Tokens have become a popular way for new companies to raise funding. Securrency and SharesPost are working together to make the market for tokens safer, and easier for investors to navigate. SharesPost has been an innovator in marketing equity that would normally be off-the-radar for investors.
John Wu, CEO of SharesPost Digital Assets Group, commented on how successful their business model has been in a written interview with Crypto Disrupt, “SharesPost launched the first online secondary market for private technology company shares in 2009. Since then, SharesPost has connected thousands of buyers and sellers in more than $4 billion worth of transactions in the shares of more than 200 leading technology companies.”
The market for tokens is new, and many larger firms simply don’t have the tools to deal with an emerging asset class that has generated amazing returns. John Wu said this on the expertise that his company is bringing to a popular new kind of asset, “SharesPost has a definite edge in the emerging security token market, as it already has the technology available to enable the secure trading of digital securities and tokenized assets in compliance with U.S. securities law.”
SharesPost and Securrency bring a new level of competence to token trading
While SharesPost wasn’t specifically designed to deal with tokens, Securrency is a purpose built company that makes investing in tokens easier for mainstream investors. Now that institutional investors are looking into tokens, and know-your-customer regulations are becoming more important, a company like Securrency is well placed to grow with an evolving market.
Patrick Campos is the Chief Strategy Officer at Securrency, and he expanded on how his company adds value for investors, “Securrency’s suite of technologies ensures security and compliance throughout this tokenized securities ecosystem. Essentially, when tokens are created for primary issuers using Securrency’s unique Compliance Aware Token™ technology, an internal ‘rules engine’ governs the operation of those tokens in a way that not only ensures that all token-holders are cleared for participation (i.e., they have passed KYC, AML, investor accreditation, wallet scrub, bad crypto, and other necessary checks), but also tells these tokens not to go places they aren’t supposed to go-which means that this compliance is carried over into the secondary market.”
Securrency has attracted talent from outside the world of cryptocurrency as well. Mr. Campos was interested in pointing out that, “It is important to also note that Securrency’s CEO and ‘Coder-in-Chief,’ Dan Doney, was once the Chief Information Officer of the Defense Intelligence Agency, and remains one of the world’s foremost experts on blockchain network security.”
Establishing trust in a new market
When Bitcoin was born, nobody cared about compliance, tax law or many other things that institutional investors look for before they deploy capital. John Wu thinks that SharesPost’s track-record will help his company in attracting investors, “Through SharesPost’s existing Alternative Trading System (ATS), we are able to bring security token issuers and investors into our private marketplace, where they can invest in ICOs and trade in digital securities in compliance with U.S. securities laws, on an established platform they can trust.”
Ultimately SharesPost and Securrency are service providers, and the real winner from expanding safety and oversight in token trading will be the companies that are using a non-dilutive method of raising funds. Venture capital (VC) firms are still doing more deals than ICOs based on total cash raised, but as services like SharesPost’s platform expand, VC could find itself competing on terms that aren’t as attractive as they once were.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.