2019 Will Be the Year of the Security Token Offering (STO)

This is a guest author post, provided by On Yavin founder and CEO of Cointelligence. On has a law degree (LLB) and is also a certified Advocate by the Israeli Bar Association.

If 2017 was the year of the ICO, 2018 was definitely the year of reckoning. After too many high-profile scams and projects that simply failed to deliver, investors became wary and regulators became concerned. Such scams will be a whole lot harder to pull off in a fully regulated space such as security offerings. It’s looking very likely that 2019 will be the year of the security token offering (STO). Let’s consider the reasons for this.

ICOs vs. STOs: What is the Difference?

If you have even a passing familiarity with the crypto economy, you’ve surely heard the term Initial Coin Offering (ICO) numerous times over the past few years. ICOs started building steam in 2016, really took off in 2017, and suffered a PR nightmare in 2018, to the point where the end of the year saw numerous think-pieces about the death of the ICO.

So, what is a security token offering? Is an STO just a rebranding of an ICO?

The primary difference is that while an ICO could refer to fundraising through the sale of any sort of cryptocurrency, an STO refers specifically to the sale of a security token as opposed to a utility token. To understand why that distinction matters, it may be important to look at some of the issues that have contributed to the downfall of ICOs.

The Rise of the Security Token Offering

If you compare an ICO list and an STO list, you’ll still find that ICOs are more common. However, STOs have been on the rise since last year, as more and more people became concerned about the issues plaguing ICOs.

The crypto economy often draws comparisons to the Wild West days of the United States – a lawless frontier with an “every man for himself” attitude and hucksters out to swindle the unsuspecting. While some members of the community have done their best to self-police and drive out the scammers, governments have shown increasing interest in regulating this uncharted territory.

Perhaps the biggest area of interest to regulators is whether or not the crypto coins being offered by ICOs could be considered securities. While many projects proposed that their coins were utility tokens – coins intended to be used within the closed ecosystem of the project and not as a source of real-world value – many investors were interested in them for a possible return on investment (ROI). The thought process was that if a blockchain project took off and developed a robust economy, the token would increase in value beyond the initial investment and those early investors could sell their utility tokens for a profit. To the regulators, that looks a lot like a security.

If a crypto coin is considered a security, it is suddenly subject to the laws and regulations governing securities and an ICO or a blockchain company in its post-ICO phase could suddenly find themselves in trouble with the law for regulatory non-compliance.

In answer to this, many projects have decided to declare their tokens as securities from the outset and comply with the related regulations in their jurisdiction. At the same time, there’s been a movement to tokenize real-world assets as securities that can be tracked on the blockchain. Security tokens took off in 2018 and we can expect to see a lot of growth in this sector throughout 2019.

Things to Watch for in 2019

If 2019 is truly the year of the security token offering, what can we expect to see?

First and foremost, the rise of security tokens should lead to more acceptance by regulatory bodies, banks and world governments. This can be seen as a double-edged sword. While greater acceptance of cryptocurrency and blockchain technology should lead to mass adoption, it also means a loss of the dream of decentralization. We should expect to see a lot of pushback, especially from the old school crypto-anarchists.

Alongside STOs we’ll also see an increase in security token exchanges for the trading of the resultant tokens. Several exchanges have already launched or are expected to launch throughout this year. These range from existing stock exchanges such as the Malta Stock Exchange, working on adding a platform for tokenized securities, to current crypto OTC exchanges supporting securities, to brand-new platforms being launched exclusively for the trading of security tokens and tokenized assets.

Potential investors will still need to do their due diligence and be wary of scams. Just because a project is calling itself an STO and claims to be in compliance with securities regulations doesn’t mean that they are telling the truth. As with ICOs, anyone looking to make an STO investment will want to confirm the team’s experience within the industry, read the whitepaper, and otherwise perform enough research to feel confident in the project’s chances of success. It’s not enough to just visit an STO list, choose a project that sounds interesting and hand over your money.

