On October 15th 2019, the very first Security Token Offering on WeOwn’s platform went live. The tokenized offering features equity in Project Crowd, a recruitment platform which uses blockchain technology and AI to connect freelancers, recruiters, and employers.
Project Crowd’s Security Token Offering on WeOwn Explained
Project Crowd is Artificial Intelligence-powered recruitment platform with “functionality based on blockchain technology”.
The Liechtenstein-based company has now launched a Security Token Offering (STO) with a 200 Swiss Franc (approximately $201 USD) minimum investment.
The STO is currently listed on WeOwn. Sascha Ragtschaa, WeOwn CEO and co-founder, says the STO is quickly becoming a better alternative to the resource intensive Initial Public Offering (IPO).
According to Ragtschaa,
“Only 25 companies have floated on the London Stock Exchange in 2019, and with high-profile failures like Uber, Lyft, and WeWork, it’s no wonder companies are turning to private fundraising models instead. Platforms like WeOwn democratize the investment process, giving everyday people an affordable opportunity to back dynamic, rapidly scaling brands like Project Crowd through an intuitive, user-friendly process. There’s none of the complexity, confusion and red tape associated with traditional stock exchanges.”
The offering features 1 million shares for a 7.25% equity stake, where each share costs 1 Swiss Franc. Shareholders will be entitled to dividends, but no voting rights are included.
Project Crowd CEO and co-founder Kathrin Hauck said her company chose WeOwn because of a shared vision concerning the integration of blockchain technology and the capital markets industry:
“The Prowd platform we are developing leverages both blockchain and AI to drive a fundamental industry-wide shift, much like the way WeOwn has approached traditional equity markets. We are genuinely pleased to join WeOwn as we open our public sale.”
With Project Crowd conducting the very first STO on WeOwn’s platform, Ragtschaa tweeted,
“This is a historical moment for not just us, but the entire #STO industry. A real and life public offer in Europe, accessible to everyone and the start of an entire new approach to fund raising for private SME’s. Small steps, but a huge one for the private market.”
In addition to equity, security tokens have seen successful implementation in assets to include real estate, investment funds, and fine art.
What do you think about Project Crowd launching an STO on WeOwn? Will the STO eventually replace the IPO? Let us know what you think in the comments section below.
Image courtesy of Crowd Machine.