Harbor Launches V2.0 and Neufund Will Start Paying Out Fees

Each week we share the latest news in the Security Token industry. This is newsletter #22 — subscribe here to get it in your inbox every Thursday.


tZero launched two weeks ago, with trading limited to tZero’s own token. Since then, price of the token has fallen from $8 to around $3, with very little liquidity.

That is not to say that the token won’t do better in the future, nor that the company won’t be pivotal for the security token space.

But still, we hope that tokens like these can demonstrate to others the added benefits of tokenized securities — and that liquidity will come soon.

QUOTE

Often when we say “security token”, we mean “tokenized security.” Both are compelling concepts, but they are not the same thing.

In the first instance, […] it’s a new technology representation (a token) that shares some qualities with traditional securities. In the second, […] the phrase refers to a traditional asset (a security) wrapped in a new technology.

Noelle Acheson from CoinDesk

NEWS

🚢 Harbor launched the second version of its platform, to allow startups to tokenize their company’s private equity, and restrict liquidity among trusted parties.

🥨 Investors who participated in the €3.38 million STO of German token issuance platform Neufund’s parent company Fifth Force, can now claim their ‘FTH’ equity tokens.

💸 From the same article, the platform’s first fee pay-out will soon take place; on 12 February, over €100k will be distributed to all NEU token holders.

💱 The Swiss Stock Exchange operator SIX is aiming to move trading onto the blockchain, with first tests planned for later this year. The full interview with SIX’s CEO is available here (in German).

🔒 Canadian crypto exchange QuadrigaCX lost access to around $137 million of its customers’ funds as the founder, and only person with access to the company’s cold wallet, suddenly died.

LONGER READS

🎁 Another great article by Bloomberg’s Matt Levine, with a counter-argument to the fractionalization benefit of tokenized securities: “before the invention of tokenization there was already a way to slice it into bits and let people trade the bits”.

⛓️ From off-chain VS on-chain to decentralization VS compliance — Four frictions that will guide the future of tokenized securities.

NEW STOs

🗽 Cityblock Capital’s NYCQ fund is conducting its token sale. The fund invests in early-stage blockchain capital market infrastructure companies, and its tokens can now be bought and sold on Sharespost.

🇧🇲 Having raised $3 million from Bitmain in an earlier round, ad fraud-free digital advertising marketplace tribeOS is launching a Bermuda-based STO. Press release here. Terms of the deal are not yet made public.

POSTSCRIPT

Over the last weeks, we’ve spoken to a number of VC funds here in Europe.

Interestingly, the majority sees the potential benefit of tokenization — but find that the startups they invest in are not interested in tokenizing their equity.

In contrast, many of the tokenized security issuers we know have trouble with acquiring investment from VCs — finding that they are not interested in investing in tokenized equity.

So what can we learn from this? For one thing, we will need to educate both sides of the market.

See you next week! 👋

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SecurityToken.it is created by Infloat. At Infloat, we focus on the massive potential that tokenized securities will bring.