Speaking of investors, anyone looking to launch an STO in 2019 needs to be aware that investors are going to expect more than they did from ICOs in 2016 and 2017. Those who came to the crypto world looking to get rich quick by throwing their money at any investment which promised unrealistic returns have moved on to some other scheme. The investors who remain are those who take their money seriously and will expect you to make a compelling argument for why they should back your STO. At a minimum, STOs should be able to offer an MVP, a polished whitepaper and website and a clear understanding of the market demand for their product or service. In short, it’s no longer to be enough to come to the market with big dreams and vague ideas.

Does This Mean the End of ICOs?

Security Token Offerings should not be seen as the replacement for Initial Coin Offerings. There’s still a lot of room in the crypto world for utility tokens and we suspect we’ll still see a lot of projects turn to an ICO for funding (although they may choose to call it something different to avoid anti-ICO sentiment).

The crypto economy is still in its infancy. Some may see STOs as a sign that it’s growing up but the growth likely won’t stop here. We’re saying 2019 is the Year of the STO and a year from now we may declare 2020 the year of something that hasn’t even been dreamed up yet. It’s exciting to be in such a new, volatile, and imaginative industry and we can’t wait to see what happens next.


Author Bio

On Yavin is the founder and CEO of Cointelligence; the data layer for the crypto economy. He has extensive experience as a serial entrepreneur and an angel investor, as well as more than 20 years of experience in the tech industry. On uses his deep hands-on experience and knowledge of online marketing to create winning strategies for ICOs, crypto, and blockchain companies. Having earned the reputation as a crypto expert, On continues to contribute to this industry in ways that advance cryptocurrencies and blockchain technologies. On has a law degree (LLB) and is also a certified Advocate by the Israeli Bar Association.

One Week Left of the RigoBlock Token Sale, Ends January 18th January 14:00 UTC

RigoBlock is scheduled to close its GRG token sale on Friday 18th January 14:00 UTC. GRG token holders will be able to establish a meritocratic and incentives-based framework for traders, separating the fee logic from the funds and create an incentive mechanism on top of the token.

The GRG token is the world’s first utility token for asset management. It is used as the basis of a rewards mechanism for specialized operators within the RigoBlock ecosystem, as they receive GRGs based on the value and the performance of a specific token pool. This allows token pools to be operated without fees for an alternative and fairer rewards mechanism.

RigoBlock is a blockchain protocol for decentralized asset management. A complete solution to develop applications for asset management (i.e. for the fund management industry). The RigoBlock protocol offers new types of incentives for managers and investors by aligning their interests through the Proof-of-Performance algorithm, by eliminating management fees and performance fees from the funds. RigoBlock graduated from the “Blockchain Business Solution” accelerator program by H-Farm in cooperation with Deutsche Bank and is a member of the Enterprise Ethereum Alliance and Cryptovalley Association.

To sign up to the token sale visit here.

SharesPost Trades First Security Tokens on Regulated Platform

SharesPost has successfully traded security tokens on a blockchain using a regulated alternative trading system, an industry first.

Read more Security Token pieces here.


In an industry first, SharesPost has completed a secondary trade of security tokens on its alternative trading system (ATS), with the transaction being registered on the blockchain.

The registered broker-dealer in the U.S revealed that on the 9th January 2019 it had successfully carried out a secondary trade of its BCAP tokens, issued by Blockchain Capital. These tokens represent shares in the Blockchain Capital III Digital Liquid Venture Fund and run on top of the Ethereum blockchain.

In a comment to Coindesk, John Wu, Digital Asset Group CEO told the publication that the trade was a “small test” in order to make sure that the system worked properly. Mr Wu went on to explain that the exercise marked “the first trade of digital securities by an Alternative Trading System and broker-dealer in which the ATS custodied the digital securities.” SharesPost had previously offered support for over-the-counter trading (OTC) as well as custody of digital assets, with future plans to launch order books further down the line.

