VMC Announces First STO in the Netherlands on the Stellar Blockchain
VMC, a Dutch startup looking to revolutionize the mass transportation industry, has just announced they will holding their own STO. The STO will be done on the Stellar Lumens blockchain.
VMC is looking to digitize payments for mass transportation. In doing so, they are bringing crypto to the Netherland’s mobility networks including anything from rideshare apps to airlines. To crowdfund their startup, VMC will be holding their own STO for the sale of their security token, VMC-ST.
What makes this STO interesting is that it will be one of the few such token sales held on the Stellar Lumens (XLM) platform. Stellar has been seen by security token platforms like Smartlands as being the “prime fit” for security token issuers and Stellar’s founder Jed McCaleb recently spoke on this same topic in an interview.
If successful, VMC’s STO on Stellar could bring in many new security token issuers to the blockchain network.
VMC’s recent announcement of their STO is building off the startup’s more concrete successes. For example, the up-and-coming firm recently collaborated with Arriva and Deutsche Bahn to create blockchain-powered busing systems.
The basis of VMC’s idea is the dual token economy. Fees will be charged through the platform’s native utility token, VAI, and investors can purchase stake in the company via their security token, VMC-ST.
According to VMC, holders of VMC-ST will receive some 40% returns dependent on how long they are owners of said tokens. Rather than pay dividends, VMC will instead be rewarding security token holders with direct revenue from user transactions. The more success VMC has, the more their token holders earn.
In their announcement, VMC said:
“The VMC mobility platform is open and free for everybody to build applications on. However, corporate users pay a small transaction fee. We do not only use this fee to further build on our platform, we distribute a percentage of revenue to you. We are convinced this approach fits better with the core principles of blockchain technology and our mission to make mobility better connected. “
The company has said that their STO does not fall under the supervision of the Dutch Authority for Financial Markets. Yet, the regulatory situation regarding their STO is still uncertain. A date for the STO is still yet to be announced as well.
Do you believe VMC holds promise? Will you be following the project? Let us know your thoughts in the comments below.
Image courtesy of VMC.