so many projects related to lending now. Tell me, what is your advantage over the others? What makes you different? are there any conditions for loans?
Our major advantages are:
1) Transparent token economy and structure. Since we are security token from the very beginning, we do not need to play this wording games of "Do not talk about the fight club, just invest". We clearly state in our offering documents that we will share 100% of company profits among tokenholders and the clear motive for investing is to get a share of future profits.
2) We understand traditional financial products and know how to adapt them to the crypto market. We envision a series of credit products including a real credit card with a credit limit. This is something that nobody has done in crypto before. Our credit card with a grace period is brilliant and can be a lifesaver for the crypto investor.
3) We have plans (though not in the first development stage) to develop a decentralized cross-blockchain escrow that (if successful) will allow us to securely and with full decentralization tokenize crypto assets on any blockchain and put them on Ethereum network to securely manage crypto collaterals. This is really groundbreaking (but very challenging).
That's an interesting approach. What is the main thing people wish to avoid when it comes to being regulated as a security?
When it is not a security - you are pretty much out of the legal field. Basically, you can do almost whatever strikes your fancy with the funds. I know, there are a whole bunch of smart contract tools to avoid that, but considering that a huge amount of ICO proceeds are in bitcoin - it is more or less up the founding team what to do with your investment.
When a security, you can not do a lot of things (most of them are bad for investors anyway). Investors have a legal protection. On the downside - your advertising and marketing are limited too. For example, managing a bounty campaign would be a pain. Reaching out to McAffee and pay him for a twit would be a major headache too. So honestly, you can not do any dirty ICO marketing tricks (or let's say you will need to avoid the most effective ICO marketing tools).
A very insightful response, I've never known any of these details. I've just always been told, security token bad, utility token good with no further explanation. With your insight I can see security tokens really are bad if you're like 90% of ICO's and are just planning on scamming people!
If investing in a security through your company affords me legal protections, that sounds a whole lot better than how my last investment has turned out.
