StartEngine was founded in 2011, and is headquartered in Los Angeles, California. They are a company with lofty goals. StartEngine has indicated that their mission is to ‘empower 5000 companies to raise capital and create 1 million jobs in the next 5 years’.
Tokenizing Assets Everywhere
Wealth can be found everywhere in the world. Nearly anything can have a monetary value associated with it, whether this be a piece of art, a vehicle, company assets, real estate etc. Unfortunately, much of this wealth is completely illiquid. This means that despite someone being wealthy, per say, they may not have the ability to access their own worth.
Through the use of blockchain technology, much of this wealth can be tapped, accessed, and put to use. By digitally issuing securities, in the form of tokens, we are now able to attain fractionalized ownership of companies and assets, which would not be accessible before.
This is where StartEngine comes in. To achieve this process of tapping into wealth, we need trusted platforms that will facilitate the process of issuing digital securities, as well as provide the foundation on which these assets will be secured and traded.
This protocol was developed with a specific purpose in mind by StartEngine – facilitate digital securities in addition to the regulations associated with them. Based off of the popular ERC-20 protocol, this token standard is both open and easy to adapt. Through its use, issuers of digital securities are able to ensure adherence to regulations enforced upon the industry.
Simply put, this protocol allows for smart-contracts to be deployed, while providing users the benefits of the security offered through regulations, as well as those from a decentralized environment.
Not only is has SmartEngine utilized this new standard for the issuance of their own security tokens to shareholders, but intend for it to be used by all issuers that make use of their platform.
Security through Record Keeping
Issuers and token holders alike will benefit from increased security due to services offered by StartEngine. One of the main sources for this increased security is through the use of a registered transfer agent.
A registered transfer agent is a book-keeper that connects token issuers to holders. They facilitate the distribution process, while maintaining a record of token ownership. Through the use of a transfer agent, tokens cannot be stolen or lost. As the tokens cannot be sold or traded without going through them, any individual not documented as the official token owner cannot do anything with these tokens. If victim to a hack, the official owner simply needs to inform the transfer agent. The tokens in question will then be nullified, with new replacement tokens reissued to the true owner.
This is simply one example of the benefit of using a transfer agent for platform services. The number of benefits are, however, many.
Behind the Scenes
StartEngine is the brainchild of both Howard Marks, and Ron Miller. Under their watch, StartEngine looks like a strong bet to disrupt traditional finance.
StartEngine has already hosted one STO, and is now looking to host another. In this round of fundraising, the company will be looking to raise $10 million @ $7.50/share. This round of fundraising is limited to accredited investors only, with full details being available on their website HERE.
REMCO Software to see Security Tokens Listed on LATOKEN
REMCO Software is in the midst of completing a ‘security token offering’. As you may know, this refers to a crowdfunding campaign tailored towards accredited investors. During the offering, investors are able to purchase digital securities in the form of a token, typically representative of equity shares within the issuing company – an efficient merger of traditional and future finance.
Recently, REMCO announced good news, as they have secured an agreement that, once issued, will see their tokens listed for trading on the LATOKEN platform. By providing a flexible listing platform, LATOKEN will enable investors to easily trade between REMCO tokens and FIAT currencies. The ability to do so is expected to result in new-found levels of liquidity, not normally witness when dealing with such assets.
In their press release, representatives from both REMCO and LATOKEN spoke on the agreement, and what it means for the industry.
“We are especially pleased to welcome REMCO token in the pool of our future projects. Their business model is both practical and very innovative. It brings a great deal of added value to the industry.”
“LATOKEN’s innovative approach appealed to us…There are many crucial steps to getting this business off the ground, and we appreciate reaching this milestone with LATOKEN.”
REMCO is a young company looking to revolutionize the remittance industry. They intend to do so, by utilizing traits inherent to blockchain technology that will allow for greater transparency and efficiency in finance. They were founded in 2018, and are based out of Laurel, Maryland.
Company operations are currently spearheaded by CEO, Peter Ojo. Under his watch, the company hopes to successfully complete a security token offering, which will facilitate their envisioned future.
LATOKEN refers to ‘Liquid Assets Platform’. Founded in 2017, CEO, Valentin Preobrazhenskiy, has guided the platform into becoming a promising player within the industry. As their name implies, the platform aims to bring liquidity to a variety of assets. Through their FIAT gateways, they have now begun to attract the attention of companies, such as REMCO.
