Connect with us

Security Token News

Fintelum Laying Groundwork for STO Implementation

mm

Published

 on

Fintelum #TokeniseYourAssets

Fintelum STO Implementation Whitepaper

Fintelum has recently made their STO Implementation Whitepaper public. This detailed document pours over the need for, and capabilities of, their Ethereum based issuance platform.

Beyond discussing the intricacies of what makes an asset a security token, and how the digital securities sector came to be, this updated whitepaper delves into what Fintelum has to offer.

The platform functions as a modular codebase, allowing for customizable offerings to be hosted, while retaining the flexibility to ensure regulatory compliance.

*It should be noted that while Ethereum was chosen as the blockchain upon which this platform was built, transition to another is easily possible.*

Features and Compatibility

In addition to outlining a step-by-step of a hypothetical issuance processes, Fintelum has broken down the features and compatibility standards of their platform for interested parties.

The following features are only a few of those incorporated into the platform, which have been designated a requirement under European Union laws.

  • Verification
  • Transferability
  • Categorisation
  • Splitting
  • Whitelisting

Fintelum concludes this document on an optimistic note regarding the work they have completed.

“With this paper, we at Fintelum hope to have achieved our contribution to the overall tokenisation industry advancement. We are conscious that our proposed implementation is one of several possible. And we anticipate there will be others.

It is, however, most notable to demonstrate our understanding of the business and legal requirements to justify the security token implementation.

If our presumptions are correct, this standard implementation can serve as a benchmark for the industry at large”

For full details on what these features entail, make sure to read the whitepaper HERE.

Commentary

We reached out to CEO, Liza Aizupiete for comment on the release discussed here today.

Q: Can you briefly speak on the importance of this whitepaper release?

A: “With this whitepaper, Fintelum releases a set of formalised business and legal requirements necessary for a compliant blockchain-based transferable security instrument. If our assumptions are correct, the Fintelum STO implementation could serve as a benchmark for the capital markets industry at large. Although there are differences in securities laws across boarders. The Fintelum STO implementation follows regulatory requirements based on the EU law.”

Q: Where does this leave Fintelum moving forward now that the public has been afforded transparency into your STO operations?

A: “The importance of transparency cannot be underestimated, especially when it comes to public fundraising. For Fintelum, it is crucial to showcase our business and legal concepts, for which we also have full infrastructure built around. Investors that choose to invest in assets tokenised with Fintelum STO implementation will benefit from being compliant with the prevailing securities laws and thus protected.

Fintelum

Based in Estonia, Fintelum was first launched in 2018. Above all, the team behind Fintelum has set out to develop a suite of services tailored towards the digital securities sector.

Managing Director, Liza Aizupiete, currently oversees company operations. We were fortunate to have recently interviewed her, gaining insight on, both, Fintelum and the industry at large. Check out the following article to learn more about what they are doing to help the growth of the sector.

Interview Series – Liza Aizupiete, Managing Director of Fintelum

In Other News

The digital securities industry is still a nascent one, with many hurdles yet to be cleared. Fintelum’s very own Liza Aizupiete recently penned a series of articles discussing these challenges, and what is needed to overcome them.

When any Asset Becomes a Digital & Immutable Proof of Ownership

Evolution in Capital Markets

STOs vs. Crowdfunding, ICOs & IEOs

Security Tokens of STO –What are your Alternatives?

Next step in Evolution of Capital Markets

Spread the love

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 Token News

VeVue Signs Partnerswith CBX for Token Launch

mm

Published

on

VeVue Partners with CBX Exchange for STO

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.

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.

VeVue via Homepage

VeVue via Homepage

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.

VUE STO

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.

Spread the love
Continue Reading

Security Token News

CFTC Labels Ether a Commodity

mm

Published

on

Ether is a Commodity

The crypto community got some exciting news this week after the Commodity Futures Trading Commission (CFTC) Chairman stated that Ether (ETH) is a commodity. The news follows similarly worded statements from SEC officials in the past.

The news came via an Oct 10 statement from acting CFTC Chairman Heath Tarbert. In the post, the Chairman announced that he believes Ether is not a security at this time. The news comes at a critical point in Ethereum’s development.

The news is a huge win for the Ethereum community. Currently, Ethereum is the second-largest cryptocurrency in the world by market cap ($20 billion). The ruling is important because it means Ether falls under CFTC regulations and not SEC securities regulations. Consequently, the decision allows financial institutions to offer a wide array of new products and open up entirely new markets moving forward.

