Security tokens received a big boost this week after the South Korean news agency Yonhap revealed Bithumb’s latest crypto intentions. According to anonymous sources listed in the report, Bithumb plans to open a US-based security tokens platform in the coming year. The move marks a continued push by traditional crypto exchanges into the security token market.
The advantageous project involves a partnership with the US-based crypto focused crowdfunding platform SeriesOne. For their part, SeriesOne plans assistance in the areas of crowdfunding and technical support. Speaking to Yonhap, an unnamed SeriesOne executive discussed how his firm actively sought out Bithumb after researching the company’s accomplishments in the crypto sector.
SeriesOne officials pointed out the growing number of users seeking asset tokenization. Officials also discussed how this trend is now reaching global status. SeriesOne received major media attention after the SEC accredited the firm earlier in the year.
Bithumb Mystery Platform Details
Currently, the platform remains nameless with little details publicly available. So far these details include that the services provided are exclusively for security token users. Executives announced that the exchange’s release date is 2019 Q1.
South Korean-based Bithumb is the second largest exchange in the country. The platform entered the market in 2017 and is a subsidiary of BTC Korea.com Co. Ltd. The exchange offers fiat to cryptocurrency trading. However, the Korean won is the only fiat currency accepted.
In June 2017, Bithumb was the victim of a hack. The hacker breached an employee’s computer where they located access information for the exchange’s servers. It was reported that the hackers made off with billions of won.
SeriesOne entered the market on Nov 22, 2017. The company specializes in blockchain-based crowdfunding strategies such as ICOs. The company is regulatory compliant. It’s no doubt that Bithumb intends to tap into SeriesOne’s plethora of experience in the asset tokenization sector.
Bithumb executives look to corner key exchange markets in the coming months. The company recently unveiled plans regarding a decentralized exchange platform known as DEX. The exchange features Peer-to-Peer trading. To mark the occasion, Bithumb offered free transaction fees and a well-publicized Airdrop event.
Security Token Adoption
Security tokens require users to adhere to strict AML and KYC laws. Both security token issuers and holders must reveal their identity to the government. In this way, security tokens bridge the gap between traditional investments and the cryptocommunity. Many believe that security tokens are the natural progression of the crypto market. Security token requirements better fit large-scale investments from traditional firms.
Positioning for Greatness
Bithumb is a veteran in the crypto space. The developers behind the platform helped shape the current state of the cryptomarket and it appears that this trend is set to continue in the coming months. It will be interesting to see Bithumb enter the American market, and analysts predict that the move could usher in a flood of new security token exchange platforms.
For now, all eyes are on Bithumb as the company continues to display a firm understanding of the wants and needs of the crypto community.
Leonovus pivots from ICO to STO for Galaxa project
Leonovus to Host STO
In a recent announcement, Leonovus has indicated that they have had a change of heart regarding their upcoming ICO. This change will see the company host a security token offering for their Galaxa project instead. This STO will see the issuance of GAXX tokens. The token will not only represent equity within the Galaxa project, but be used as a platform currency as well.
The original plan was to see Leonovus issue a contract that could later be converted into a security token. Upon conversion, the security token would represent equity within Galaxa. This method is known as a ‘Simple Agreement for a Future Token’ (SAFT).
Due to the rapid development being seen within the digital securities sector, Leonovus will now be selling security tokens directly. This is made possible by the launch, and planned launches, of various Security Token Exchanges (STEs). Due to these launches, GAXX tokens will now have a home to be traded on upon issuance.
Galaxa refers to a blockchain based, cloud storage platform that is being developed by Leonovus. The platform was announced in November of 2018. The GAAX tokens to be sold through the aforementioned STO will fund the continued development of this project.
At the time of announcement, Leonovus CEO, Michael Gaffney commented on the Galaxa project. He stated, “Galaxa is much more than most typical ICOs or STOs in that it will incorporate the Leonovus Smart Services blockchain innovation, along with a global enterprise-class marketplace that embeds Leonovus’ hyper-secure software-defined cloud storage technology which is in production today. The marketplace provides a platform for thousands of cloud services developers who are locked out of the current market because of the oligopoly. This is also great news for the enterprise as there will be more choice for cloud service products and less cloud vendor lock-in.”
Leonovus is based out of Ottawa, and was founded in 2010. Above all, Leonovus strives to provide storage solutions on an enterprise level. Leonovus is able to offer multiple variants of storage, ranging from on-site to cloud.
Leonovus CEO, Michael Gaffney, spoke on the decision to host an STO. He stated, “Security Token Exchanges did not exist in December 2017, which is why we chose the SAFT process at that time. Over the last few months, several third parties have launched STEs in various jurisdictions, and more are planned for launch in 2019 and 2020. Currently, we are reviewing the new STEs that are in the USA, Singapore, Switzerland and Malta. The development of STEs is welcomed as it simplifies the overall process regarding the listing and trading of the GALAXA security token on a regulated exchange. Because of the change in investment strategy, we are now targeting the end of Q1 2019 to close our first investment tranche.”
