MOBU
Crypto News

MOBU STO – A Security Token Issuance Platform With a Twist

If you have been in the cryptocurrency space for the past year I’m sure you have heard of ICOs. These are investment vehicles utilizing crypto that pulled in hundreds of millions of dollars worth of funding for various projects. The biggest problem with ICOs was the unregulated nature of the offerings which subsequently resulted in many scams and failures. As a result, a new trend is emerging called STOs or Security Token Offerings.

Just like with ICOs, STOs allow interested investors to contribute to a project. However, the biggest difference is that STOs are highly regulated and the platforms that issue those securities must adhere to rigorous rules set in place. Furthermore, not everyone can participate in an STO, usually the person must be an accredited investor and also must pass KYC verification prior to contributing funds.

As with ICOs there are various issuance platforms for STOs, some of the more notable ones include Polymath, TokenIQ, Securitize, Swarm and much more. This is where MOBU comes in. MOBU is a security token issuance platform that will allow companies looking to run an STO to be able to execute it up to regulatory standards. The best thing about MOBU is that they plug into the already successful ERC20 token standard. According to their whitepaper:

“The MOBU abstract smart contract will contain the code that is required by the STOs to conform to the MOBU ERC20 platform and the MOB20 standard protocol to adapt to the ideas and requirements of MOBU.”

The twist when it comes to MOBU is that the security token issuance platform is running an STO of their own – STOception! By contributing to their STO, one is essentially betting on the platform’s success. When investing in the STO, one will get MOBU tokens in return. According to the whitepaper, the token’s revenue will come from various fees the platform will charge for listing STOs and transactions on the platform. Furthermore, there are already five confirmed issuers that have signed up on MOBU.

One does have to be an accredited investor in order to participate and one also has to pass KYC verification as with most other STOs. The minimum investment requirement is 1 ETH which is quite low compared to some other STOs. The STO started on February 1st, 2019 and will commence until April 30th 2019.

Originally Appeared on STOCryptoList

Leave a Comment

Your email address will not be published. Required fields are marked *

*