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Elio Motors – Alter the Course

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Who is Elio Motors?

Elio Motors is a vehicle manufacturer based out of the United States.  They are a company that is looking to reinfuse the North American auto industry with levels of ingenuity not seen in ages.

The company has garnered the attention of auto enthusiasts over the past few years by teasing their long anticipate flagship product.  With company successes resulting in Elio Motors raising significant funding to date, the company is now looking to host an STO, and raise the last needed funds to push their product into production.

What is the problem?

The average worker in North America lives a hectic lifestyle.  This means working long hours, and unfortunately, extended periods of time in vehicles going to and from work.  In the past decade, commuter travel times have risen to historically long durations.  These long commutes lead to significant amounts of extra fuel being spent by each commuter.

These long commuter times are awful not only for those individuals forced to endure them, but for the environment as well.  We have seen governments enact things like HOV (High Occupancy Vehicle) lanes in an attempt at reducing traffic congestion, and pollution.  These however are not enough to mitigate the issues at hand.

A large source of the problem is the types of vehicle that manufacturers currently offer.  There is a complete lack of affordable products aimed towards the average commuter.  Whether a commuter chooses to use a small car, motorcycle, etc., they are continually forced to make sacrifices.  These sacrifices come in the form of safety, purchase price, fuel efficiency, and more.  The people of North America need a vehicle that is safe, affordable, efficient, and adaptable, all at the same time.

How will they solve it?

Elio Motors has recognized these problems noted, and in 2012 they set out to remedy the problem.  Since that time, the company has produced a polished prototype vehicle that is ready for production.  Dubbed as ‘The Ultimate Commuter Vehicle’, Elio motors has titled this flagship product the ‘E1C’.

Elio Motors embraces what it feels is missing in today’s commuter cars, and hits the mark for each with their offering.

  • Fuel Efficiency
    • E1C will have 49mpg City / 84mpg Hwy
  • Safety
    • Fully equipped with today’s standard equipment such as airbags, ABS, crush-zones, etc.
  • Made in the United States
    • As this is a vehicle targeted towards a U.S market, the company has ensure 90% of the vehicle is sourced from the U.S. The production of this vehicle is expected to result in over 1500 U.S jobs.
  • Affordability
    • The average consumer cannot afford to purchase an expensive vehicle just for commuting. This is why the E1C comes in at a mere $7,450, making it accessible to a broad market.

While the company has raised money in the past, they are looking to do so once again.  This time Elio Motors will be hosting an upcoming STO.  The sale will be overseen by JonesTrading.  After a mandatory lock-up period, the company has stated that trading on secondary markets will be available on the tZero platform.  This isn’t surprising as the company has received investments and the full endorsement of tZero founder, Patrick Byrne.

During this sale, accredited investors located within the United States will be able to purchase security tokens known as the ElioCoin.  These tokens represented a direct share within the company itself.  Full details on the inner workings of the tokens has not yet been released.  This information will be made available to those interested upon closing of their current private-sale.

Team?

Below are a few of those in charge at Elio Motors.  These individuals are hoping see the E1C leave the production line by 2019.

Paul Elio – CEO

Tim Andrews – VP of Marketing

Michael Bolas – Director of Engineering

Spencer Lott – Corporate Controller

Whats next?

With interest and need at an all-time high for a product such as the E1C, the next crucial step for the company is the final execution.  Elio Motors has had multiple rounds of funding completed in the past, getting them to the point that they are today.  Upon completion of their upcoming STO, the company should be in the position to allow them to finally fulfill their more than 65,000 pre-orders for product.

As with any security token, the ElioCoin stands to benefit from the perks of blockchain.  This means that potential investors will gain unprecedented liquidity and transparency of their holdings.  With these benefits, the company should be able to meet their goal of raising $25,000,000 via an STO with relative ease.

To learn details about the project, please view our Elio Motors Token Listing page.

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Security Tokens

Copper to Securitize Custom Indices with ‘Catalyst’

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catalyst

Copper Catalyst

Over the past few years, one thing has been made clear within digital securities.  This would be a need to develop services which ‘bridge the gap’ between tradition markets, and those of the future.  Simply creating new services and offerings will not, necessarily, spur adoption.  Rather, by providing an easy transition for those already enveloped in financial markets, seems to be a more prudent path to follow.

With this in mind, Copper has announced the creation, and launch, of a new service, dubbed ‘Copper Catalyst’.

Simply put, Copper describes Catalyst as providing the ability to ‘enable crypto funds to create and issue securities on digital assets rapidly, and cost-effectively’.

What does it do? And How?

