Here’s a very interesting article about this new wave of Security Token Offerings. https://itsblockchain.com/security-token-offerings-stos/

And a pretty relevant discussion with Raoul Paul and some finance guys trying to make sense of the crypto space:

Note: This is not financial advice. You should consult your accountant or your financial advisor for any decisions you make.

My Thoughts:

Will this be the new ICO craze? In a way, yes. As with everything, there will be a lot of fuss about many things, a lot of scammers, a lot of flops, and money will change hands. In the end the dust will settle with some clear winners that have actual market share, a token that has real value and a network effect built on trust.

Ledger - Crypto Beginners Pack

On the podcast the finance guy, I can’t remember which of the three men it is, talks about tokenization of everything. His clear example is Amazon stock and Amazon Prime. If you like Amazon, you get Amazon Prime, which includes everything, video, free shipping, Kindle Unlimited, also Audible, I think, pretty much everything in the Amazon ecosystem. If you like Amazon, you get Prime. Simple as that. But you can also get Amazon stock. The difference is that there’s no monetary gain from having Amazon Prime, and there are no consumer benefits to owning Amazon stock.

Tokenization of securities will allow companies to offer stuff wrapped up in a single token, or share, if you wanna call it like that. The customer is the shareholder, he’s the evangelist, the user, the influencer, the word of mouth marketeer.

This is the reason I like BNB and Binance. I didn’t have the financial background to put my finger on it, but it was explained in the podcast. BNB is VIP club, I like Binance, I use it, having a position in BNB gives me certain benefits inside the platform such as lower fees and increased cashback when I use the debit card, and the company rewards me as a shareholder for owning that token by burning BNB and increasing their value.

I also liked the example of the sports teams. I’m not a sports fan whatsoever but I’m not dumb, I can see the potential in having your biggest fans also have VIP passes, owning stock in the sports team’s company, have certain voting rights etc. One of our Greek teams, AEK, was famously saved from bankruptcy a few years ago when they asked the fans to buy long-term season tickets. The fans flocked in, bought the tickets which were quite expensive, and the team was saved. If this were to happen today, the season ticket could also include a token NFT with all the possibilities discussed above. This would increase their loyalty, it would be resalable at possibly a higher price, fans would be rewarded with VIP access, exclusive material and actual monetary value, and it simply blends the fan and the stockholder into one in a way that totally makes sense.

I’m all for owning stock into the companies that I like. I actually do that. I love and own NVIDIA, Amazon, and now BNB. I don’t own Apple, never will and I would never invest in their stock. This tokenization of stocks, or the fancy term of crypto-backed securities or whatever, simply makes sense.

And even for Bitcoin maximalists, this is a thing to look out for. It has nothing to do with bitcoin, you can still own it, HODL it, it’s not ruining your party. This is a whole different thing, working in parallel.

BullionVault

0 Comments

Leave a Reply