Investors In Dapper Labs Will Soon Be Able to Convert Their Securities to Tokens
Recently, the Warner Music Group announced it was investing some $11.5M in Dapper Labs, the company responsible for creating CryptoKitties. Pending SEC approval, investors in the company will soon be able to ‘tokenize’ their company stock.
Could tokenized securities be coming to one of the largest dApp producers on the Ethereum blockchain? It seems so, with Dapper Labs confirmed to be pending approvals from the SEC. In the future, investors will be able to convert their securities to tokens for a platform soon-to-be-announced.
The news comes shortly after it was announced that Warner Music Group would be making an investment in the company to the tune of $11.5M. The approval for the idea is still pending from the SEC. The regulatory agency will have to decide whether these tokens will count as ‘utility’ or as ‘securities.’
However, the possible tokenization of equity in Dapper Labs underscores how fast the company is growing. According to Jeff Bronikowski, VP of Business Development at Warner Music, the investment simply ‘made sense’ given the direction digital collectibles are going.
“When I was in college, you’d walk into someone’s room and you’d see 200 CDs and you would say, ‘That guy’s a big music fan.’ And now you just see somebody with a music subscription service and some playlists…We think that as people spend more time crafting their persona in the digital realm, digital goods and collectibles is a great way to express that fandom.”
It’s unclear what kind of platform Dapper is building which will include its mysterious token, but we will hopefully get some information by year’s end.
Will companies someday opt to tokenize their stocks as a way to increase their investor pool? Let us know your thoughts below in the comments.
Image courtesy of BlockchainGamerz.