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Neufund: World’s first Equity Token Offering?

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All About Neufund Coin

 

Neufund has often been described as the “stock exchange without the operator in the back”. Neufund is an innovative German enterprise that recently made headlines, when it launched an Equity Token Offering-ETO, which the company claims to be the world’s first.

 

Neufund aims to bring a new chapter in fundraising history, one with more safety, accessibility and transparency!

 

Zoe Adamocicz, CEO of Neufund was quoted saying “For the last two years, Neufund has worked across technology, regulation, and finance to bring real-world equity on-chain. Today, with the start of the first equity token offering on Neufund they enter a new chapter of fundraising, one that is safe, much more accessible, and fully transparent”.

 

She clarified that her companies work with companies and providers who want to tokenize and also provide a platform for securities offerings or a “IPO on the blockchain”.

 

Neufund’s ambitious plans to create a security token offering that is compliant with regulatory bodies, that also manages to keep public authorities happy, is no small feat. Neufund has published a pipeline of issuers expected to move forward with an ETO in the near future.

 

Neufund is not the first enterprise with these ambitious goals. American Blockchain company tZERO’s platform is expected to launch this week. tZERO shares the same vision with Neufund.

To know why tZERO’s platform launch is much anticipated check out InWara’s article on tZERO.

Despite this, Neufund is one of the most closely monitored platforms by the crypto-community as it’s one of the first issuance platforms to complete a sale in Europe.

 

According to InWara’s private funding database Neufund was able to raise almost $15 million in 2017, from VC’s such as Michael Jackson, Philipp Freise, Minh Ha Duong, Atlantic Labs to name a few. According to the company, being able to reach the soft cap value itself is a success for the first legally-binding public offering of securities on the Blockchain.

 

Neufund tokens: Investment or securities?

 

Neufund could may as well sometime hit a hurdle with the regulatory authorities. Germany’s Federal Financial Supervisory Authority-Bafin has not been monitoring the Blockchain platform Neufund right now as it falls beyond their purview. “Companies that aren’t included in our database have no permission for example to do banking business or offer financial services,” Bafin said in a statement mid last year.

 

This predicament presents a puzzling problem, Neufund wants their platform to be considered as an investment but there’s a chance it will be categorized as a security. This means, in Germany token issuance would be considered under the same regulatory framework as stock issuance, making the process capital intensive.

 

STOs are picking up where the ICOs have tapered

 

As government regulations worldwide starting restricting ICO sales, crypto enthusiasts and entrepreneurs were forced to look for a viable replacement that can thrive in this hostile environment, and STOs seems to be the solution that is being adopted. Last year saw ICO numbers taper while STO observed a massive surge.

 

Number of STOs by region

 

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.

Number of STOs by country till date
Source: InWara’s ICO+STO database

 

Neufund offers a global outreach, through decentralized ownership

 

Last year saw dozens of startups coming forward, with claims of being able to alleviate the Blockchain and crypto industry of it’s aches. So what makes Neufund stand-out amongst the crowd?

 

Neufund’s skunkwork tokenization and issuance platform is decentralized and owned by investors, who are ultimately their users, meaning NEU token holders will potentially receive a share in all revenues generated by Neufund.

 

Neufund claims its offerings provide a companies a global outreach as an investor doesn’t have to be accredited to participate in ETOs. “We already have more than 3000 investors from more than 90 countries registered on our Platform”, Zoe was quoted saying in a report published by Forbes. The company also claims investors will be provided with a diverse portfolio of potential investments from across the world.

You might also like this article: Xcrypt to create a new market for Security Tokens

 

Neufund partnered with Malta stock exchange

 

Blockchain Island of Malta welcomes Neufund

 

Malta an archipelago belonging to European Union, popularly dubbed as the ‘Blockchain island’, for its progressive regulatory framework that is conducive for Blockchain entreprises. Last year Neufund announced its partnership with the Malta Stock exchange’s skunkworks-MSX, to help create and issue security tokens. Binance, the world’s largest crypto exchange by volume, has agreed to carry the newly created MSX tokens on it’s exchange.

 

Joseph Portelli, chairman of the Malta Stock Exchange, believes this partnership will lead to the creation of a crypto exchange that is fully integrated with established financial systems. Joseph was quoted saying “We are delighted to welcome Neufund as our key partner in building a Blockchain-based exchange that is fully integrated with established financial markets. With the upcoming pilot project we become a worldwide pioneer in digital finance.”

 

Security token offerings (STOs) according to industry in the USA

Security token offerings (STOs) according to industry in the USA
Source: InWara’s ICO+STO database

 

According to data compiled by InWara, of the 91 STOs in the USA, Financial Services was leading will allied sectors such Trading and Investments also in the significant top. Real Estate STOs not surprisingly came second.

 

“The Security Token Ecosystem continues to grow significantly”, said Sushrut Gaikwad, Director at InWara, in HCX’s Crypto Summit (UK) last week. “USA seems to be the early leader because of the mature processes in place for filings with SEC. Clear filings allow for easy classification of securities for firms like InWara to bring value as our analysts can course through these documents faster and bring out actionable insights.”

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