Speaking recently on the future of Security Tokens was Brian Armstrong. Hosted by TechCrunch, Disrupt 2018 San Francisco offered a perfect platform for Armstrong to convey his future vision for this new asset class.
During his time on stage, Armstrong touched on various aspects of the industry.
When asked about Bitcoin price actions, Armstrong was quick to convey that he is not concerned with the short term. The market is still emerging and he encourages investors to think long term. Due to the cyclical nature of the market, this current slump will be looked back upon as a minor bump in the road.
Not content with the status quo, Brian Armstrong laid out his vision for the future of Coinbase. Here are a few key takeaways from his time on the mic:
– Armstrong expects most tech start-ups to be tokenized within a few years
– Coinbase wants to play host to securities and is making moves to be licenced to do so
– Hundreds of tokens are expected to be on the platform within a couple of years
These points were made, keeping in mind where the market currently is. Armstrong indicated he believes we are moving from an investment phase in crypto, to a utility phase. A utility phase being a point in time where consumers begin actually using platforms and services for their intended purposed.
He describes the state of the internet as being in its third phase.
Web 1.0 – Publishing Information
Web 2.0 – Interaction / Messaging
Web 3.0 – Value Transfer
With the internet transitioning into this 3.0 era, Armstrong believes that most any charity, start-up, fund, or Dapps will benefit through the issuance of a security token. Coinbase plans to facilitate this progression.
It is no secret that Coinbase will eventually offer security tokens. Beyond simply voicing this decision, the wheels were already set in motion earlier this year. Announced in June, Coinbase acquired securities broker/dealer Keystone Capital.
By acquiring an existing securities dealer, Coinbase immediately inherits a wealth of experience in the sector. This will be crucial in the coming months/years as Coinbase looks to work with the SEC and eventually offer tokenized securities themselves.
Based out of Seattle, Coinbase was founded in 2012. Since inception, they have gone on to become an industry leader. This has been made possible through a constant improvement of their platform, and expansion of services offered. We have seen growth from a simple wallet to a self-described tech company offering index funds, custodial services, and more.
Closing out his time at Disrupt, Armstrong did not rule out a future where Coinbase goes public. He indicated that it would be very ‘on-mission’ if they were to do so via blockchain. Coinbase as a tokenized security – although years away (if ever), is a tantalizing idea.
Smartlands to Tokenise Nottingham Real Estate through STO
After months of platform development, Smartlands is ready to build off of past successes. This young company has just announced the launch of their inaugural security token offering.
Taking place through their Stellar based platform, Smartlands will facilitate the tokenization of shares representing fractionalized ownership of a 124 unit real estate development, purpose built as student housing.
While Smartlands is facilitating this security token offering, the event is a product of Shojin Property Partners – A real estate development and investment firm. Shojin Property Partners completed construction of this complex in 2018, and soon after began filling it with residents.
Now, with the help of Smartlands, Shojin hopes to offer investors a new type of opportunity through the use of security tokens.
Details of the Deal
This deal is providing investors with exposure to revenue, garnered from 32 Russell Street, Nottingham, United Kingdom. With Nottingham playing home to multiple universities, it is expected that these units will be in high demand.
While figures may vary, it is forecasted that investors in this project will receive the following benefits.
– Average dividend yield of approximately 5.74% per annum
– Return of 15.72% per annum including capital growth
For those interested in this opportunity, participation is open to retail investors, with a minimum 500 GBP investment.
In their announcement, Ilya Obraztsov, VP of Technology at Smartlands, took the time to comment. The following is what he had to say.
“At Smartlands we’re rethinking traditional finance models by building a global ecosystem that democratizes access to alternative investments and opens opportunities to higher-yield projects. By connecting blockchain and the real economy, we create new opportunities for retail investors to participate in institutional-grade deals with a much lower buy-in threshold. And we have our first STO to show for our efforts…The student complex in Nottingham is the first tokenized property in the UK, to be followed with new offerings of blockchain-based securities backed by assets in real estate and other markets.”
Smartlands is a U.K company, headquartered in London. The company was launched in 2017, and has since strived to develop solutions geared towards crowdfunding. This has led to the adoption of blockchain technology, and now security tokens.
Company operations are overseen by CEO, Arnoldas Nauseda.
Shojin Property Partners
Shojin Property Partners are a London based company, which was founded in 2009. Above all, they create investment opportunities through the development of various real estate projects, such as the one described here today.
Shojin Property Partners was acquired by Smartlands in early 2019
In Other News
We have detailed Smartlands multiple times over the past few months. Whether discussing acquisitions, or developmental choices, Smartlands has come a long way in this time. The following are a couple of articles discussing these events.
