Monday, May 27, 2024

Blockchain event to highlight ‘security token offering’

Token News Asia, in collaboration with Blockchain Space PH, recently hosted a primer event in anticipation of the “Decentralizing the Future” conference.

Photo shows (left to right): Bloom Solutions chief technology officer Luis Buenaventura, TagCash founder Mark Vernon, and Satoshi Citadel Industries co-founder and chief community officer Miguel Cuneta

The event aims to gather key industry players who will tackle the concept of security token offering (STO) and its presence in the ever-shifting blockchain landscape. It’s set for November 10 at The Peninsula Manila Hotel in Makati.

During the pre-event meetup, TagCash founder Mark Vernon, Bloom Solutions chief technology officer Luis Buenaventura, and Satoshi Citadel Industries co-founder and chief community officer Miguel Cuneta led the STO talks to shed light on the concept and explain its definition.

Comparable to initial coin offerings (ICOs) when it comes to issuance of a crypto coin or token that represents an investment, an STO alternatively represents an investment contract for assets like bonds, funds, and even a real estate investment trust.

Cuneta mentioned during the blind dating-themed talks that he conversely believes tokenized form of security lessens the impact of some of the advantages brought by blockchain technology like immutability and not relying on a central point of control.

He also noted that ICOs were a thing in 2017 which raised money through cryptocurrency-based crowdsourcing. However, many of them ended up as scams and are considered worthless today.

Vernon, Buenaventura, and Cuneta likewise further differentiated an STO from an ICO and an IPO. For starters, they discussed how it is regulated on a global scale. Currently, STOs are banned from countries like China, South Korea, and Vietnam. Still, it is undeniable that STOs show lower risks compared to an ICO since they are compliant to securities laws that ensure transparency is observed and are backed by real-world assets which can be assessed easily for its pricing configuration.

STOs are a new breed of investments made accountable and tout advantageous ways that can greatly benefit investors. Middlemen like banks and brokerages are removed from the equation which reduces costs, while the blockchain technology itself enables an integral recording of the investment ownership that is needed on both sides.

But with the cutting of middlemen comes a heavier administrative burden for the companies and the restriction on many countries contribute to a reduction in the population of possible investors.

With STOs on the rise and with more companies interested in the benefits it brings, the upcoming conference this November could not have come at a better time. Attendees will be exposed on how blockchain is redefining the finance, trading, and gaming industries and witness blockchain-based projects like the decentralized stablecoin and community governance platform MakerDAO and the world’s first fully licensed blockchain lottery Quanta.


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