Ether Futures and Derivatives

In the past analysts pointed out that the Ether derivatives market suffered due to the lack of transparency. Tarbert now says that you can expect to see both Ether futures and derivatives markets in the very near future. Surprisingly, he stated that these financial tools would hit the market in less than a year.

Ether Creator Vitalik Buterin via Medium

Ether Creator Vitalik Buterin via Medium

Transformative Token

According to the Chairman, Ether is a case of a transformative token. Basically, the token started as a security during the ICO event. At that time the enterprise was playing a controlling role over the digital asset. As time progressed, the Ethereum enterprise faded to the background as the cryptocurrency decentralized. Now the token serves as a utility.

Reverse Securities

Additionally, Tarbert described the reverse scenario in which a utility token slowly develops into a security. In this situation, you start off with a fully decentralized organization. Over time, the enterprise steps back in to take more control. Consequently, this creates a scenario where investors seek profits from the efforts of others. Now the token is a security.

Notably, SEC officials stated that they do not consider Ether a security in its current state. However, both the SEC and CFTC did point out that during the company’s ICO, Ether acted as a security. Luckily the SEC declined to fine the Ethereum development team for its ICO.

Bitcoin is a Commodity

Falling along this line of thought, Tarbert explained that Bitcoin is also a commodity. This statement coincides with the SEC’s decision to decline to label Bitcoin as a security. Analysts consider these actions as a precursor to this week’s news.

PoW to PoS

Also, Ethereum developers announced a shift from the Proof-of-Work (PoW) consensus algorithm to a more energy-efficient alternative, a Proof-of-Stake (PoS) consensus mechanism. PoS systems don’t require your PC to do heavy computations. Instead, users earn rewards for “staking” tokens in their wallets. In this manner, PoS tokens use far fewer resources.

Ether Moving Forward

The Ethereum community has much to celebrate moving forward. The cryptocurrency continues to see development across the entire sector. You can expect to see the Ethereum community expand as more ETH-based products enter the market in the coming months.

Spread the love
Continue Reading

Security Token News

SEC Seeks Input on ‘Boston Securities Token Exchange (BSTX)’ Proposal

mm

Published

on

SEC Seeks Input on 'Boston Securities Token Exchange (BSTX)' Proposal

Launching Markets – BSTX

The Boston Securities and Token Exchange (BSTX) has recently filed a proposal for various rule changes with the SEC. These changes would allow for BSTX to launch what would be the market’s first digital exchange supporting full-fledged digital securities.

Joint Filing

The Boston Securities and Token Exchange is a by-product of a partnership between tZERO and BOX Digital. This pairing of companies launched the joint venture in mid-2018, with the intent to develop the first fully regulated digital exchange in the U.S.

BSTX is expected to utilize blockchain technology provided by tZERO, while BOX representatives work towards establishing regulatory clearance. With each providing different areas of expertise to BSTX, both tZERO and BOX have made it clear that this is a joint venture, with each having a 50% say.

Rule Change

The proposed rule change discussed here dates back to late June, 2019. At the time of the filing, it was viewed as having the potential to create a ‘rulebook’ for the operation of such exchanges in the United States. Only now, months later, is the SEC making the filing available for public commentary.

A few of the noteworthy attributes of their proposed exchange are as follows:

  • Asset ownership recorded using a private blockchain
  • Trading enabled through use of BSTX tokens
  • Whitelisted clients

At the initial time of its filing, we took a brief look at BSTX and their plans, including the use of an in-house token developed by the exchange.

Boston Security Token Exchange (BTSX) Seeks SEC Rule Change

Commentary

In their filing, made public by the SEC, the BSTX begins by outlining their plans and intentions for the proposed exchange.

“BSTX would operate a fully automated, price/time priority execution system for the trading of “security tokens,” which would be equity securities that meet BSTX listing standards and for which ancillary records of ownership would be able to be created and maintained using distributed ledger (or “blockchain”) technology.”

Boston Securities and Token Exchange (BSTX)

Operating within the United States, BSTX is a proposed digital securities exchange, which was founded in 2018. The company looks to become the first exchange of its kind, supporting full-fledged digital securities.

CEO, Lisa Fall, currently oversees company operations.

In Other News

Whether it be through the backing of others, or through their own endeavours, tZERO remains hard at work, establishing the digital securities sector.

We were recently fortunate enough to have interviewed tZERO CEO, Saum Noursaheli. In this exclusive interview we discuss past and future events pertaining to the company. Make sure to check out the following interview to learn more!

Interview Series – Saum Noursaheli, CEO of tZERO

Spread the love
Continue Reading