Indiegogo has officially transitioned to STOs, with a security token already listed on the Indiegogo platform. While the crowdfunding pioneer has raised funds for ICOs in the past, they have now initiated their first venture in the realm of securities tokens.
Crowdfunding trailblazer Indiegogo has extensive experience in raising funds. Throughout the past 10 years they’ve helped various companies in over 232 countries raise more than $1 Billion to date.
A Hesitant Start
In December of 2017, they extended their operations to include the acquisition of capital for Initial Coin Offerings (ICOs) and Token Generation Events (TGEs). Their first client was the Fan-Controlled Football League (FCFL), who reached their target of $5 Million without any issue. Following such success, Indiegogo decided to pause such operations. Their official statement said the following:
[su_quote]After many, many hours spent with our legal counsel and advisors we decided that the best course of action was to delay our FAN Token Generation Event (TGE) until the launch of a fully completed FCFL platform with which the FAN Tokens can interact with utility function.[/su_quote]
However, it appears as though their time-off was well spent. They currently have a live offering (as of September 2018) for a security token, called the Aspen Coin, which is backed by common shares in a single asset real estate investment trust which owns the St. Regis Aspen Resort, a luxury asset.
The St. Regis Aspen Resort
The St. Regis Aspen Resort in Aspen, Colorado, USA.
The luxury resort is booked year-round, with numerous ski attractions in the winter, and the beauty of the Rocky Mountains in the summer. The property contains 179 rooms, 25 luxury suites, and a 15,000 square foot luxury spa.
Slava Rubin, a co-founder of Indiegogo, summarized the historic event by saying,
[su_quote]We have always strived to foster innovation and provide our users access to some of the most novel and interesting products and ideas from around the world. With the blockchain revolution fully underway, we are excited about the world-changing impact and potential of security tokens. Our goal is to provide an access point to our growing network of millions of customers and the opportunity to own a fragmented interest in the St. Regis Aspen Resort.[/su_quote]
The Aspen Coin is a standard ERC-20 token, which can be purchased with BTC, ETH, or even USD. However, since it is classified as a security token, it is subject to strict regulations when compared to typical utility tokens or digital currency coins.
The Strong Future of STOs
Despite the added regulations, it is clear that they feature no intimidation to the individuals handling this STO. Stephane de Baets, the president of the asset management firm which owns the St. Regis resort, said the following,
[su_quote]Security token offerings are the investment tool of the future, a mechanism designed to store wealth by utilizing income-producing digital assets. By allowing access to investing in traditional assets like real estate, we are creating a new opportunity for investors to explore an ownership stake in something previously only accessible to private investors and high net worth individuals. Indiegogo is a well known and trusted name in alternative funding and cryptocurrency, making them an incredible partner for us to leverage their influence, experience and global audience.[/su_quote]
Will Indiegogo’s time off from ICOs prove beneficial with their new STO? What does such a transition say about the future of STOs? We want to know what you think below.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.