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As discussed in some of my previous articles, it is clear that the security token framework presents numerous immediate and long term opportunities. The task of unlocking this value is by no means trivial — many exceptionally talented companies and individuals are working on it alongside some of the top law firms in the world. It is these type of companies that need to be recognised and supported, since their progress will benefit the society as a whole.

As was demonstrated by the ICO bubble, signalling project quality is by no means simple. At first, companies attempted to select a credible team — relatively simple to replicate by bad actors. Afterwards, the most prominent advisors — that too proved to be simple to fake. Being featured on top media outlets? Fraudulent companies figured out ways of doing that too. A large community? Simple — buy telegram users and mimic traction. One of the final uncompromised ways of signalling project quality — actually having a quality project. …


How exactly can distributed ledger tech enable liquidity for previously illiquid financial instruments?

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Instead of defining security tokens by what they are, how about defining them by what they do? Pretty simple — enable new, tradable asset classes, at reduced costs and complexity.

The goal of this article is to try and keep things simple — to continue examining security tokens as a framework for representing ownership of assets on distributed ledgers. The two main properties arising from this framework are the possibility of programmable securities (new asset types) and the ease of ownership representation and transfer (liquidity potential).

The lack of established vocabulary in the space often makes things a bit tricky — readability is partially sacrificed for precision. Any comments and criticism are highly appreciated, as it will help drive clarity and facilitate the much needed discourse. …


There was the time to dream. Now it's the time to build.

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Given the market developments in the “cryptosphere” of 2017–2018, it shouldn’t come as a surprise that there is an unreasonable amount of noise and preaching. In the weird and unregulated market conditions of the early crypto days, companies were forced to compete in the realm of marketing more so than in the realm of merit. This could be viewed as a double-edged sword in a sense, where on one hand, public awareness of blockchain was raised. On the other — it served as a prime illustration of bad actors attracted to highly lucrative and unregulated markets. As a result of the latter, the average market participant was drowned in unrealistic expectations and outrageous marketing slogans. …


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One of the more interesting market bubbles took place in front of our eyes in 2018. It left behind a fair amount of confusion.

Chances are that by now you’ve probably encountered things like “security tokens”, “tokenized assets”, “digital securities”, “tokenized securities” or similar. Most often these terms are accompanied by spectacular preachings of disintermediation, disruption and revolution, without going into details about the “how exactly”. The kind of marketing first approach has carried over from the mass madness of the Initial Coin Offering bubble, and continues to muddy the waters about the use of Distributed Ledger Technologies (DLT) in improving the efficiency of securities markets, asset tokenization and transfer. The goal of this article is to critically examine some of the boldest claims as to what DLT can help achieve. …

About

Karlis Markots

Fascinated by capitalism, financial markets and technology. Will never say no to milk chocolate. Skeptic by day, dreamer by night.

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