Issuance Receives Investment from MD of Slim Ventures
Issuance receives timely Investment from MD of Slim Ventures, LLC
It has just been announced by Issuance that they have received another investment. This marks one in a series of investments that have taken place over the past few weeks.
Mike Bishop was responsible for this move – the Managing Director of Slim Ventures. This is not Mike Bishop’s first foray in to the world of blockchain. For instance, he has previous experience in advising a variety of projects which have gone on to experience fantastic growth. One such example is the crypto-exchange, LAToken.
With knowledge gained through his past experiences in the blockchain industry, it is unsurprising to find that Mike Bishop has invested in Issuance. After all, they are shaping up to be a major player within the rapidly developing digital securities sector.
Mike Bishop JD, stated,
“Having acted as an advisor for several token offerings, I am particularly excited about the advantages that tokenized securities promise in creating liquidity to non-public investments, and with that, understand the importance of deal marketing to make liquidity a realization…As a deal marketing platform that connects and engages digital securities issuers and interested investors, Issuance is well-positioned to facilitate the exposure and investor pools necessary for tokenized securities to succeed.”
Darren Marble, CEO of Issuance, stated,
“We’re thrilled that Mr. Bishop has invested in Issuance…Mr. Bishop has been a proactive supporter in our mission, and his years of experience in business development and hands-on venture building makes him an invaluable resource as we scale our business.”
Slim Ventures, LLC
Slim Ventures was created with the purpose of providing a unique means of venture capital. Through offering ‘structured financing’ to start-ups, Slim Ventures has completed over $50 million in exits through a variety of industries. For example, these range from commercial and residential real estate, to veterinarian practices.
Issuance was founded in 2018, and is based out of Los Angeles, California. Above all, the main purpose of the company is to act as a bridging platform. For example, working to connect investors with appropriate digital securities issuers.
Make sure to check securities.io again for future news on Issuance, as they have indicated future plans to tokenize themselves.
Issuance has demonstrated a flurry of activity in weeks past. Whether establishing strategic partnerships, or securing timely investments, Issuance has an eye on the future. Here are a few examples of recent developments from Issuance:
Digital Securities and Stablecoins to Benefit from ‘Wave of Innovation’
The Future is…
Fresh off the launch of their first marketing campaign, Cameron and Tyler Winklevoss recently sat down with ‘Balancing the Ledger’. In this interview, the twins discussed cryptocurrencies at large. The overall theme was regulation; what Gemini is doing to support it? and where is it needed?
Two areas in which the twins see much promise are stablecoins, and of course, digital securities. For example, speaking on the promise of tokenized securities, it was stated, “The ICO mania of 2017 – we kind of view that as the pets.com of the securities token world. They were unregistered and it was crazy town for about six months there. I think the next wave will see the real innovation, and the really interesting assets that become tokenized – like real estate, like buildings that are not currently really traded in liquid fashion. So that’s exciting.”
One interesting takeaway from the interview was the twins’ perspective on the relationship between stablecoins and digital securities. They noted that security token issuers could capitalize on the benefits of stablecoins, by using them to issue dividends.
Stablecoins are designed to inherently have less volatility than regular cryptocurrencies. By using them to issue dividends to token holders, issuers would be able to capitalize on the efficiency of a digital currency, while reducing exposure to volatility.
Regulation a good thing
Regulation can be a difficult balancing act between allowing innovation, yet ensuring safe practices. Despite this difficulty, it is still a necessity. Multitudes of investors have lost fortunes on un-regulated ICOs, as made evident throughout the last two years.
It is this very problem that has led to the popularity of the regulated digital security offering. The twins echo this sentiment, as seen in their marketing campaign, pushing for a regulated crypto.
The Gemini headquarters are in New York. The company was founded in 2014, and is a product of cofounders Tyler and Cameron Winklevoss. Above all, Gemini acts as both a custodian and exchange for digital assets. In the time since its inception, Gemini has taken a unique approach to growth, by embracing regulation from day 1.
When asked if Gemini would venture into other sectors, Cameron indicated a desire to expand into digital securities. He stated, “Virtual securities tokens is a real thing – and those sort of backed by real assets, there is a bright future there, and we may move into that.”
It is hard to find someone that hasn’t heard of the Winklevoss twins. They are Olympic Athletes, that have gone on to be wildly successful in the world of finance.
The brothers, Tyler and Cameron, are currently enveloped in advancing the world of blockchain. As they are believed to be one of the largest holders of Bitcoin in the world, this is no wonder. They closed out their interview by jokingly saying that ‘only Satoshi has more’.
To view the interview in its entirety, click HERE.
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- Leonovus pivots from ICO to STO for Galaxa project January 19, 2019
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