SharesPost Founder and CEO Greg Brogger said via a press release on the company’s website:

“This is an important milestone for the digital securities ecosystem. Now companies can efficiently raise capital and provide liquidity globally by leveraging blockchain technology in a way that complies with securities laws. We are very excited to be connecting the more than 50,000 institutional and individual accredited investors using the SharesPost marketplace with companies and funds like Blockchain Capital that are leading the way. We believe that over time digital securities will join preferred and common stock as the mainstays of the private capital market.”

Blockchain Capital Co-founder and Managing Partner, Bart Stephens added that the company was “unique in its support of private companies and funds because they offer a comprehensive platform on which our investors can interact to enable liquidity.” Stephens also added that the company was hopeful that their platform will be a resource to investors and would “allow us to deepen our relationship with them over time.”

This security token news marks a step forward in the right direction, especially in the U.S considering the Securities and Exchange Commission’s (SEC) tight guidelines.


Discuss

Tweet us your thoughts on security tokens.

Planning a security token sale?

TokenMarket has executed more than 30 token sales and raised more than 350M USD for its client. Contact us to see how we can help you organize your sale.

The information provided on TokenMarket.News is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor, attorney or other professional to determine what may be best for your individual needs. See our Terms of Service for more.

US Lawmakers Propose New Legislation to Exclude Cryptocurrencies as Securities

Two Congressman for the United States have introduced a bill to exclude digital assets from being classified as securities.

Read more Regulation pieces here.


On December 20th 2018, two United States congressman introduced a bill to the House of Representatives which wants to disregard digital assets as being defined as securities.

Representatives Warren Davidson (R) and Darren Soto (D) introduced the “Token Taxonomy Act of 2018” which seeks to exclude digital currencies being classified as securities. In order to do this, Reps. Davidson and Soto ask that Congress:

“…amend the Securities Act of 1933 and the SecuritiesExchange Act of 1934 to exclude digital tokens from the definition of a security, to direct the Securities andExchange Commission to enact certain regulatory changes regarding digital units secured through publickey cryptography, to adjust taxation of virtual currencies held in individual retirement accounts, to create a tax exemption for exchanges of one virtual currency for another, to create a de minimis exemption from taxation for gains realized from the sale or exchange of virtual currency for other than cash, and for other purposes.”

The document goes on to outline that the Secretary of the Treasury must issue a set of regulations providing detailed information for returns on transactions in which gain or loss is accepted on digital currencies. Rep. Davidson further revealed plans to introduce new legislation in which a new “asset class” was created for cryptocurrencies and digital assets at the beginning of December. Davidson explained how this new law would:

“prevent them (cryptocurrencies) from being classified as securities, but would also allow the federal government to regulate initial coin offerings more effectively.”

The bill is a follow-up to a Congressional table held by Davidson earlier in the year in which 45 representatives from Wall Street firms and companies built on cryptocurrency told explained to lawmakers that the lack of regulatory clarity for ICOs and digital currencies, with some arguing that regulations were simply “outdated.”

Should this bill be accepted it would mark a huge turn in the regulation, classification and taxation of cryptocurrencies and digital assets in the United States.

Facebook to Develop Cryptocurrency for WhatsApp Transfers

Facebook is said to be developing its own cryptocurrency stablecoin for transfers within WhatsApp for the Indian remittances market.

Read more Market pieces here.


Mark Zuckerberg’s social media behemoth, Facebook, is rumoured to be developing its own cryptocurrency for transfers within WhatsApp, sources have reported. Facebook’s token will reportedly allow users to send and receive money, mainly capitalising on the current trend WhatsApp has seen in India’s remittance market.

The $541.5 billion giant is set to be launching the stablecoin pegged to the U.S Dollar at some point in the near future, although a date is yet to be set. Facebook’s coin is not expected to be launching any time soon as it works on the custody assets strategy.

Facebook’s primary reason for focussing on the Indian remittances market is very simple. According to data collected by the World Bank, India received nearly $69 billion remittances in 2017, equating to around 2.8% of the counties GDP. Combined with WhatsApp’s growing popularity in India, this lucrative move makes sense for Facebook.

WhatsApp has seen huge growth in India with over 200 million active users of the app. This number has dramatically increased in rural areas of the country since the cost of data has fallen; meaning that WhatsApp is now more accessible at a much cheaper price.

