BizShake: How to decentralize the Sharing Economy
Interview with Giuseppe Lo Presti — CEO of BizShake
1. Which problem is BizShake trying to solve?
BizShake is committed to improving community life by creating a fully decentralized P2P sharing ecosystem based on NEO blockchain technology, aiming to allow users to monetize their assets in forms of renting and pawning, while greatly reducing intermediary costs. The essence of a decentralized, innovative business model is realized by the ability to tokenize high-value assets on the Blockchain, the transparency of user profiling through digital identity, as well as security provided by an automated dispute system of which is regulated under peer control.
We believe that the adoption of blockchain technology can fully change P2P sharing by filling the gaps that centralized P2P platforms cannot. Our alpha version of app will be in the next few weeks in order to prove to the potential future customers how BizShake will revolutionize the Sharing Economy.
2. What is your biggest challenge launching a Security Token?
Launching a Security Token is something relatively new in the industry. One of the biggest challenge is letting the crypto-lovers understand the differences and advantages and, on the other hand, try to approach more traditional investors that still consider crypto like a gambling activity. The Security Token should be the right vehicle for traditional stock investors to enter in the crypto world, but still their knowledge is far from being ideal.
3. Why did you choose doing a STO as a means to raise funds?
We believe that a Security Token represents one of the most interesting changes in the investment world. It will allow retail investors to access the deals that were usually reserved to the VC funds and other professional investors and, contrary to the Utility Tokens, give investors rights (i.e. voting, dividends, ownership) to the investors
4. What are my rights and risks as an owner of your token? Are they different from traditional ownership rights/risks?
The risks related to the investment in a Security Token are very much alike to the ones related to a traditional IPO. Of course each company has its own peculiarities, but again the Security Token “helps” the investors compared to the Utility Token. In fact, the Security Token issuers are obliged by the regulators (in different forms depending on the issuing country and exemption) to publish a risk factors document that can, and should, be read by all investors.
5. Who is eligible to purchase your tokens?
We are working with our security attorney to make the investor base as broad as possible; for this reason, and being incorporated in the US, we are applying for the Reg A+ exemption. This will allow us to target everybody, accredited and non-accredited investors, in all the countries that have not officially banned the investment in tokens (i.e. China)
6. When will I be able to sell / trade your tokens? On which exchanges?
As of today there are no regulated exchanges that are authorized to trade Security Tokens. This will change very soon; there are already many projects and companies that are working hard to make Security Token exchanges a reality. I believe that by the time that our STO will be finished we will be able to sign the necessary agreements with the exchange in order to have our token traded as soon as possible.
7. What was the biggest learning you made during the last year?
The STO is a completely different story from the ICO, especially in legal terms. There are a lot of difficult and time-consuming activities that have to be carried on with the security attorneys also because the matter is new to them as well. This, of course, subtract precious resources, in terms of time and money, to other activities. I would say that the planning of an STO is my biggest lesson learned and what you read on the Internet about how to plan an ICO is very far from what we, and other STOs projects are doing.
8. What would you recommend others, who are planning to do an STO?
Plan it in advance. An STO requires big amount of working hours and money that Utility Token Offerings don’t. Take your time and do the things right, otherwise you’ll face future problems that are better to avoid.
9. Where do you see the Security Token Ecosystem in 5 years?
I think the Security Token Offering will soon become the most efficient way for any company to go public. This means that, in my opinion, all the current world stock exchanges will be substituted by Security Token exchanges and the Security Token will become the market standard to trade stocks of any company.
10. Who is your favorite super or real-life hero?
My personal hero is Sir Winston Churchill; even in very difficult circumstances he was able to think clear-minded, take tough decisions and take the responsibilities of those hard choices.
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Note: This interview was conducted on 27.09.2018