#security-

Towards More Programmable and Robust Security Tokens: Five Protocols that Should be Part of…
▻https://hackernoon.com/towards-more-programmable-and-robust-security-tokens-five-protocols-that

https://cdn-images-1.medium.com/max/1024/1*-R7zfU2DLSumtuz6CO3_MQ.png

Towards More Programmable and Robust Security Tokens— Five Protocols that Should be Part of Security Token PlatformsThe market for security token platforms seems to be getting crowder every weeks. In a market with only a handful of actively traded security tokens, we already have over 50 platforms that are promising to be the future of crypto-securities. On paper, most of those platforms look incredibly similar which contributes to the noise in the market. To differentiate signal from noise, security token platforms must evolve their technical capabilities in order to support more sophisticated offerings. And we don’t need to start from scratch; the #ethereum ecosystem offers a rich set of protocols that can easily improve the feature-set of the next generation security token platforms. (...)

#security-token #blockchain #cryptocurrency #invector-labs

Some Thoughts About Security Token Networks: Part I
▻https://hackernoon.com/some-thoughts-about-security-token-networks-part-i-d94518e7f32e?source=r

https://cdn-images-1.medium.com/max/1024/1*edQb5w85Z5FKM8Y7Fb3kbw.jpeg

Recently, I wrote about the emergence of security tokens in permissioned blockchains as a “local maximum” phenomenon or an approach with strong short term perspectives but with questionable viability long term. The last part of that article explores the idea of a security token network that enables public availability with privacy constraints to link together the different participants in the security token ecosystem. Coincidentally, shortly after my article came out, we saw the news of Provenance raising $20 million on a security token offering(STO) to build a very similar model. Today, I would like to explore some ideas about the thesis of security token networks, its value proposition and risks.As a market dynamic, the emergence of security token networks might be influenced by two (...)

#invector-labs #cryptocurrency #ethereum #blockchain #security-token

#switzerland and #liechtenstein improve their crypto friendly regulations to favour STOs
▻https://hackernoon.com/switzerland-and-liechtenstein-improve-their-crypto-friendly-regulations-

https://cdn-images-1.medium.com/max/696/1*ZKcZGqHzRCJR8dk-WZKVVg.jpeg

Nowadays, tokenized securities are the hottest crypto topic. Of all possible tokenizations — debts, real assets or equities — catch the most interest. This despite the fact that it is really debt #tokenization that presents the “low hanging fruit”, because it is fairly straightforward to implement and it has very little regulatory constraints. In fact, the first EU debt tokenization was recently completed in Germany.Instead, the tokenization of equities is much more complex due to the amount of regulatory constraints.The regulatory hurdles to equity tokenizationUnderstandably, the tokenization of equities is highly appealing to VC firms, investment bankers, business angels, and SMEs; all salivating at the opportunities that this may bring.Nonetheless, although increased liquidity, tradability, (...)

#blockchain #security-token

A Local Maximum Paradox: Permissioned Blockchains and Security Tokens
▻https://hackernoon.com/a-local-maximum-paradox-permissioned-blockchains-and-security-tokens-ec4

https://cdn-images-1.medium.com/max/1024/1*eHl2W_qIptwS-TONMO1jZA.jpeg

Security tokens have evolved exclusively as public #blockchain scenarios but that trend seems to be rapidly shifting. In the last few months, I’ve talked to at least a dozen of startups that are embarking on the journey of building crypto-security platforms for permissioned blockchains. These types of solutions seem obviously targeted to enable the infrastructure for banks and institutional investors to leverage security tokens while mitigating the risks of public blockchains. Whereas the value proposition of permissioned blockchains for security tokens might look clear in the short term, there are some very interesting economic and technological arguments that should be considered for the long-term viability of this trend. Today, I would like to present some ideas about (...)