In Other News
While this is the first time that each of these companies have graced our headlines, there is no shortage of news in the industry. Here is a brief look at a few articles detailing recent partnerships, and industry developments.
Magic BlockchainQA to Collaborate with Securitize
It was recently announced by Magic Blockchain QA, that they have established a working relationship with industry leader, Securitize.
The nature of this relationship will see each company refer clients to the other. They are essentially building bridges, which will provide clients with a greater variety of integrates services.
In addition to client referrals, this relationship will see Magic BlockchainQA offer their quality and analysis services for the DS-Protocol. This protocol was custom built by Securitize to fit the needs of the digital securities industry. Through its implementation, clients are able to sell, create, issue, and manage digital securities backed by a variety of assets.
This development is reminiscent of one that occurred just recently. At that time, we reported on a similar relationship between DESICO and Securitize. As stated, these types of relationships are key to ensuring steady growth in the relationship. At this stage in the game, what is good for one player is good for all players.
Anuraj Soni, President of Magic Blockchain QA, took the time to address this development.
“The Securitize platform has gained significant prominence in last few years and this partnership allows Magic to train its consultants on this platform enabling Securitize clients easy access to a pool of Magic consultants who can help with the seamless adoption of this platform.”
Magic BlockchainQA touts themselves as the world’s first quality and analysis services dedicated to blockchain applications. Check out the following video to learn more about why this is an important and needed service.
This young company was founded in 2018, and is based out of New York City. Company operations are overseen by President Anuraj Soni. He boasts years of experience in leadership roles at companies like Bank of America, GENPACT, and other.
To date, Magic BlockchainQA has established partnerships with not only Securitize, but MythX as well.
Since commencing operations in 2017, Securitize has developed a tech-stack that allows for them to offers clients end-to-end tokenization services. These services range from token creation, to issuance, and lifetime management post distribution.
In Other News
To learn more about the companies discussed here today, make sure to check out a few of the articles below. While this is the first time we have detailed Magic Blockchain, Securitize is a regular on our newsfeed.
Blockchain Identity Firm WISeCoin Announces STO
The Swiss-based cybersecurity firm, WISeCoin announced plans to host an STO in Q2 2019. The announcement has captured the attention of analysts and follows the receival of a “no-Action Letter” from the Swiss Financial Supervisory Authority (FINMA). The move marks another step forward for the Swiss security token market.
WISeCoin is a subsidiary of WISeKey. WISeKey created the WISeCoin platform to furhte3r pursue their blockchain identity strategy. Speaking on the decision to host an STO, WISeKey CEO, Carlos Moreira, discussed how his platform utilizes a wide-range of “blockchain enabled microchips” to provide clients with a customizable identification system. He also touched on the importance of increasing your digital identification procedures to adapt to the “evolving device landscape.”
WISeCoin developers seek to revolutionize the world of digital identification via the integration of IoT, blockchain, and AI. The concept is anything but simple. WISeCoin integrates a host of proprietary technology to merge seamlessly merge these sectors. Here’s how the system functions.
Blockchain of Identity
Blockchain identification systems are nothing new to the sector. The ability to verify, authenticate, and securely manage digital identities via the blockchain continues to drive more firms into this business model. What makes WISeCoin different is their approach to the problem.
WISeCoin developers decided to leverage the immutable nature of blockchain technology by pairing it with the Internet of Things (IoT). The IoT is the network of billions of smart devices currently entering the market. These items are able to monitor and communicate with each other.
To put the scope of this network into perspective, there were 15.4 billion smart devices connected in 2015 according to IHS reports. Intel plans to expand that network to 200 billion devices by 2020. Of these smart devices, wearable units are the fastest growing. IDC forecasts predict a 31 percent increase in this sector by 2020.
As you could imagine, leveraging these devices is an extremely powerful way to monitor, verify, and authenticate people, or items. In order to accomplish this monumental task, WISeCoin developers employ “Root of Trust” RoT and PKI protocols. RoT protocols provide secure authentication across both digital and physical environments.
WISeKey International Holding Ltd.
The world of AI, IoT, and blockchain are destined to play important roles in the future. WISeKey combines the best attributes of these advanced sciences. The firm is sure to see continued success in the coming months as their STO approaches.
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- Singapore Halts STO for Regulatory Breach February 13, 2019