David Marcus, former PayPal president, joined the business in 2014, taking over Facebook’s Messenger service. In May 2018, Marcus announced that Facebook had been hiring blockchain developers under the radar for some time now as it gears up to launch its own token. In a personal a statement on his page, Marcus said:

“I’m setting up a small group to explore how to best leverage blockchain across Facebook, starting from scratch”

Facebook has changed its stance on cryptocurrencies dramatically since the start of the year. The group had repealed a ban on crypto advertising in June 2018 but is yet to do the same with the ICO ban.

If the social media giant is to launch this stablecoin, it could well be the first time a major project is delving into the world of cryptocurrency. Facebook currently has more than 2.5 billion users globally and creates more than $40 billion in annual revenue. With India’s 480 million internet users expected to rise to 737 million by 2022, the use of a stablecoin on WhatsApp means that Facebook is getting ahead of the trend now before its too late.

What can we learn from ICOs and what will be the driver for successful STOs in the future?

With Security Token Offerings (STOs) becoming one of the most discussed topics of the year, TokenMarket looks at what lessons can be learned from the ICO market in order to ensure the STOs success.

Read more Secuity Token pieces here.


Security Token Offerings (or STOs) has become a popular term in the crypto space over the last year. With the ICO market facing a tough time, many projects are turning to the world of STOs in order to progress and keep up with the ever-changing landscape that is cryptocurrency. Whilst some are welcoming the innovation, others are more sceptical citing that the lack of decentralisation is exactly what crypto was designed to combat.

TokenMarket has been working tirelessly to set a precedent in shaping the nascent market into an industry that can fulfil its potential and the potential of blockchain as a whole. Whilst we know that this is not everything that this market needs in order to succeed, we feel that these are the core pillars that the STO market needs in order to be as successful as the traditional securities market.

If you are new to the world of STOs then please read our guide on What are Securities and Security Tokens? to get up to speed.

Regulation and Legislation

ICOs were often criticised for its lack of regulation by governments as well as traditional investment firms. For some, they felt the ICO market was a “wild west” type scenario where investors were simply funding scam projects, buying into promises that were never delivered.

Pump and dump schemes were a popular way for illegitimate actors to make some fast cash, getting the community excited over a concept with no real means of product development. These schemes allowed the owners of the project to make a considerable amount of profit in a short period of time without ever having to do much work. High bonus structures also led to some members of a projects ICO community entering a project, receiving their tokens and selling them as soon as the ICO went on sale; devaluing the project and its token as a whole.

In some aspects, they were right. A report carried out by Satis Group in July 2018, identified that 80% of the ICOs carried out in 2017 were in fact actual scams. Whilst this statistic is alarming for many participants, it is even more alarming for financial regulators around the globe. For many, including the US Government’s Securities and Exchange Commission (SEC), statistics like these only further their opinions on ICOs being unsafe for investors.

For the SEC, Hong Kong’s Securities and Futures Commission and the European Securities and Markets Authority (ESMA) ICOs are still a bit of a challenge as they want to protect investors but also do not want to stifle innovation. It is a difficult thing to do but for the US Government, protecting its citizens from scams, and bad investments, is important. The American Dream wasn’t built on losing money, after all. However, the lack of insight into the ICO market has ultimately led to most ICOs being called STOs according to the SEC, with the government’s website declaring that:

“ICOs, based on specific facts, may be securities offerings, and fall under the SEC’s jurisdiction of enforcing federal securities laws.”

Though ICOs do have some flaws, they are a fantastic way for smaller businesses to gain funding while putting very little capital up. A new wave of funding a project, which ensured that the business was funded as well as giving the participants access to a platform they were interested in, meant that it changed the traditional rules of investment. There are also some fantastic ICOs in the space which is truly trying to change the world for the better. But, whilst this space is still young there will always be a “wild west” market so to speak. However, ICOs created a playing field in which all participants were on the same level.