#security-token #invector-labs #cryptocurrency #ethereum

#blockchain Could Make #investing in #commodities Simpler
▻https://hackernoon.com/blockchain-could-make-investing-in-commodities-simpler-cbe1c93f0882?sour

https://cdn-images-1.medium.com/max/995/1*HD_qiUrssvO4pYY19e_jlg.jpeg

Investing in commodities, such as coal, #gold or oil, can be difficult for investors. A major reason for this is that unlike stocks and bonds, commodities are not readily transferable and easily accessible to the average investor. Further, the complex way in which they trade through the futures and options markets can be a hurdle. In other words, an investor can’t just buy a barrel of oil. With the rise of Blockchain technology, tokenizing commodities can be a reality.What Are Commodities?Commodities are in general raw materials or goods that are grown or mined. The commodities market is where they can be bought and sold, such as precious metals, gold, coffee beans, oil, grains, energy, etc. People have been using physical commodities all around the world throughout history as forms of (...)

#security-token

Three months into 2019, what’s the news in #crypto?
▻https://hackernoon.com/three-months-into-2019-whats-the-news-in-crypto-d51962097a89?source=rss-

The prolonged “crypto winter” combined with the numerous #ico exit scams were a significant body blow to the #blockchain-crypto space. But 2019 shows promise, with that let’s look at some of the significant market trends.ICO Landscape: ICOs take a deadly blowOverall the number of ICOs have dropped dramatically the world over, despite the efforts of some countries to create a conducive environment for launching an ICO. During Q1 of 2019, the number of ICOs fell by 61% when compared to Q4 of 2018.Funds raised ($MM) country-wisesourceIn terms of funds raised companies from countries such as the UAE and Cayman Islands have leapfrogged ahead of the usual suspects like UK and Singapore. UAE and Cayman Island companies attracted $142 million and $100 million respectively and accounted for 21% and (...)

#investing #security-token

Programmable Disclosures and Security Tokens
▻https://hackernoon.com/programmable-disclosures-and-security-tokens-656857ad27b4?source=rss----

https://cdn-images-1.medium.com/max/1024/1*aN8ExDBrC56Kkm-9TgeOmA.png

Very often we hear voices in the security token community claim that we need better projects in order to improve the momentum of the crypto-securities markets. I often find that argument a bit shortsighted as I don’t believe the quality of token offerings alone is enough to enable market making and liquidity in the security token ecosystem. In my opinion, security tokens are still missing some fundamental building blocks in order to become a relevant financial mechanism. Among those building blocks, disclosures and information symmetry mechanisms are fundamentally required to achieve any level of fairness in the security token market. I’ve a vocal proponent of disclosures and security tokens in the past. Today, I would like to explore some new ideas about this area that I think might be (...)

#cryptocurrency #invector-labs #security-token #blockchain #ethereum

Some Reflections About Identity and Security Tokens: Part I
▻https://hackernoon.com/some-reflections-about-identity-and-security-tokens-part-i-e9ed2da93a6b?

https://cdn-images-1.medium.com/max/1024/1*-8C0RM1rwgwAUYc4kIjtrg.jpeg

Identity is the key element that differentiate security tokens from other #blockchain protocols. In the current generation of security token platforms, identity is constrained to the use of “white lists” which represent a directory of investors approved to perform specific transactions. While white lists enable identity-based capabilities, they do not represent a form of identity in and out itself. As the security token space evolves, identity should evolve as a standalone protocols that are used across different security token platforms. Achieving this requires a careful balance between securities law, the characteristics of distributed ledger runtimes and decades of research in identity management protocols. In this two part article, I would like to explore some ideas about identity (...)

#invector-labs #cryptocurrency #ethereum #security-token

Security Token Offering — Should You Engage an STO #advisory?
▻https://hackernoon.com/security-token-offering-should-you-engage-an-sto-advisory-25daa1fcda9b?s

https://cdn-images-1.medium.com/max/1024/1*3Pu8MrygPH6mulCPt0NUeQ.jpeg

Security Token Offering — Should You Engage an STO Advisory?Bitcoin seems to be challenging fiat. Blockchain Technology is disrupting decade-old industries. Security Token Offerings (STO) are the new method of fundraising. Originally, ICOs were thought to be killers of the space but due to the number of scams, regulations were quick to address the issue. STO is, simply put, the legalized version of ICOs.Launching an #ico is already a complicated process. Add on the additional legal compliance and the necessity to complete proper ongoing KYC and AML on investors required for an STO, you then have a plethora of things to worry about. Should you then engage an STO Advisory?What are Security Token Offerings (STOs)?But let’s try and understand it with a simple analogy: A factory.Fundraising with (...)

