MOBU is a next generation user-friendly smart contract and all-in-one platform for real businesses (security tokens).
Launching an ICO that offers a security token can be extremely challenging due to the magnitude of technical, legal and regulatory requirements and procedures. As an organised ICO platform MOBU offers a complete blockchain solution to expand the horizons and solve the problems of cryptocurrency developers who are hesitant and unsure about all the procedures required when offering security tokens to the cryptocurrency community.
How It Works?
Real businesses wishing to raise capital by issuing security tokens will build their ICOs on the MOBU platform. MOBU creates an abstract smart contract from which all security token ICOs will be extended. The MOBU abstract smart contract will contain the code that is required by the security token ICOs to conform to the MOBU ERC20 platform and the MOB20 standard to adapt to the ideas and requirements of MOBU.
Why Security Tokens?
As the cryptocurrency market evolves, the global adoption of ICO fundraising structures has led to an explosion of new capital formation that has outpaced both the seed and venture capital investment markets. However, approximately 98% of these ICOs launched utility tokens. The securities market is a multi-trillion-dollar arena which remains virtually untouched in the blockchain space. We know that a security token start-up can be a legal, technical and regulatory nightmare. MOBU is a decentralised organised all-in-one platform to launch validated security tokens. Security tokens improve traditional financial products in a number of ways:
Fees are lower
The total costs of launching successful ICOs are a lot more cost effective in raising funds than IPOs. Most IPO costs originate from payments owed to middlemen like bank institutions. Security Tokens remove the need for most bankers which lower fees while smart contracts may decrease the reliance on lawyers in future. Smart contracts decrease the complexity, costs and paperwork with managing securities (collecting signatures, wiring of funds, mailing of distribution checks, etc.).
By removing the middlemen from investment transactions issuers are able to conclude quicker timelines to successfully offer their security. Instant and prompt trade settlement on the secondary market for Security Tokens will become an attractive advantage for issuers and investors as well.
Exposure to the free market
It is challenging for investors in Asia to invest in private US companies or real estate. Therefore, most investment transactions today lack exposure to a global investor base. With Security Tokens, asset owners simply market their deals to anyone with an internet connection. This free market exposure will lead to a notable reform in asset valuations since any asset that is not exposed to a free market is inaccurately priced.
Investor base is larger
ICOs now raise more capital than IPOs. The potential investor base is drastically increased when asset owners can present deals to anyone with an internet connection. It is obvious that asset owners prefer to show his/her investment opportunity to every potential investor in the world and not be restricted to only US accredited investors and institutions. Competition is healthy and beneficial for financial markets on long-term.
Service functions are automated
With Security Tokens, issuers will start to use smart contracts to automate the service provider function through software. In most transactions lawyers are less middlemen and more service providers. This does not necessarily indicate that lawyers will cease to exist, but rather that their function will be more advisory based.
Decreased manipulation by financial institutions
The likelihood for corruption and manipulation by financial institutions is decreased if those institutions are removed from the investment transaction process.