How can tokenization help create liquidity. CryptoTwins interviewing Dave Hendricks

Dave Hendricks recently spoke with the CryptoTwins in a ValueTokenized interview.

CEO and co-founder of Vertalo, Dave has over 20 years of experience in marketing management and corporate governance and has raised over $80 million for the firms he’s been involved with. Vertalo is a cap table solutions company focused on SEC compliant security token issuance and helping broker dealers to reduce their costs by eliminating spreadsheets and multi-sig wallets.

How to meet other people in the STO space

Dave believes that security tokens offerings are a team sport and thinks that if you’re a security token infrastructure company, like Vertalo, you need to work with other companies doing the same thing. The only place where you can really meet people from these companies, enough people at the same time at least, is at the conferences. At a conference everyone is there to do the same thing and it’s very easy to create relationships and learn from each other.

How to turn a press release into real results

The best way to get results is to use something called, “The Amazon Press Release format or concept.” Whenever a product manager at Amazon wants to introduce a new product they come to the meeting with a press release about the product, as if it has already been built. From there Jeff Bezos, or whoever is in charge, can say, “Okay, that’s a great future now let’s backup from that future and try to make it possible.”

This is an approach that lays the groundwork for an offering by creating the image of a viable future product. It puts the onus onto the partners to make that offering a reality by doing the work.

Whether ERC20 will be the single standard for security tokens

According to Dave the answer is pretty clearly no, at least not for now. He believes it doesn’t make any sense to expect a set standard today while we are still in the early experimental days. Even though Ethereum is the most popular platform at the moment, Stellar, EOS, Hyperledger Fabric and others are all gearing up to compete in this space.

Dave does admit that in the long term a coin may win but it’s still too early to tell which one it’s going to be. If you view it as a platform tournament, where it goes from 8 to 4 to 2 to 1, we are still in the early stages of that and there are still a lot of games to play before the championship.

Why security tokens will be issued on non-permissioned blockchains

It comes down to censorship. The primary issue, when it comes to issuing securities on a blockchain, is who controls the nodes. Can the person who controls them, for instance, decide to not process a confirmation which would enable the transfer of a token? That’s the ultimate question around permissioned versus non-permissioned blockchains and it’s obvious that non-permissioned blockchains have the advantage here.

Another question is speed. Non-permissioned blockchains are superior for non-censorship but permissioned blockchains are always superior for speed. That’s why it’s necessary to ask whether speed matters or not. Realistically, for private equities like security tokens, the truth is that it doesn’t. In fact private equities are really slow and they don’t trade a lot.

Given that, Dave believes that as security tokens become more popular they’re going to be increasingly launched on non-permissioned blockchains. By compensating node owners to process transactions you can prevent censorship and while speed may be sacrificed the lack of a controlling entity is worth the tradeoff.

You can watch the full interview with Dave on YouTube: https://omg.to/vl/yt/dave-hendricks/frmdpb

Or highlights of it on Twitter: https://omg.to/vl/tw/dave-hendricks/frmdpb