#what-is-an-sto #security-token #consulting

Security Tokens: Another Bubble or the Real Deal?
▻https://hackernoon.com/security-tokens-another-bubble-or-the-real-deal-20c9373607c7?source=rss-

https://cdn-images-1.medium.com/max/1024/0*4mSuijvBRh7-aGzq.jpg

The cryptocurrency market has turned some people into millionaires at the expense of indebting many others.In retrospect, now that the dust from the meteoric collapse of ICOs has settled, the whole idea of decentralizing wealth seems to be a farce. A few lottery-lucky speculators day traded their week’s paycheck into a fortune if they managed to sell their ICO tokens at the January, 2018 highs. The majority are left holding some of the most putrid bags in the history of speculation. The problem with ICOs had been that far too many projects launched a utility token without creating a real economic demand for that token. Meanwhile, people blindly threw in hefty sums of cash in the mere hope of selling their ICO tokens for a profit. When greed combines with whimsical decision-making, (...)

#security-tokens-bubble #blockchain #bitcoin #finance #security-token

Security Token #derivatives
▻https://hackernoon.com/security-token-derivatives-158758c6a301?source=rss----3a8144eabfe3---4

https://cdn-images-1.medium.com/max/1000/1*VZPxjhru55bRMj-Cb5szPQ.jpeg

An Overview of Security Token DerivativesA derivative is a financial contract between two or more parties that derives its value from an underlying asset ie. stocks, commodities or cryptocurrencies. An agreement to buy or sell a particular asset at a predetermined price and a specified time in the future. Derivatives do not have inherent or direct value by themselves. The value of a derivative contract is purely based on the expected future price movements of the underlying asset.Cryptocurrency tokens are special kind of virtual currency tokens that reside on their own blockchains and represent an asset or utility. Tokenizing assets via #blockchain is maturing and we are already seeing great traction in the industry. You can find all the info you need about STOs in these articles:What (...)

#whats-an-sto #security-token-offering #security-token

Should There Be a #blockchain for Security Tokens?
▻https://hackernoon.com/should-there-be-a-blockchain-for-security-tokens-4efc877ce044?source=rss

https://cdn-images-1.medium.com/max/751/1*DQOfeKiKb8kQXm3v8_JmqQ.png

OVERVIEW:A tokenized version of assets should be able to demonstrate three key properties on the blockchain: the underlying asset: the virtual representation of the asset; the ownership of the asset: the identity of the asset owners; and the compliance rules of the asset: the set of regulatory and compliance rules governing the ownership and transaction of the asset.Currently, privacy and compliance seem to be the major challenges in launching STOs. Depending on the jurisdiction, investors have to go through strict Know Your Customer (KYC) and Anti-Money Laundering (AML) processes to be compliant and eligible to invest and trade securities. However, due to the borderless, peer-to-peer, transparent and decentralized natures of cryptocurrency, some frictions exist between tokenized (...)

#tokenization #security-token-offering #digital-asset #security-token

Investing in the Security Token Ecosystem
▻https://hackernoon.com/investing-in-the-security-token-ecosystem-6a75e750beef?source=rss----3a8

I had the pleasure of presenting on the topic of “Investing in the Security Token Ecosystem” in January 2019 at the Security Token Realized conference in London. Below is a summary of some key ideas from the presentation. If you are interested in learning more about our insights and perspectives on investing in the space, check out the full video presentation here.I) Key Benefits of Security Tokens:Transparency & Programmability: Establishing trust between different parties is of vital importance locally, nationally, and globally. #blockchain is the ultimate cap table of “who owns what” and a record of all the previous transactions. Additionally with smart contracts, we can program compliance so that trades can automatically go through if the investors are compliant, else there would be (...)

