Article written by Joel Bonga
The unprecedented success of numerous ICOs during the course of 2017, altogether raising approximately $ 5.6 billion USD in crowdfunded capital (according to TokenData and Fabric Ventures research). Surprisingly amidst the bearishness of 2018’s cryptocurrency market, the speculative investment wave seems to have gained momentum, with $6.3 billion USD being raised in the first quarter alone.
Considering the sizeable figures being moved around and a lack of clearly defined regulations in this relatively new sector, it is both unfortunate and natural that maleficent characters would soon see it as an orchard that is ripe for picking. This is an issue that ICOs dealing with Utility Tokens and ICOs dealing with Tokenized Securities face altogether. The latter, however, has its’ own set of problems.
Hurdles faced by the Tokenized Securities market.
- As mentioned before, the looseness of legal framework around the ICO market is one problem that puts potential investors at risk and plays a huge role in the slowing of progress as regulators try to manage the problem.
- Unequal investment opportunities for retail, institutional and so-called whale investors, e.g should the whales decide to dump assets, then institutional and retail investors run the risk of huge losses.
- For Tokenized Securities in particular, there is a real lack of post ICO liquidity.
- A lack of infrastructure/liquidity for ICOs in converting Crypto assets into traditional fiat currency.
The proposed solution
Before the ICO market is taken seriously as a legitimate vehicle for crowdsourced funding, the aforementioned creases need to be ironed out. DESICO is a new company with an ambitious plan to satisfy the needs of the Tokenized Securities market. The plan is to fill in the aforementioned gaps by building an EU (European Union) compliant platform.
“the first blockchain venture amongst competitors that offers an end-to-end solution to issue and trade Tokenized Securities”.
DESICO “will build an end-to-end infrastructure to issue and trade Tokenized Securities in full compliance with the EU member state law”.
Based in Paris France and Vilnius Lithuania. Both countries being EU member states and the latter having recently become a Eurozone member. In a somewhat surprising result, Lithuania achieved the highest capital raised via ICOs in the first quarter of 2018, following China and the USA. DESICO may be in a good geographical position to solve the issue of compliance.
All the company’s operations will be regulated by the Bank of Lithuania, which is under the supervision of the European Central Bank.
The provision of equal security token-based investment opportunities for each investor, large or small.
The issue of post-ICO liquidity is taken head-on by DESICO’s plan to operate an EU regulated security token exchange. This for the purpose of immediate liquidity provisions for any security tokens issued by DESICO listed businesses.
The DESICO platform will be issued an EU e-money license. The e-money license enables a safe/legal transfer of funds from users to the DESICO platform through an International Bank Account Number (IBAN). This license also helps to offer investors an easy channel through which fiat can be traded for cryptocurrencies and vice-versa. Last but not least, it empowers the company with an ability to legally execute payment transactions and manage payment accounts.
DESICO, though young in the Crypto space has drawn the attention of Vilius Šapoka, Lithuanian Finance Minister who spoke well of the company. Crediting DESICO with fostering Lithuania’s “fintech and blockchain communities by promoting the settlement of global blockchain and fintech businesses in Lithuania.”
The company was also able to secure a top 3 ranking out of 160 ICOs which took part in the ICO Race competition held in Switzerland during June of this year, thus securing themselves $100 000 USD in funding.
The DESICO crowdsale, DESI token, and token holder benefits.
The ICO will run from 2018/11/07 up until 2019/01/15 with one DESI token = $ 0.08 USD payable in Ether.
DESI token will be the transacting token for those looking to invest in any ICO launched via the DESICO platform. Possibly the most noteworthy point is that DESI token holders get “early bird” investors and whale-like benefits, such as discounts and bonuses.
DESICO looks like a “breath of fresh air” for the cryptocurrency market, amidst all the talk of uncertainty and regulations, or rather the lack thereof. Though still in ICO phase, the platform may be very appealing to any startup looking to issue security tokens in a fully compliant manner for any investors looking for a safe security token investment platform and any traders who want to take advantage of the compliant exchange in the trading of tokenized securities.
The company’s Lithuanian origin once again puts it in a good position, as the small country has ambitions of becoming a future fintech powerhouse, having been ranked among the top 20 most business-friendly countries worldwide and letting in 35 new fintech enterprises in 2017. DESICO and security tokens could have a bright future ahead of them.