Catalyst allows for institutional investors to gain access/exposure to cryptocurrencies – all while removing the need for self-storage.  This is done through the use of actively-managed certificates (AMCs).  As a result, by using AMCs, Copper is enabling cryptocurrency indices to be treated as clearable securities.

Bringing even greater appeal to Catalyst, is the use of Swiss ISINs – meaning the securities will be fully bankable (easily converted to cash).  As a result, access will be provided through various regulated European exchanges.

To date, Catalyst is the only service of its kind.  Depending on its success, there will surely be competitors that arise in the future.

ISIN

ISIN is short for ‘International Securities Identification Number’.  These numbers are attached to specific issuances of stock, and provide information on the underlying product.

Think of an ISIN as being similar to a VIN (Vehicle Identification Number) on your automobile.  When decoded, a VIN will provide information, such as date of manufacturing, options, and etcetera.  Similarly, when decoded, an ISIN will provide information, such as a stock identifier, issuance country, etc.

An ISIN is used primarily to identify the underlying product, reducing the risk of various forms of fraud.

Cost Savings

Beyond offering the various capabilities discussed above, Copper notes another major draw towards Catalyst – cost savings.

They attribute this cost savings, primarily, to the ‘initial and on-going regulatory compliance’.  By offering various services, surrounding KYC/AML, trade management, and more, Copper surmises that clients will save, both, time and money.  For example, they provide the following comparisons between utilizing the Catalyst suite vs. independent sourcing of services.

Catalyst

  • £25K
  • Completion in days

Independent

  • £100K+
  • Completion in months

Commentary

Upon announcing the launch of Catalyst, Copper CEO, Dmitry Tokarev, took the time to comment.  He states,

“The crypto fund industry has shown enormously promising growth over the last decade, with impressive strategies and excellent return for investors. But it is no secret that there has been a clear barrier to their graduation into the investment mainstream: the lack of feasible securitisation options. With sky-high costs and extensive compliance issues associated with most available structures, there is a gulf between traditional financial markets and this next generation of funds: a gulf that Copper Catalyst will bridge.”

Growing Suite

With the launch of Catalyst, Copper now has a well-rounded suite of services.  The following are just a few examples.

As this product suite rounds in to form, Copper has the potential to become a leader in a sector rife with potential.

Series A

The development, and launch, of Catalyst is a promising sign.  It shows that Copper is not squandering their recently completed Series A.

We recently covered the success of this funding round, as Copper was able to generate $8M in investments through a variety of companies.  To learn more about this round, and those that participated, make sure to peruse the following article.

Custodial Specialists ‘Copper’ Draws $8M in Investments through Series A

Copper

Founded in 2018, Copper maintains headquarters in London, UK.  Above all, the team at Copper is working to develop a comprehensive suite of services, tailored towards digital assets.

CEO, Dmitry Tokarev, currently oversees company operations.

Past Looks

While their services have expanded well beyond simply that of custody, this is certainly an area of speciality for the company.  Over the past year, we have touched on various instances of adoption, including that of SWARM, as they turned to Copper to custody security tokens.

Copper to Provide Security Token Custodial Services to SWARM

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Blockchain Capital’s BCAP Token Outperforms Market in Q2, 2020

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Blockchain Capital's BCAP Token Outperforms Market in Q2, 2020

Blockchain Capital launched the first security token back in April 2017, this was to be the first tokenized venture fund. This STO event raised $10M USD.

Today they announced that the net asset value (“NAV”) of each BCAP token as of June 30th, 2020, is $4.47, based on the NAV of the underlying venture capital fund, Blockchain Capital III Digital Liquid Venture Fund, LP. Weekly NAV updates can be found at: http://www.loop.blockchain.capital/

The BCAP NAV finished up 25.6% for the second quarter of 2020. The Q2 increase was driven by the liquid/token portion of the fund’s portfolio. The NAV is up 22.8% year-to-date.

The BCAP portfolio is up 347.0% since inception, post-STO from April 2017, and has a Net IRR of 59.0%. Performance figures are net of all fees and estimated carry.

The composition of the portfolio as of June 30th, 2020 is as follows:

Blockchain Capital's BCAP Token Outperforms Market in Q2, 2020

While there are plenty of traditional cryptocurrencies in the portfolio, some special companies to note are Securitize and Harbor which are heavily involved in the digital securities and security tokens space.

Blockchain Capital's BCAP Token Outperforms Market in Q2, 2020

About Blockchain Capital

Blockchain Capital was founded in 2013 with the mission of helping entrepreneurs build world-class companies and projects based on blockchain technology – providing founders with the tools they need to succeed: capital, domain expertise, partnerships, recruiting and strategy.