ICOs, in essence, tore the rule book up. For most projects, almost all of them were funded purely by participants, way before venture capital (VC) firms even considered getting involved in the space. It meant that projects were funded by participants who wanted to see them succeed, creating a greater sense of community for those involved. Mass scale groups are created with the projects owners, developers and participants all placed in the same environment; taking questions about the project as well as gaining an insight into what the community wants.

What the ICO market could not do in terms of regulation, the STO will be able to help change the opinions of the regulators. Security token offerings are exactly what they say they are: securities. This means that securities laws, from whichever jurisdiction they are carried out in, apply. For the UK, the Financial Conduct Authority (FCA) will oversee the STO market meaning that strict regulation, laws and penalties apply to the market as well as the issuers carrying out such offerings.

Whilst the term security token offering is rather all-encompassing, having laws which will apply to each offering on an individual basis will mean that regulation must be adhered to. Dependent on what these security tokens are offering, whether it be; real estate, shares, equity or natural resources like gold, then these specific subsets of laws will apply to each case.

Placing these securities on a blockchain, an immutable, incorruptible and detailed ledger in which everyone has access, means that these tokenised securities will, in fact, create a more financially transparent place to operate within. There will be less room for any fraudulent activity to take place and, with the same legal penalties as securities fraud, one would imagine there would be far fewer scams around. Pump and dump schemes that were once rife in the ICO market will be become harder to enact with more severe penalties being handed out. The maximum sentence for securities fraud in the USA is life imprisonment whilst the average sentence in 2015 was around five years. In the UK, the maximum sentence is around ten years, with the average sentence being around six years depending on the scale of the crime. This should be enough to scare any fraudster off.

For the regulators, this level of security and overall protection that it gives investors means that they are more open to the idea of STOs taking place given that investors are looked after. The SEC has

Markets and Interest

Crowdfunding is still a fairly new concept and has been around for just over 10 years. As of 2018, Fundly, a crowdfunding platform, estimates that global crowdfunding platforms have received $34 billion. However, with traditional crowdfunding, projects give away a percentage of the company’s equity in exchange for funding. This is where ICOs changed the way that the projects could raise funds. In that respect, ICOs truly pioneered the way that projects were funded.

The market attracted some fantastic projects and also saw many people gain a new interest in the world of cryptocurrency and blockchain. The ICO market is still a huge market for many investors. At the time of writing this article, ICOs had raised over $7.5 billion in 2018 according to ICO Data.io. Whilst this is still only a fraction of the estimated $338.4 billion raised by Initial Public Offerings (IPOs) in 2017 according to EY’s Global IPO Trends, it is still a huge number considering that these companies were giving access to a platform that had not yet been built. EOS, the infrastructure for building decentralised applications, for example, raised over $4.1 billion in its ICO alone, showing how powerful the ICO space can truly be.

ICOs were of course not without their issues, with two of the biggest areas being the misplacement of funds as well as delivery on a final product. In a study carried out by the Boston College, Hugo Benedetti and Leonard Kostovetsky found that around 56% of ICOs disappear within four months of their public sale. Digital Tulips? Returns to Investors in Initial Coin Offerings found that traditional ICO investing can be a risky business, something that the financial regulators like the SEC have thought for a long time. So, what happens when traditional securities are suddenly tokenised?

Being backed by real assets as already previously mentioned means that these tokens are working within traditional securities markets. If we take the example of real estate, which is on track to becoming a $4,263.7 billion industry by 2025 according to Grand View Research, then tokenising a share in say a property development makes sense. According to Ryan Serhant in an article by Rachel Wolfson titled A First For Manhattan: $30M Real Estate Property Tokenized With Blockchain, he states:

“With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders. Tokenization is paving the way for a new forefront in real estate development.”

For the use case of real estate, as well as many others, then it makes sense to fund a project through a tokenised system. Providing total clarity over who has invested, how much they have invested, as well as the issuers now having a total overview on how their project has been funded on the blockchain, makes sense. Eliminating traditional financial obstacles means that property developers and investors all have complete transparency over funding and the project as a whole. Tokenised securities, it seems, have a bright future.

