Ambrosus has partnered with SHIPNEXT to allow for the first alt-coin to be accepted in a Security Token Offering (STO). Since STOs are required to abide by stringent securities laws, they have historically been limited to funding via BTC, ETH, or the world’s leading fiat currencies. The new deal therefore highlights the emerging trend of an industry-wide transition to security tokens.
Ambrosus to be Incorporated with SHIPNEXT’s Security Token Offering Explained
The initial round of SHIPNEXT’s STO is officially underway. They’ve partnered with Ambrosus to allow investors to participate in the offering with Ambrosus’ native token ‘Amber’.
According to Ambrosus CEO Angel Versetti, the deal marks an ‘industry first’ scenario where an alt-coin is accepted in a securities offering. Other accepted currencies are limited to BTC, ETH, USD, and the EUR.
Singapore-based SHIPNEXT is striving to create a digital platform which integrates blockchain technology with supply chain transparency. The current stage of their offering will be available to ‘invited contributors’ for a total of 90 days, with a minimum $1,000 investment.
SHIPNEXT CEO Alexander Varvarenko provided the following comments.
“SHIPNEXT has taken the strategy of building a global supply chain ecosystem, through a decentralized transportation network. Accepting AMB during the SHIPNEXT STO is a clear first step in the right direction, and especially beneficial for improving traction of the SHIPNEXT platform.”
How STOs are Quickly Replacing the ICO
Typically, STOs differ from the traditional Initial Coin Offering (ICO) in two primary ways: STOs openly abide by the applicable securities laws and, in the case of equity, investors are promised a portion of the company’s future profits in the form of dividends.
That’s exactly what SHIPNEXT token holders will receive. Initially, 20% of the gross revenue from transaction fees on the SHIPNEXT platform will be distributed to token holders. Once the monthly revenue rate reaches $1 million, the revenue share percentage will gradually decrease as outlined in the company’s whitepaper.
Besides equity, security tokens can represent many other real-world assets. They can include ownership in luxury property, REITs, investment funds, and even fine art. With increased regulatory enforcement in the cryptocurrency sphere, many companies are ditching the ICO and turning to STOs as a viable means to raise capital.
With alt-coins now entering the STO scene, it seems as though the entire cryptocurrency industry is shifting towards security tokens.
What do you think about SHIPNEXT accepting Amber in their offering? Will additional alt-coins form similar partnerships in the future? Let us know what you think in the comments below.
Image courtesy of Ambrosus and SHIPNEXT.