#tokenization #cryptocurrency #security-token #cryptocurrency-investment

How will Security Tokens fare in 2019?
▻https://hackernoon.com/how-will-security-tokens-fare-in-2019-ef525e5bcb92?source=rss----3a8144e

But first, shoutouts to our investors of the week: Louis Lebbos, Faizan Khan, Antoine Tardif, & Rizwan Virk!As security tokens continue their march towards tokenizing economies, Hackernoon presents to you its top stories on security tokens.Hey, Utsav Jaiswal here, Hacker Noon’s new blockchain editor. Before we dive into these security tokens stories, we’d like to give a huge congratulations to our contributor & investor Riz Virk on the upcoming release of his book: The Simulation Hypothesis: An MIT Computer Scientist Shows Why AI, Quantum Physics and Eastern Mystics All Agree We Are In a Video Game (available March 31). Riz has been a long time Hackernoon contributing writer, and we recommend pre-ordering his book today. You can read more about Riz in this week’s Vice story: How (...)

#hacker-hodl #security-tokenization #security-token #hackernoon-letter #sto

Security Tokens — Three Types You Should Know Of
▻https://hackernoon.com/security-tokens-three-types-you-should-know-of-d8146e648be9?source=rss--

https://cdn-images-1.medium.com/max/1024/1*ldAvsAUoJ_2IEkFxTlewTw.png

Security Tokens — Three Types You Should Know OfSimilar to traditional security, a security token performs the same function except that it confirms ownership through blockchain transactions and also make fractional ownership possible. Federal laws that govern securities also apply to Security tokens with the intention of protecting investors on some levels. Security tokens are programmable. Tokenizing securities, in theory, remove the need of a third party by using smart contracts. For example, a loan “tokenized” on a blockchain could automatically make payments without the use of a traditional middleman like a bank. We discussed deeper on the various regulatory requirements around security tokens previously on Hackernoon.Security Token Offerings (STOs) — What You Need To KnowOriginally, (...)

#whats-an-sto #security-token #sto #ico #security-token-offering

The Fantasy of Self-Service Security Token Issuances and Some Ideas to Fix It: Part II
▻https://hackernoon.com/the-fantasy-of-self-service-security-token-issuances-and-some-ideas-to-f

https://cdn-images-1.medium.com/max/941/1*AlHnldosUy8-ZDizTvAUbQ.jpeg

This is the second and last part of an article that demystifies the idea of self-service security token issuance platform. In the first part, we explored some of the challenges of self-service security token issuances. Today, I would like to discuss a potential solution that balances technical viability without incurring in any of the fundamental limitations of the current set of self-service security token issuance tools.The idea of building tools that simplify the issuance of security tokens seems incredibly compelling particularly considering the complexities of the current issuance models. However, complexities should be expected in early stage technology markets and trying to abstract them too quickly results in the creation of tools that are not correlated with real world (...)

#invector-labs #security-token #ethereum #blockchain #cryptocurrency

The first #sto milestone is German: Bitbond issues the first BaFin approved security token bond
▻https://hackernoon.com/the-first-sto-milestone-is-german-bitbond-issues-the-first-bafin-approve

https://cdn-images-1.medium.com/max/800/1*o33AOewyi_uEh0aVJol1CQ.png

Courtesy of Bitbond GmbHLastly it happened: a German company has won the race to issue a fully regulated security token, at least in Europe. Despite others having claimed to have “tokenized” something in the past, this Bitbond issue is a radical shift in the STO narrative so far.Indeed Bitbond — a Berlin based crowdfunding company — has released a prospectus approved by German regulator BaFin to raise funds by issuing a security token bond on the Stellar #blockchain, without a depositary bank, without certificates or coupons and intermediaries. Differently from what happens with traditional bonds, no commission/premium/agio will be charged to subscribers. Also the size of this STO is considerable, with an ambitious hard-cap of €100M.This is a big step forward, this is finally the game changer (...)

