The potential of the security tokens is simply incredible- it’s an estimated 10 trillion dollar market.

And while there are many hurdles for the security tokens to be implemented on a wide scale, the regulated markets are basically the only viable future scenario.

Going forward, from business perspective, it will be a market of enablers. Platforms that help to tokenize the companies (securitize.io, polymath.network), market the STOs to investors (crowdfundx.io), regulated exchanges (polymath etc) that enable trading of the security tokens, and investment platforms, that enable investors to participate in the STOs.

But first, what are security tokens?

Security tokens are digital, regulated securities on the blockchain. The key difference is that security tokens are regulated, represent an actual share in the company and are backed by external, tradable assets. Many believe that STOs are the next crypto megatrend. Security Token Offerings (STO) are similar to Initial Coin Offerings (ICO) — a revolutionary way to raise capital for the company.

Investing into ICOs/STOs

There’s still a lot of friction about investing into ICOs, especially for people that aren’t that tech savvy, or just haven’t familiarized themselves with the dynamics and processes of the crypto industry. Sure, the case can be made that it’s for the best — if you haven’t brought yourself up to speed, then you obviously shouldn’t be investing. While it’s undoubtedly true, there are many people that are caught up in their everyday lives, and they just don’t have the capacity to get involved, so the investing opportunities pass them by.

It doesn’t have to be like this, and going forward, from the business perspective, it will be a market of enables and simplifiers.

The project we are introducing this time is our in-house project – we’re developing an investment platform for STOs and ICOs.

The benefits that we’re looking to provide are:

  • Automated subscription model
  • Projects identified and researched by professionals
  • Frictionless way to build a security token portfolio
  • No need to use any e-wallets to store the coins
  • More control compared to an investment into a typical fund

How the platform works?

Investors will be buying STO/ICO contracts that grant them rights to the certain amount of tokens from chosen STOs/ICOs. We won’t be raising and investing money like a fund, but we will be selling investment products.

Each month new Contract is introduced, which facilitates up to 5 different tokens from carefully vetted initial offerings. Our core focus will be on security tokens. Platform users will be buying one contract per month and can liquidate a contract once the tokens are listed on exchanges.

Why our model of investing?

STO/ICO contracts allow investors to diversify their risk, automate the investments, and also have more transparency and control over their investments, compared to, for example, a fund. Plus, the platform won’t be charging any fees at all, nor will there be a need to store the purchased coins.

As a second step, PTF will have a trading platform for contract holders, which allows to trade and purchase more contracts from other users of the platform.

What’s next?

If you are interested in participating in this project — let us know by writing to info@tokenfund.vc. You can also sign up for the waitlist to be up to date with the launch plans! See more at www.tokenfund.vc (word of caution — the whole page will be redesigned in the next couple of months).

We are currently looking for angels and to expand our network. And of course, constructive criticism.