CardRates.com takes an in-depth look at how TokenMarket is redefining the way startups and growth companies achieve funding, whilst providing insights into past, current and future trends in the tokenisation landscape.
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Managing Editor for CardRates.com, Adam West provides an analysis on TokenMarket and the world of STOs whilst sitting down with TokenMarket CEO and Co-founder Ransu Salovaara to discuss how TokenMarket became what it is today.
Security tokens, unlike the traditional utility tokens sold through ICOs, are tied to an external, tradable asset — not a concept or project. Because the tokens are deemed a security, they are subject to federal securities and regulations. If the STO offering doesn’t adhere to the regulations, the company offering the token could be subject to penalties.
“Our big project over the last 12 months has seen us expand from utility tokens to security tokens,” Salovaara said. “When we talk about security tokens, we don’t talk about utility tokens just registered as securities, like many people do in America. We’re talking about real shareholders in a company. This is really like equity crowdfunding 2.0.”
This powerful shift in crowdfunding has expanded the types of companies that consider coin offerings to raise quick funds. While TokenMarket once saw its clientele come from the same fields, Salovaara said the company now serves a wide demographic.
“While all of our first transactions were blockchain companies that issued utility tokens, the expansion into security tokens also expands the types of companies that we’re looking to work with,” Salovaara said. “We’re always looking to work with innovative tech companies that are raising early-stage capital.”
In recent months, these companies have come from the fintech, blockchain, AI, internet of things, robotics, health tech, and gaming sectors. TokenMarket recently signed on its first wave of clients, one of them being a Cryotherapy company that is revolutionizing the HealthTech industry and has elite level athletes using their product.
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