#sto-milestone #cryptocurrency #security-token-bond

Security Token Superpowers — Part 2
▻https://hackernoon.com/security-token-superpowers-part-2-30ffcdd4acac?source=rss----3a8144eabfe

https://cdn-images-1.medium.com/max/1024/1*-n2tI3Ptta6fQD5nb4wElQ.jpeg

Security Token Superpowers — Part 2In this post, we’ll dig deeper into why Security Tokens not only benefit investors, but why they are so important to the stability, economics and growth and stability of the Open Finance Protocols themselves.In Part 1, we explored how individual investors benefit from using Security Tokens in Open Finance Protocols. In this post, we’ll dig deeper into why the Protocols themselves need Security Tokens to grow.SummaryOpen Finance Protocols today currently use and support ICO tokens like #ethereum, ZRX, BAT etc…as well as some stablecoins like DAI.Outside of the major coins like Ethereum and stablecoins like DAI, the assets used by these protocols are of questionable value, regulatory status and are highly volatile.Supporting and using Security Tokens enable Open (...)

#security-token-superpower #makerdao #blockchain #security-token

The Fantasy of Self-Service Security Token Issuances and Some Ideas to Fix It: Part I
▻https://hackernoon.com/the-fantasy-of-self-service-security-token-issuances-and-some-ideas-to-f

https://cdn-images-1.medium.com/max/808/1*RWHRlg-6EyTGrfZGVQzHSQ.jpeg

Issuing security tokens shouldn’t be this hard. That’s a phrase that I constantly hear from one my mentors in the #blockchain space explaining that most security token issuance these days involve writing smart contracts by hand. Almost as an overreaction to the complexity of the security token issuance processes, there have been several attempts to promote self-service issuance tools that promise the creation of security tokens with a few clicks. Today, I would like to explain some of the fundamental flaws with that approach and propose what I consider is a better alternative.The security token space has adopted two extreme positions when comes to crypto-security issuances. On one extreme, every security token requires smart contract developers to write a lot of repetitive code and (...)

#invector-labs #ethereum #security-token #cryptocurrency

Complete Guide on #soc And Its Implementation for Your Business
▻https://hackernoon.com/complete-guide-on-soc-and-its-implementation-for-your-business-37b063cb9

https://cdn-images-1.medium.com/max/1024/1*aotXAavXVOIAm0WbBDtvfA.jpeg

With Big Data, SOC becomes essential in business, but what does this abbreviation mean? Here is the definition of SOC or #security Operation Center.The practice of Big Data and data processing requires a high level of security. In this, a SOC is essential. This Security Operation Center, or oversees information systems within companies to protect against cyber-attacks.SOC definition of the operational security centerThe use of the IT computer (not to be confused with that of the plow and the political company) is carried out by a division of the company which will ensure the computer security in all the installed infrastructures. The area of ​​expertise extends from the network layer to the software on the desktop. It can monitor activities from another SOC: The System on Chip. (On-chip (...)

#security-operation-center #cloudsoc #cybersecurity

Tokenizing Assets for Dummies
▻https://hackernoon.com/tokenizing-assets-for-dummies-20cb7ccccbb?source=rss----3a8144eabfe3---4

How to Tokenize an AssetTokenize an asset and launch a Security Token Offering in a few misleadingly simple steps.The Market Shifts in FocusAs the #blockchain technology and cryptoasset markets mature, the focus has shifted from Initial Coin Offerings and Utility Tokens to Security Token Offerings and Security Tokens. Judging by the speed at which we seem to switch focuses in this industry I imagine we’ll be onto the next big buzz word within the next few weeks (the tokenized asset buzz already seems to be dying down in fact), however, for the time being- let’s look at how tokenizing assets actually works.Tokenizing assets is using digital tokens to prove ownership of real assets provides a number of benefits that expedite the process of buying and selling securities. Tokenizing an asset or (...)