PCF Capital to Host $250 milllion DSO through KoreConX
$250 million DSO
One of the largest digital security offerings, to date, has recently been announced. In an upcoming DSO, Australian based, PCF Capital, will be hosting a whopping $250 milllion event, aimed towards the mining and resource sector.
This DSO will be made possible through the use of KoreConX and their digital securities issuance platform. By choosing to use KoreConX, PCF Capital will be gaining access to the KorePartners. This is a network of strategic partnerships which KoreConX has been developing for some time.
This offering will be open to accredited investors in select countires, including the United States, Canada, Australia, and more.
In making their announcement, representatives from each, PCF Capital and KoreConX, took the time to comment on the development discussed here today. The following is what each had to say on the matter.
Liam Twigger, Managing Director at PCF Capital, stated,
“We are a global company that requires a global solution. We selected KoreConX because it will allow us to remain compliant with regulations not only in the USA and Australia but in multiple other jurisdictions around the world…This is a very important step in the history of PCF and we want to make sure our investors are protected and have a platform to be able to manage the entire lifecycle of the digital securities. That’s why we are using the best possible tools for the job.”
Oscar Jofre, CEO at KoreConX, stated,
“We are disruptors and what better way to do that than work with one of the world’s oldest sectors adopting Digital Securities for their offering. PCF Capital’s global reputation in the mining sector made the decision easy for us to bring them on as clients to our platform…Now is the time for the traditional investor to understand the value and trust of digital securities. Having a global offering of this magnitude heavily investing in a Digital Securities Offering is great for the industry as a whole. Many more will follow once the infrastructure is in place for it, and this is what we are doing with the KoreProtocol.”
PCF Capital is an investment banking group, which is headquartered in Australia. Since being founded in 1999, PCF Capital has gone on to manage over $3.5 billion in deals.
Operations are overseen by Managing Director, Liam Twigger.
KoreConX was founded in 2016, and is headquartered out of New York. Above all, KoreConX has been striving to become the most comprehensive platform for private capital markets. This means developing in-house solutions, and partnerships which facilitate needs within the digital securities sector. To date, KoreConX has begun seeing adoption of their platform, as multiple DSOs are scheduled.
Company operations are overseen by CEO, Oscar Jofre.
In Other News
I recent months, KoreConX has found themselves in our headlines on various occasions. Check out the following articles to learn a bit more about what this promising company has been up to.
Blockport STO Fails to Gain Traction – Platform to Shutdown
Failure to Launch
On a disappointing note, Blockport has announced the cancellation of their ongoing security token offering. After launching the event, roughly 1 month ago, the team has indicated that they have failed to attract their minimum threshold of investments.
This comes as a letdown to the industry, as Blockport represented one of the first security token offerings to be offered through the Tokeny platform. To date, only a handful of STOs have taken place through ANY issuance platform.
While Blockport will be returning investments to the few participants in their STO, they have indicated that this is not the end for them. Their intent is to scale back operations in the short term, reflect, and establish a path for future growth.
This means that the platform will be shutting down in the coming weeks, revering to a ‘development mode’.
Blockport CEO, Sebastiaan Lichter, elaborated on the cancellation in a statement to the public. The following is what he had to say on the matter.
“In the past few months our team has worked extremely hard to launch the first round of our STO, and yesterday this ended after being open for almost one month…In short, the results of the fundraise are not sufficient to proceed with the issuance of BPS tokens.”
Despite this, Sebastiaan Lichter remained confident in the future of blockchain. He continued,
“We still see a lot of opportunities in this industry and have built a top performing trading platform that many people love to use and which has had almost zero downtime or issues since we launched it in the summer of 2018…Whilst developing our platform, our goal is to explore opportunities that support a restart of the Blockport platform in the future.”
Operating out of Amsterdam, Blockport is a Dutch company, which was launched in 2017. Under the watch of CEO, Sebastiaan Lichter, Blockport has developed and launched a trading platform, tailored toward, both, utility and security tokens.
The security token offering, discussed here today, was launched through the Tokeny issuance platform, on March 31st, 2019.
Tokeny is a Luxembourg based company, which was launched in 2017. Above all, Tokeny acts as an issuance platform, providing companies with solutions for the tokenization of assets. Tokeny was responsible for facilitating the Blockport STO – For their part, the event went off without a hitch.
In Other News
While the failed STO is an unfortunate situation, BlockPort is by no means alone. For a variety of reasons, there have been various deals to have fallen through in the past few months. The following articles detail a couple of these situations.
- Smartlands to Tokenise Nottingham Real Estate through STO May 20, 2019
- PCF Capital to Host $250 milllion DSO through KoreConX May 19, 2019
- Blockport STO Fails to Gain Traction – Platform to Shutdown May 18, 2019
- BitBond Opens Bounty Program for Live Security Token Offering May 18, 2019
- Poloniex Cleans House as Tokens Delisted for Fear of Being Called Securities May 18, 2019