STOBox Platform is a private blockchain ecosystem for issuing, managing and trading of security tokens backed by real assets of issuers. The platform aims to act as a vehicle for global tokenization drive.
Notably, the platform leverages existing technical framework and blockchain core by Stellar and Distributed Lab which in turn means that there is no requirement for an early stage development or large investments into the product. In addition, it also provides a high level of tokenized assets safety and still remains transparent and unavailable for forgeries. STOBox platform also consists of an internal OTC trading tool, which allows you to trade tokens issued on the platform. The firm is currently running an STO and aims to raise $1,000,000 to further scale up its operations.
The platform offers a number of tangible benefits:
- Provides the full service for tokenization or STO for regular business customers
- Reduce the transaction costs of buying / selling corporate asset
- Lower geographic barriers for venue fundraising and development
- Provides an opportunity to invest in promising global projects for KYC/AML registered
qualified and non-qualified investors.
- Lower geographic barriers for venue fundraising and development
The platform intends to have the following revenue streams after its launch:
- Security token issuance
- Investors Relations and Management services
- Administration and Cap Table Management services
- On-platform services, Ad/Promotion services
- Affiliated Vendors, trading and brokerage services (in-future)
STOupdates got in touch with Gene Deyev Co-Founder and CEO of STOBox to know more about how the platform aims to create a solid impact in the tokenization and security token industry. Read the following analysis to have a detailed view of benefits offered by the STOBox platform.
Problems in The Current Market
“The market of digital securities is a newborn. Lack of regulation, early stage market formation, lack of adoption, current crypto bearish-market – all these factors give huge opportunities for early birds. However, due to massive frauds and scams in ICO space, general public still fearing in participation in another rally. So the market would have to be more prepared for massive adoption. Our mission at STOBox is to open up the possibilities of tokenization to international businesses and investors, providing top quality services for every participant.” said Gene.
Gene stated that even though the crypto community is seeing regulations as unfriendly, but he sees regulations as a positive for traditional finance community and considers them as an important step for liberalization. STOBOX INC. is a registered US corporation and comply with both US and International Law when it comes to operations.
“Traditionally rigid securities can now be tokenized on blockchain and traded 24/7 borderless frictionless. That’s something world of finance never dreamt of and now it’s here to be adopted. Regulatory compliance is a very positive sign as international rules will form the framework for future operations.” added Gene.
OTC Marketplace for Security Tokens
Once the security tokens are issued, the STOBox Platform lists tokens on its internal OTC Platform for KYC/AML compliant investors. The platform consists of a system of internal wallets where members will be able to safely store and exchange digital valuables among each other.
“Technically, we are working on OTC, but we do not plan to launch it in 2019. Upon launch it will be only for accredited investors. However, we oversee what’s we call an “Ethereum Gate”, a mechanism that allows an export of Security Tokens to Ethereum blockchain for multiple purposes including trading. It is important for STOBox Platform to communicate with other exchanges and marketplaces” said Gene Deyev.
Benefits for Issuers and Investors
Benefits for Investors: The platform makes it easier to choose the right objects of investments, because it lists security tokens issued by verified companies, and in addition also provides full business information and structure of the security token ownership. Also the investors will get confidence, working with custodials, and convenience while conducting all transactions with fiat and cryptocurrencies. Legal framework & protection are very important and seeing this, only KYC investors will be allowed on the platform, and all issuers are legally compliant. Safety of the private blockchain would be another added benefit.
Benefits for Issuers: The issuers will get access to much needed liquidity, which has increased compared with traditional private equity and securities, therefore global investors can invest in them. Ordinary investors will also be able to contribute in investments, because STO lowering the investment threshold. Another benefit is cost saving, most of the processes to prepare STO are similar and will be managed by the platform’s professional team members from Eastern Europe, which brings in a huge cost-savings to the overall process. And last but not the least – STO period is shorter than the IPO cycle and is much more compliant than ICO which in turn will attract large institutions and investors to enter.
Role of STOBox to make tokenization more effective and accessible
Gene stated that tokenization and security tokens make market more democratic. Anyone can pitch his idea and offer to invest in it in compliant and safe way.
He further added “Our role is to help any business, small or big one. That’s why we choose “All-in-one platform” conception. Our business-friendly team conducting all work about STO, providing full support for projects. We also believe in tokenization and investments of professional human skills, like music or sports. Millions of fans would love to support it’s famous boxer or a rock-star by holding valuables issued in a form of security tokens.”
A Global Borderless Platform
The platform aims not to focus on countries or markets, but on quality of issuers and investors. Gene noted that with his experience of time spent in Asia, Pacific and Europe he has has concluded that everybody is looking for decent projects to invest. He believes that the concept is not regional anymore, especially when the customers are from all over the world.
“Definitely we are focusing on the most deep markets like Asia and North America but the main focus remains on quality. One releases the most number of technological Patents, the other ‘sits’ on the old money of the World. I believe the most interest would be made by those who could bring bridge those gaps. With STOBox, our main task is to get decent traction and build public awareness. It may take a year or so, but that’s most important step in today’s early stage. Then we consolidate the knowledge and experience to expand.” said Gene.
When asked about his views on the decline of ICO and the rise if STO market, he concluded by saying “The ICO market showed us how the world would look like if there are zero regulations. With Security Tokens the most difficult aspect would be credibility. As most ICO’s had zero spirit of law and the fact the most people recognize STO as an evolution of ICO – I think these are negative factors for short-term optimism. On the other hand, proper international regulation and responsibility of key market players would bring the market to “Wall Street on Blockchain” model. It may take few years, but the direction is set and it’s definitely would evolve into global digital market of securities.”
Though Gene personally believes that security tokens are not for everyone to invest in and investors should be careful before blindly investing. The decisions should be weighted and based on a deep research as security token offerings brings the same risks as traditional investment or venture funds.