Bitbond

launch Security Token Offering

Ray shinata
3 min readJun 22, 2019

nowadays, the finance industry is considered the most used platform for blockchain technology. The Bitbond finance platform has emerged as one of the blockchain stellar network types and is valuable because it enables the digital economy in the future with the help of BB1 security tokens technology
Regarding our developers we have successfully implemented a series of innovative improvements in blockchian stellar networks. In this article, we will explore the Bitbond investment platform components and the first loans in Germany to present their unique features on the Stellar Blockchain platform and the real world accounts where they are implemented.

For security tokens, most are likely to think of shares or share certificates represented via tokens. That this is not the case has been proved this week by Bitbond , who have remained faithful to their name and will issue a bond. After all, the term security, ie securities, encompasses much more than just the asset class equities. Bitbond wants to collect up to 100 million euros through token bonds. Why not? The interest rates are low at the moment and investors are desperately looking for fixed-income securities with predictable returns.

For companies that want to issue a bond, speak the currently relatively low interest rates and the advantage of not having to give shares in the company. Investors, on the other hand, are looking for bonds whose interest rate, in relation to a reasonable default risk, yields a higher interest rate than, for example, bonds from Volkswagen or even the German government.

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Accordingly, the Bitbond STO not only has the important signal effect that it is possible to implement an STO in Germany, but also that bonds can be a very attractive alternative form of financing to stocks. The asset class "Bonds", which is sometimes declared dead, can benefit from improved conditions due to the token economy just like the equities asset class.

BaFin is known worldwide for being very strict or having very high demands on companies that want to operate in the financial services business. A stamp from BaFin is worth at least as much as a Made-in-Germany imprint on German drills. This quality feature will therefore impress investors around the world. Especially those investors who feel cheated by the wild ICO hype and the exit scams get the good feeling to invest in a fully regulated capital measure with corresponding investor protection at an STO approved by the BaFin.

That's what matters for bond and stock tokens now

With due attention, investors around the world will be watching how successful the current STOs will be. How much will z. B. can borrow bitbond through bonds? Are interest payments credited without complications? These and other questions will decide on the financial market adaptation of security tokens. In addition to the unanswered question of where the first regulated security token exchanges will be, it will be necessary to see what kind of companies will opt for an STO.

Initially it can be assumed that STOs will appeal to high-risk companies in particular. However, this must be clearly differentiated from ICOs. STOs are a pure corporate action that is open to companies that have nothing to do with the blockchain at all. This is in contrast to ICOs, where utility tokens must meet a blockchain use case. As a result, the odds are much better that the substance of companies, and especially their business models, is better than ICOs.

Accordingly, not only start-ups, but also mid-sized companies with solid balance sheets can contribute to the emergence of a sophisticated security token segment for equities and bonds. Gamblers do not need to be afraid though. There will be enough high-risk projects that will circulate in the penny-stock or high-yield bond segment.

More information about the project You can find on the official resources, links will leave below. Good luck investing, consider the risks!

Official resources
STO - https://www.bitbondsto.com/?a=ANTGFW
White paper - https://www.bitbondsto.com/files/bitbond-sto-prospectus.pdf
Telegram - https://t.me/BitbondSTOen
Twitter - https://twitter.com/Bitbond

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Ray shinata

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