#cryptocurrency #security-token #cryptocurrency-investment #bitcoin

Security Token Offerings — The New Kid On The Block
▻https://hackernoon.com/security-token-offerings-the-new-kid-on-the-block-e691397ea74b?source=rs

Security Token Offerings — The New Kid On The BlockFamiliar with ICOs? That’s great. But it’s time to move on because something new has just arrived to the neighbourhood: Security Token Offerings.Photo by Breno AssisInitial Coin Offerings (ICOs) have proven themselves effective in raising funds for entrepreneurs all around the globe. Despite the bearish trend in the #cryptocurrency market, there were 2.5 times more ICOs that successfully raise money in 2018.While the number of ICOs showed promising growth last year, the amount of money raised by all those projects only increased by 15% compared to 2017. Overall, the nearly one thousand projects that managed to convince investors in 2018 put together $12 billion.There is more. Only in the fourth quarter, the amount of Total Funds Raised declined (...)

#token-sale #ico #blockchain #security-token

About the Relationship Between Stablecoins and Security Tokens
▻https://hackernoon.com/about-the-relationship-between-stablecoins-and-security-tokens-a26e43f15

https://cdn-images-1.medium.com/max/960/1*5rPRagCX3lBVe1s6YBXPvw.jpeg

Crypto news last week were dominated by the headlines of J.P Morgan announcing the intentions to launch its own stablecoin dubbled “JPM Coin”. My initial reaction to the news were mixed. On one hand, the JPM Coin represents a strong validation for the stablecoin market and will certainly pave the way for new banks to join this trend. However, we can’t be oblivious to the fact that commercial-bank-backed stablecoins are likely to contribute to the fragmentation of the space and basically be a temporary solution until central banks decide to issue their own stablecoin(more about that in a future post). The launch of the JPM Coin made me reflect about a thesis I’ve been exploring lately about the relationship between stablecoins and security tokens. With stablecoins quickly consolidating as (...)

#invector-labs #ethereum #blockchain #cryptocurrency #security-token

The Security Token Anthology: January 2019 Edition
▻https://hackernoon.com/the-security-token-anthology-january-2019-edition-ab777282f5d7?source=rs

https://cdn-images-1.medium.com/max/1024/1*R7CCj9YUTpujgaa-hR41JQ.png

Another month and is time to release another edition of the Security Token Anthology which compiles some of my recent articles about crypto-securities. Last month I added articles about diverse topics such as governance, programmability and introduced the concept of multi-asset collateralized security tokens to refer to digital securities that represent a dynamic pool of underlying assets. The current version of the anthology includes 55 articles.Happy Reading!New Articles· Taking the First Step in Security Token Governance: Extending Security Token Protocols with Voting Rights(January 2019): ▻https://hackernoon.com/taking-the-first-step-in-security-token-governance-extending-security-to Some Ideas to Unlock Programmability in Security (...)

#ethereum #blockchain #security-token-anthology #cryptocurrency #security-token

STOs, ICOs, VCs: How do you know what fundraising method to choose for your #startup?
▻https://hackernoon.com/stos-icos-vcs-how-do-you-know-what-fundraising-method-to-choose-for-your

https://cdn-images-1.medium.com/max/1024/1*WGfzNCNZRrLCO2y2iurM5Q.jpeg

2017 and 2018 has shown us that dramatically huge amounts of money have been raised through ICOs, more than $15 billion (based on icodata.io). And in Summer 2018, it even overtook Seed and Angel investments:(Source: coindesk.com, crunchbase.com)Given the numbers, it’s easy to see why startup founders should select ICO/STOs as their major source of fundraising. Following my #10kqachallenge (where I interview 10,000 experts in different niches: formula.geekforge.io) I asked VCs and crypto fund founders and executives about this question, and here’s how they answered:Andrew Knight — Fund Manager at invictuscapital.comLet’s start with a process of elimination. To run an ICO, your company first needs to have the right product and/or service offering that aligns with the utilization of a token (...)

#venture-capital #crowdfunding #initial-coin-offering #security-token-offering