Mid-week block of state announced, one of the world’s first Equity Token Offerings (ETO) on the Newfoundland-platform – BTC-ECHO reported. Unlike most ICOs ETOs should enable investors to acquire real shares in the company in the Form of tokens. We spoke with Paul Claudius, co-founder and managing Director of block state, in order to learn why block state for a ETO has decided to and how to block state products to develop, the beat the bridge between the Blockchain and the traditional financial world.
Block state is one of the first companies out there on Newfoundland an Equity Token – what has led you to this form of financing?
We have not in the block state the claim, to think of innovation only in the digital parallel world, but also the area of Legal Compliance. For this claim to ICO in Germany is not suitable, since the regulatory provisions are still much too blurry. Apart from the legal security of a Utility power tokens only in the case of projects, where this is a necessary part of the product. In the ETO, the actual investor participation is in the foreground, comparable to an Angel and VC Investment or the purchase of a share. Compared with a traditional Public Listing, in which the hurdles are extremely high and market access is difficult, the Equity in the Token Offering about Newfoundland a Public Listing much easier. Equity Tokens are thus a perfect example of a digitized financial instrument and offer a contrast to Angel and VC Investments, the ability to sell his shares on the market.
The vast majority of the Blockchain Startups put out so far on ICOs – What are the advantages of it for your investors, that block state set to an ETO instead of an ICO?
For investors, a ETO offers, in addition to the legal certainty a lot of advantages, because, unlike in the case of ICOs investors to participate with us through dividends on the company’s success and, since they hold real shares, full voting and participation rights.
On your Website is to read, that block state wants to build bridges between the traditional financial sector, and the crypto-Economy – What, exactly, are we to picture this?
We want to bring our products to the efficiencies of the Blockchain technology, with the Compliance requirements of the traditional financial world together and so build a bridge. Our Mission is, banks should be abolished and replaced by a regulatory evasive solution. We must not forget that The traditional financial world also has a lot of advantages. If I lose my password for my Online Banking Account, then I have a partner that helps me to recover. Middle men are not, in our view, therefore, per se, is superfluous, especially if they ensure a certain degree of security. At the same time, my experience from the Banking, in that the structures are often still from the eighties.
Your plans to make Investments in crypto-currencies for institutional investors – How exactly would that work?
Yet it is for institutional investors for regulatory reasons, hardly be possible to participate in the crypto currency market – we want to change. We will bring in this year an Index product on the market, the 15 largest crypto maps currencies. This Index product is not only for private investors but also for institutional investors available, as it meets their regulatory requirements.
How do you solve the regulatory problems with which many companies are working on crypto funds that currently have to fight?
One of the biggest problems in crypto-Fund a clean auditable Pricing. For Bitcoin and Ethereum, it is through the Futures market, meanwhile, consolidated prices. For other crypto currencies, in particular, beyond the Top 10, however, this is not the case. Here we come in and ensure a transparent Pricing. Another Problem lies in the structure of the products: up to now, these products are not primarily for high net worth private clients, because they institutional investors go to the regulator with the requirements of the institution compliant. Our products are comply with the UCITS and PRIIP criteria, and are thus on a stock tradable, and also for institutional investors to diversify suitable.