tokenized Contracts are Better for Players
Players often receive large multi-year contracts. In many instances, especially the NFL, only the first year of the contract is guaranteed. Consequently, when a player gets injured or retires early due to unforeseen circumstances, the player loses the balance of the contract.
Tokenizing the contract allows players to get more funds upfront which allows them to do more with their earnings. Dinwiddie believes this strategy can give entertainers a more stable financial opportunity when compared to the traditional business structure.
What Do Fans Get?
Investors receive SD8 tokenized shares. These shares represent a piece of Dinwiddie’s contract and are named after his initials and jersey number. Each SD8 token represents a share in the first year of his 3-year $34.5 million agreement with the Nets.
Investors get paid dividends for their investment directly out of Dinwiddie’s bi-weekly paycheck. Importantly, investor’s earnings are secure because the Nets guarantee the first year of his contract. Also, Dinwiddie explained that he would give investors the option to extend for additional years if the strategy proves successful.
The shares have several fan protections integrated as well. For example, if a player retires early, they forfeit their earnings to their shareholders. Consequently, the player would leave the league with nothing.
Exclusive Investors Only
Unfortunately, most NBA fans won’t get a chance to buy SD8 tokens. Only accredited investors may participate at this time. Accredited investors can show at least $1 million in the bank. Notably, the minimum investment is $150,000.
Speaking on his concept, Dinwiddie pointed out some key reasons behind the maneuver. For one, he believes that SD8 tokens provide investors with a safer alternative than traditional fiat during global recessions. He envisions a day when all athletes use this strategy to better hedge their earnings.
Dinwiddie spoke of a near-future where fans could trade contract shares of different players. Imagine trading your Dinwiddie contract share for a share in LeBron’s earning potential. The potential for this new asset class is extraordinary.
Paxos Trust Company
The Paxos Trust Company partnered with Dinwiddie to bring this unique strategy to the market. Paxos was the first regulated trust company to enter the blockchain sector. The firm handles the custody, escrow, and payment of investor’s dividends. As part of the concept, investors receive dividends in the Paxos stable coin – PAX. PAX is traded on numerous exchanges including Binance.
Dinwiddie is a Blockchain Pioneer
One thing is for sure, no matter how Dinwiddie’s NBA career turns out, he is always welcome in the cryptocommunity. This out-of-the-box strategy could provide a revenue boost to both players and fans very soon. At the very least, you got to give it to him for creating more liquidity in the market.