Compliant Security Tokens Made Easier Is the Target, MOBU Launches Its Pre-ICO Token Sale
MOBU, a “decentralized platform and end-to-end solution” for the launching of compliant security tokens have launched their pre-ICO token sale. Aimed at ICOs that want to issue a security token, MOBU offers a blockchain solution that deals with the legal, technical, and regulatory requirements and challenges involved.
The term ‘tokenization’ refers to how “crypto tokens represent a particular fungible and tradable asset or a utility that is often found on a blockchain,” as per Investopedia. This means that in the future, the rights to nearly all assets will be easily and securely tradable online, mostly via blockchain technology.
The issue MOBU are addressing goes to the root of the way tokenization is being approached by blockchain platforms and companies alike: most aren’t certain of what tokenization really means and what it entails. The drive to make things digitally present, with all the advantages that would bring, from insurance policies to real estate to intellectual property, will be fraught with obstacles and complications. This is true for large tokenization platforms (as Ethereum is being used for), so imagine how difficult it can be for upstart projects that lack the legal and technical resources to tackle tokenization. Utility tokens are difficult enough, but the creation of security tokens is another matter.
Barriers to Tokenisation
Frikkie van Biljon, CTO of MOBU, explained why he believes the issue hasn’t been properly tackled until now in an interview with TechBullion:
“Everyone is scared of the mammoth task of solving this problem. There are big regulatory and legal challenges to solve before one can launch a security token. It takes a lot of time and money to launch a security token – although this fits blockchain technology like a glove. We want to enable people to utilize the transparency and immutability of the blockchain. Because MOBU will provide services a user can pay with the MOB20 token and there is no underlying value of ownership with no dividends nor profits back to token holders. The SEC stated ETH is a utility token because it is a decentralized platform(for applications) and on the same basis MOBU is a decentralized platform(for security tokens).”
Comprehensive Approach to Securitization
With regards to the design of the MOBU ecosystem, van Biljon had this to add:
“In the Mobu ecosystem the token issuers (real future companies on MOBU) post bounties to get service providers, Developers earn MOBU tokens for creating smart contracts, KYC providers pay MOBU tokens to join the network/ecosystem, Investors pay MOBU tokens for KYC process, legal representatives and escrow providers earn MOBU tokens for offering services. Mobu additionally will acquire bank partnerships to ensure fiat can easily be converted to crypto all around the world and MOBU tokens can be earned worldwide. Furthermore, Lockup utility will ensure scarcity of MOBU tokens!”
In essence, this means that MOBU decentralizes the whole process of creating the security token. Instead of projects needing to reinvent the wheel to suit their business needs, they can leverage others’ expertise and finished work. Despite the recent turbulent conditions in the crypto market, the rate of ICO releases is abating very little, so there looks to be a consistent demand for such a solution in the future.
As mentioned, MOBU launched their pre-sale on September 1st which runs until September 15th, which fits with their broader roadmap of launching the beta version of MOBU by July 2019. In Q1 2019 the token will be launched on exchanges and has been extensively reviewed by crypto publications, ahead of the main ICO which starts this year on December 1st.
Compliant Security Tokens Made Easier Is the Target, MOBU Launches Its Pre-ICO Token Sale was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.