Kriptomat will Launch the Second-Ever Security Token Offering on The DESICO Platform
As of April 4th 2019, Kriptomat will launch the second Security Token Offering (STO) on the DESICO platform. Kriptomat’s CEO believes that providing users with the ability to purchase profit and revenue sharing securities will only make the company more successful.
Kriptomat Launches Security Token Offering via DESICO – Explained
Kriptomat is a regulated platform for users to trade and store cryptocurrencies. Users can pay for goods and services through a variety of peer-to-peer payment systems.
Currently, Kriptomat has licenses which allow it to provide currency conversions including the exchange of a virtual currency against a fiat currency.
The company is headquartered in Slovenia and licensed in Estonia. The latter qualifies Kriptomat to be regulated under European Union (EU) legislation. Kriptomat is also a founding member of the International Association for Trusted Blockchain Applications (INATBA), which is supported by the EU Commission.
Now, the enterprise has decided to launch an STO which will go live on May 9th, 2019.
€1.8 million worth of digital securities will be available during the initial offering.
According to Kriptomat CEO Srdjan Mahmutovic, the company decided to launch an STO because it enables users to purchase profit and revenue sharing securities. This, he believes, will spark a greater motivation behind users to help the company succeed.
Additionally, DESICO CEO Laimonas Noreika strongly supports the Kriptomat STO:
“We feel this is a fantastic opportunity and perfect match for our technology. Kriptomat is a great product, built by an experienced team with a superb track record and huge ambitions.”
How Equity and Other Assets are Becoming Tokenized through Security Tokens
The benefits of distributed ledger technology (DLT) have already started creeping into the realm of real-world assets.
As opposed to the regulatory ambiguous Initial Coin Offering (ICO), STOs feature clear requirements. This is due to the world’s leading securities regulator— the US SEC— declaring that the majority of ICOs constitute securities, and therefore must abide by the commission’s existing securities laws.
As a result, companies have left the ICO behind, and turned to the STO as a viable alternative.
For more on the functionality of security tokens, be sure to review our comprehensive security token guide.
What do you think about Kriptomat’s STO? Will the DESICO platform become a home of STOs in the future? We want to know what you think in the comments section below.
Image courtesy of DESICO.