Exchanges

Even though the ICO market as a whole has seen a steady decline since its peak in January, the secondary market in which these coins can be traded is still thriving. Many exchanges, including the likes of Binance, Coinbase and Bitfinex offer users the chance to buy and sell these tokens on a secondary market, almost the same as the traditional market trading that is carried out by the securities industry. However, there in itself lies some issues.

With little to no regulation on these exchanges, it opens the market up to illegitimate actors and those simply wishing to make some money fast. Though processes like Know Your Customer (KYC) and Anti-Money Laundering (AML) are in place and have shown a maturity within the crypto space, these are not in place across the entire market. Some view KYC/AML as a “pointless process” whilst others view it as a sign that if investors are serious about the crypto industry then they should have no fear of getting involved within these processes.

Whilst there are still many conversations about how these security tokens will be traded, what is known is that they will be monitored, stored and exchanged in a much more compliant and regulated system. With financial authorities like the SEC, FCA and ESMA all having a close watching eye on the market there is less room for scams, fraud and errors. As previously discussed, penalties in respective jurisdictions can start from five years and go up to life imprisonment, meaning that governments will take STO fraud as seriously as they do with traditional securities fraud.

The STO combats a lot of the issues and places them within a security trading environment, placing them in the $77.566 trillion a year securities market. Polymath, one of the first STOs in the space, estimates that STOs will become a $10 trillion a year industry by 2020, optimistic but not unrealistic if the current trends and interest in the space carry on. Should the same level of investment that happened with ICOs in 2018 then there is no reason why STOs should not succeed.

Final Thoughts

The ICO market saw a global boom at the end of 2017 and early 2018 creating thousands of new projects and a great community, however with that also saw a flood of illegitimate actors enter the space with bad intentions. With around $7.5 billion invested in these projects throughout 2018, it is clear that the ICO market is still not finished. Yet, the idea of an STO market excites a lot more of traditional investors due to it being more regulated, compliant and financially secure.

The wave of STOs incoming should be welcomed, highlighting the gap in the market for traditional tokenised securities. With the right interest and the same level of buzz that flowed through the ICO market, there should be no stopping the next wave of digital investment. We, for one, are extremely excited about the prospect.


Discuss

Tweet us your thoughts on security tokens.

Planning a security token sale?

TokenMarket has executed more than 30 token sales and raised more than 350M USD for its client. Contact us to see how we can help you organize your sale.

The information provided on TokenMarket.News is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor, attorney or other professional to determine what may be best for your individual needs. See our Terms of Service for more.

TokenMarket Presents ‘The Evolution of Security Token Offerings’

TokenMarket is to host a second UK meet-up titled ‘The Evolution of Security Token Offerings’ designed to further educate attendees on the STO market in January of 2019. Read more on the news here.

Read more Security Token pieces here.


TokenMarket has announced that it will be hosting the second of its security token offering meet-ups in the UK, titled ‘The Evolution of Security Token Offerings’. After two highly successful meet-ups in both London and Singapore which outlined what security token offerings (STOs) are, the award-winning advisory and token issuance platform have now sought to explain how these offerings will evolve in the future.

The event will see TokenMarket Vice President of Business Development, Ryan Hanley, host a panel of industry professionals discuss where the STO market is heading for 2019. With Thomas Power, Member of the Board of Directors at software company 9 Spokes, already confirmed as a panellist, the panel has already set a high standard. Expect more panellist announcements to come in the coming weeks via TokenMarket’s social media channels.

TokenMarket would like to invite all blockchain, fintech, cryptocurrency enthusiasts and professionals to join us for complimentary drinks, food and discussion around how the evolution of security tokens can help to revolutionise the crowdfunding space.

Please note this a ticketed event taking place at Foyles on the 15th of January, beginning at 6:30pm, but arrive early to avoid disappointment. Ransu Salovaara, TokenMarket CEO and Co-Founder, said:

“Whilst our previous events explained the differences of STOs in comparison to ICOs, this event will be different. Our panel of seasoned blockchain and crypto veterans will delve deep into the world of security tokens and explain what is needed for the market as a whole to thrive in the forthcoming year. I am excited to welcome back so many of our previous attendees to discuss the further development of the STO market.”

