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Neluns: Complete STO Review


Neluns is a unique financial ecosystem consisting of three key agents — an exchange, a bank, and an insurance company. This three-part package or the financial ecosystem as the company calls itself aims to create a more conducive environment for the adoption and use of cryptocurrencies. Neluns is attempting to capture the market comprising of traditional investors and businesses who are still reluctant to invest in crypto. 


These investors have so far shied from the market which is plagued with the lack of regulations, the absence of established traditional players and overall a lack of deep understanding of the market trends. 


Neluns claims their ecosystem will help traditional investors overcome these entry barriers, reduce the risk involved and also mitigate some the major problems currently investors bump into. Nick Thielman, the CEO of Neluns has experience working with bulge bracket firms such as Goldman Sachs, Citi and JPMorgan Chase.


Capital and participation by key global players


The Manhattan Blockchain fund, in June 2018, invested $1.5 million into Neluns.  As an anchor investor, the Manhattan Blockchain fund is also actively involved in the development of Neluns Later in 2018, Neluns was able to raise $136 million through the sale of their 160 million NLS tokens, according to InWara, Leader in ICO, STO, Blockchain Co. and Crypto Data.

Interestingly the soft-cap set by Neluns was just $10 million. The company plans to release cards in partnership with Accenture, Visa, Mastercard and American Express.


Unique trend of established and cryptos coming together


Neluns claims to be trying to bridge the gap between traditional investors and the new-age digital currency market. Investors are accustomed to markets with well-thought-out regulations and framework, this is far cry from the current ICO and crypto space which have been plagued with various fraudulent activities.


One of the first successful STOs


Neluns was one of the first players to successfully conduct a Securitized Token Offering and is licensed by the SEC (U.S. Securities and Exchange Commission) and by the CFTC (U.S Commodity Futures Trading Commission). Neluns has securitized its profits and thus dividends for its STO, and will provide its token holders a 50% dividends based on the Neluns profits. Dividends will be distributed quarterly.


Security Token Offerings-STOs are similar to an ICO except that investors are granted partial ownership of the company’s tangible assets like stocks or bonds. STOs are also registered with the SEC, thus providing some regulatory backing for the project. Unlike in an ICO, management teams are often lavishly spending the funds raised, in an STO the management is answerable to investors by law.


Interestingly, another STO in the fintech space operating out of the USA was tZero. tZero is a cryptocurrency exchange and has collected $134 million in its STO. The frequency and size of payment of dividends are not available in the open access. Behind the project is a major online retailer Saum Noursalehi, the CEO of tZero has 16 years of experience of which 13 years were with Overstock. He joined in 2005 as a software developer and rose to the member of the board in 2018. He has been serving as CEO of tZero since May-2018.


InWara- STOs by region — USA leads


According to data compiled by InWara, US leads STO offerings followed by Switzerland, UK and Singapore. The number of STOs in the US stood at 91 of which only 8 have failed to raise adequate capital (where reported).


Number of STOs by region

number of STOs by country
Source: InWara's ICO+STO database

Amongst the 91 STOs in the USA, Financial services was leading will allied sectors such as Trading and Investments also in the significant top. Real estate STOs did not surprisingly come second.


STOs according to industry: Country-USA


Other ecosystems — MOBI


An interesting development last year was the formation of MOBI-Mobility Open Blockchain Initiative, a consortium of automobile behemoths like BMW, Ford, General Motors and Renault along with car-parts manufacturers like Bosch and ZF. Mobi aims to make mobility more affordable,efficient and safer by accelerating the adoption of blockchain and distributed ledger technology in the industry. Mobi has ambitious aims of creating common standards and APIs to enable payments and data-sharing between cars.



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