Security Tokens: What, How & Why You Would Bother
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The document discusses security tokens and their significance in the blockchain landscape, emphasizing the challenges of issuing them due to regulatory and logistical issues. It highlights the differences between utility tokens and security tokens while presenting data on various ICOs and their market performance. Additionally, it underlines the potential advantages of tokenizing securities, despite the complexities involved in asset tokenization.
Security Tokens: What, How & Why You Would Bother
- 1. Security Tokens What is a security token, why it matters, and why it’s not easy to issue one New Alchemy Market Research | Presented at Blockchain Expo London, April 2018
- 2. A utility token provides access to a network of value.
- 3. Who we are Experts in blockchain technology, ICO advisory, and capital solutions for the tokenized future. ...and we're just getting started. Proudly based in Seattle, WA 3Continents Across 70+Team Members 25Active ICO Clients $2.7BOf Tokenizations Involved in Of Blockchain Innovation Years5+
- 4. Name Ticker ICO Raise Indahash IDH $42.7M BankEx BKX $67.1M Zeepin ZPT $62.6M Leadcoin LDC $50M Utility Tokens
- 5. Name Ticker ICO Raise Market Cap Today* Indahash IDH $42.7M $19.1M BankEx BKX $67.1M $23.2M Zeepin ZPT $62.6M $23.1M Leadcoin LDC $50M $8.8M *coinmarketcap.com Utility Tokens That Have Fallen Beneath Their ICO Fundraise Amounts
- 6. The Global ICO Market Hasn’t Exactly Cooled $4.19B $1.98B $0.95B $3.3B $0.14B
- 7. Why Does This Crypto Asset Exist? Currencies A form of money Utilities A license for network access Securities An instrument of ownership “Smart Contracts” A platform for building DApps We put crypto assets in 4 buckets
- 9. Private Fundraises Play a Larger Role Q4 2017 Top ICOs Q1 2018 Top ICOs* *As of March 15
- 10. Q4 2017 More of the Largest ICOs Exclude U.S. Investors Q1 2018
- 11. More U.S. Market ICOs Classify Their Sales as Securities
- 14. Sometimes the Lines Get a Little Blurry
- 15. Sometimes the “Utility” Is Questionable
- 17. Smart Contract Platforms + Utility Tokens Are Worth More Than $113B in the Market Today Source: Coinmarketcap.com, April 15
- 18. Everything is a security. REIT s Treasury BondsStocks CDOs
- 19. • Regulatory Escape • Reduce Counterparty Risk • Fractional Ownership • Anonymous Ownership • Reduce Reporting & Issuance Costs • Product-Level Securities All these things can be done with traditional securities, but may be cheaper and more accessible in a token. Why Would You Bother to Tokenize a Security?
- 21. “Tokenizing” an Asset Is Difficult Gold is heavy, artworks are expensive to store, and real estate ownership is dictated, and taxed, by governments.
- 22. “Ultimately, however, Propy’s vision is that jurisdictions will adopt the Propy Registry as their official ledger of record such that the transfer of a property on the Propy Registry constitutes the legal transfer of the property and the legal registration of that transfer.”
- 23. Here is a snapshot of the keepers of the “official ledger of record” for real estate in 2017.
- 24. Even tying a crypto asset to the dollar can be difficult, let alone real estate.
- 25. Questions? Galen Moore Director of Market Research galen@newalchemy.io NewAlchemy.io | hello@newalchemy.io