Register for tickets to ‘TokenMarket Presents: Let’s Talk Security Token Offerings’ HERE.

TokenMarket received confirmation in September 2018 that it would join cohort four of the FCA Regulatory Sandbox to test and measure the implementation and the practice of tokenising equity in the UK. TokenMarket will provide insight and use cases on how tokenisation can deliver as well as how the market as a whole needs to evolve in order to be a success in 2019. This new asset class, kept solely on the blockchain, will allow investors to bring their shares in a company into the 21st Century.

Rigoblock Successfully Distributes First Round of its GRG Token Airdrop

Rigoblock has begun to distribute its GRG Tokens via an airdrop with the first wave of whitelisted participants successfully receiving their free tokens.

Read more ICO News pieces here.


Rigoblock, the decentralized asset management protocol, is pleased to announce that the first round of its airdrop release has begun to be distributed to those who passed the whitelisting process.

The airdrop saw an initial selection of successful whitelisted participants in the Rigoblock protocol given a free GRG Token, with the distribution of these tokens being taken from the ‘bounties’ pool of the total token supply. The initiative came as a reward to some of the Rigoblock projects earliest followers. Gabriele Rigo, Rigoblock Founder, said that:

“The GRG Token airdrop gave users the chance to have a real hands-on experience with how the Rigoblock platform will work and how they could use the tokens. We are thrilled that our users were so active throughout the airdrop and were pleased with how many tokens we were able to distribute as a small reward to those early believers of our project.”

The GRG Token is the first utility token for asset management designed to be used as the basis of a rewards mechanism for specialized operators within the Rigoblock ecosystem, as well as being an access token. Participants receive GRGs based on the value and the performance of a specific token pool. This allows token pools to be operated without fees for an alternative and fairer rewards mechanism.

For all those looking to use the Rigoblock platform and experience the true benefits that the protocol has, make sure that you sign up BEFORE December 18th 2018 . The token sale date is December 18th 2018 and users will be unable to participate if they have not carried out KYC/AML processes.

You can sign up to the Rigoblock token sale here.

Civic: Life After the Token Sale

This is a guest author post, provided by the team at Civic, for information about Civic visit https://www.civic.com/

The latest in our Life After the ICO series is Civic; the network that gives everyone control of their personal identity. Vinny Lingham, Civic Founder and CEO, gives his account of life after the projects token sale.

Read more Opinion pieces here.


While the hype around ICOs and token sales continue to fluctuate, the scepticism around these token-related events continues to be a concern both for the industry and for regulators. The scepticism isn’t unwarranted. According to CoinDesk, the majority of ICOs fail within four months, and according to TechCrunch, scam ICOs and token sales raised $1 billion in 2017. But these numbers are not the case for all ICOs or token sales.

The goal for Civic was never the vanity headline. Civic has always been a company with a mission: to give everyone a digital identity that they control. From the beginning, we knew this was an ambitious mission, and it wasn’t something that would happen overnight or without community support for the idea of an identity ecosystem. There is a lot that has happened in past year, which has brought Civic closer to making this mission a reality including partnerships with Anheuser-Busch InBev, Brave, and Telefonica as well as over 130 others; thousands of active users; and the world’s first crypto beer vending machine. Plus, there are a lot of exciting things on the horizon.