Blockchain Capital is one of the earliest and most active venture investors in the blockchain industry and has financed 90+ companies and projects since its inception.  The company invests in both equity and tokens and is a multi-stage investor.  Blockchain Capital also pioneered the world’s first ever tokenized investment fund and by extension the blockchain industry’s very first security token, the BCAP, which the company sold through a security token offering in April of 2017.

The company’s view is that blockchain technology holds the promise to disrupt legacy businesses and create whole new markets and business models. Blockchain Capital believes its network of entrepreneurs, investors and advisors brings unrivaled resources to founders who want to leverage blockchain technology to change the world in profound ways.

 

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Real-World Assets as Collateral for DeFi, Made Possible with MakerDAO

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Real-World Assets as Collateral for DeFi, Made Possible with MakerDAO

The cryptocurrency space was borne out of a desire to bring about a better financial system and infrastructure that is inclusive for anyone, anywhere.

The crypto industry has matured significantly since 2010 when Bitcoin kicked off a new wave that today spawned a whole new industry. The crypto community continually progressed with new tools and capabilities being gradually built up.

Nonetheless these capabilities that promise quicker settlement times, trustless global accessibility and granular asset control have mostly remained gated within the crypto realm.

Bringing Together Real-World and Crypto Assets

Now, the ambition is to bridge the gap between real-world assets and cryptocurrencies. Specifically in the DeFi space, that aims to provide a borderless financing infrastructure, the first steps are being made to bring real-world assets as collateral for loan issuance.

The community of MakerDAO, that is behind the DAI stablecoin, arguably one of the most popular DeFi projects, has confirmed the vote on whether to allow real-world assets to be included as collateral options.

This comes following the effort led by the startup Centrifuge, that developed a protocol that lets users turn real assets into securities against which ERC20 tokens can be issued. This enables real world asset securitization as these tokens are interest-bearing and will be issued as NFTs (Non-Fungible Tokens).

DeFi applications built mostly on top of the Ethereum blockchain promise to give more people access to borrowing, lending, and other services because they eliminate the need to go and transact through a financial institution. 

In the case of MakerDAO, the system built with Maker (MKR) and DAI lets users deposit cryptocurrency-denominated collateral to take out loans denominated in the U.S. dollar-pegged stablecoin DAI. 

While recently the DeFi space celebrated a huge milestone with $1 billion locked in various applications across the board, participation in DeFi today is limited because it requires that users have purely crypto-native assets.

Getting real-world assets involved in the DeFi industry is what Centrifuge is pursuing with its Ethereum Dapp called Tinlake. The app allows for the securitization of real-world assets and have these represented on the blockchain as tokens, which can in turn be used to gain access to DeFi services.

What is Asset Tokentization?

Asset tokenization refers to the act of turning the ownership of a real-world asset into a digital token. This can be done in various ways, but all result in the legally-upheld bridge between the physical asset and its representative token.

Deeds, titles, and certificates are all traditional versions of a token. A deed to a house represents ownership of that house. The token refers to the digitally native asset which represents the real-world asset itself.

 The first two types of assets that are available for tokenization are music streaming royalties enabled by PaperChain and ConsolFreight’s freight shipping invoices.

With the positive vote from the MakerDAO community, now anyone – be it individuals or companies – is able to utilize future cash flows from music streaming royalties or shipping invoices as collateral to take out loans for example.

Centrifuge’s Lucas Vogelsang notes the partnership could be the world’s first application of DeFi to a real-world business issue. Particularly, the solution helps ensure quick liquidity for artists and supply chain firms, without the hassles of going through traditional ways of financing. 

MakerDAO’s Rune Christensen has also shared a highly optimistic vision as the two proposals represent the first step towards the expansion of DeFi’s field of application:

“These should be seen as the first two [RWAs] in the greatest portfolio of assets that’s ever been built. It’s just the first step. Thousands and thousands of assets will exist alongside them.”

There are still issues and restrictions when it comes to securitization of real-world assets and introduces new risks to the DeFi space.

For instance, Centrifuge’s tokenization process through its app still falls under the securities law. Since both Paperchain and ConsolFreight are based in the U.S. only accredited investors will have access to these assets.

Another compromise that was made in order to bring real-world assets to DeFi is Centrifuge setting up a special purpose vehicle (SPV) that will have the assets associated with, from a legal touchpoint. Lenders, in the event of default, would have to rely on the legal system to enforce their rights to the collateral, rather than an automated smart contract that can do so with on-chain assets.

While this is necessary to have a claim for the tokenized real-world assets, it represents a single-point of failure. But this is a trade-off that Centrifuge’s Lucas Vogelsang says is necessary in order to bring real world assets on-chain.

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