Looking Back

The token sale was just the beginning of an exciting journey. Since July 2017, Civic has continued to introduce innovative updates to the Secure Identity Platform (SIP) and new products, all focused on making secure, user-friendly identity verification solutions accessible to more people via the Civic App. We’re continuing to see the Civic ecosystem expand, making the Civic Secure ID reusable in more places and bringing blockchain-based identity verification to life through unique use cases. Highlights include:

  • A new identity verification product, ID Codes. ID Codes is like Twitter’s blue verified badge, but it can be used for any company across the internet, not tied to one social media website. It helps anyone to securely verify people that you’re interacting with online and rebuilds trust on the Internet.
  • The world’s first crypto beer vending machine. We brought a live prototype to Consensus, where Civic App users could scan the QR code on the vending machine to anonymously verify that the user was over 21, without ever sharing the user’s age or birthday.
  • A partnership with Brave. We’re partnering with Brave to bring identity verification to Brave’s over 21,000 verified publishers and working together to combat some of the biggest privacy challenges on the Internet.
  • App-to-App functionality. With Civic Connect, any of the over 6 million Android or iOS apps can integrate Civic to authenticate users without ever requiring a username or password.
  • A partnership with Rivetz and Telefonica. We’re partnering with both Rivetz and Telefonica to create a hardware reinforced Civic App that will be available to the entire Telefonica network.

Another big update was the acquisition of Identity.com which is now the home and name of the decentralized identity ecosystem that Civic is spearheading. We see Identity.com as the foundation for the future of identity, and we are committed to completely open-sourcing Identity.com. In fact, Civic is actually built on top of Identity.com, similar to how Red Hat is built on top of Linux. When we completely open source Identity.com in 2019, we’re looking forward to seeing other companies, like Civic, join the ecosystem and contribute to the identity transformation. Highlights include:

  • Open source libraries and smart contracts. These libraries and smart contracts make it easy for ecosystem participants to seamlessly integrate with Identity.com, underscoring our commitment to building Identity.com with standards that ensure community and interoperability.

Looking Forward

This is only the beginning for both Civic and Identity.com. Civic is not a quick band-aid fix for identity solutions, and we are on a journey that will transform the way we think about identity and how we prove who we are in the modern world.

In 2019, we’re looking forward to getting the open-source version of Identity.com off the ground and welcoming identity Requesters and identity Validators to the decentralized ecosystem. We’re also looking forward to continuing to expand our partner network, and we’re looking forward to more partnerships and new use cases that put an actionable digital identity into more people around the world.

We hope you’ll continue to follow the Civic journey as we drive the identity transformation forward.


The information provided on TokenMarket.News is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor, attorney or other professional to determine what may be best for your individual needs. See our Terms of Service for more.

TokenMarket to Speak at Verasity Meet-Up with Wine Tasting Courtesy of WIV

Vice President of Business Development at TokenMarket, Ryan Hanley, is to speak at the Verasity and WiV blockchain meet-up in London.

Read more Media pieces here.


TokenMarket’s Vice President of Business Development, Ryan Hanley, is set to speak at the Verasity and WiV Blockchain meet-up on December 6th 2018. The meet-up, which is designed to bring together a mix of businesses and individuals in order to discuss the current state of the blockchain industry as a whole.

The event, which is taking place at WeWork in Kings Cross, London, will give attendees the opportunity to share industry news as well taste some fantastic wine, provided by WiV. Each individual speaker is set to cover an interesting topic pertinent to the current state of the blockchain space.

Ryan Hanley will be outlining security token offerings (STOs) and the next steps in equity fundraising. With extensive knowledge of the ICO market, as well as how the industry has changed over the last 12 months, Hanley will explain why STOs will change the way in which people are able to invest their money.

The agenda also includes; Chris Gale, Versasity Co-Founder, who will be bringing to life their experience during their successful ICO. And how they followed on by adjusting their business to help other organisations with their projects.

Tommy Jensen, CEO and Co-Founder of WiV will be following on with a detailed description as to as to how WiV is looking to change the way in which investors are able to access wine. By tokenising their assets and providing them with a clear view and point of sale on the blockchain.

Finally Nick Martin, CEO and Founder of Wine Owners, will be explaining why fine wine is one of the most sought-after assets for the high net worth market. Martin’s breakdown is set to explain why the $220 billion wine industry appeals to those with considerable wealth, detailing why wine has become the asset in today’s market.

Tickets for the Verasity and WiV wine tasting meet-up are completely FREE and can be found here. Make sure you are quick though as the tickets are already selling out in high numbers.