Security Token Offerings (STOs) are becoming popular in the blockchain fund raising world, and BitBond is gearing up to launch the first STO in Germany. The STO prospectus is fully compliant with EU prospectus laws and has been approved by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) – Germany’s financial watchdog. Issue volume is capped at $100 million and tokens will give holders unique access to a fixed annual coupon of 4% annually.
Launching on the Stellar Network
It’s a sign of the times when a young fledgling blockchain network is chosen to host the first STO from the European economic powerhouse. Typically, STOs are launched either on Tezos or Ethereum, but BitBond has chosen to launch its STO on the Stellar Network. The reason behind its decision to proceed with Stellar has been rather clear. In a statement on its website, BitBond said,
With a processing capacity of over 1,000 transactions per second, transaction costs at a fraction of a cent, a built-in decentralized exchange and a global network of active partners using the platform, Stellar is one of the most efficient blockchains for payment processing and token issuance.
Get Quarterly Profits on Your Investment
BitBond is taking a novel approach to its STO process. Instead of letting market forces determine the value of the token, it will be capping the maximum value of the token at €1 – meaning you’re not going to make a killing by day-trading the token. Instead, BitBond will issue 1% interest on your total investment every quarter – totaling 4% per annum. After 10 years, your tokens will reach maturity and will be bought back at a value of €1 per token – meaning if you join the STO early on, you can bag a juicy little profit at the end of the 10 years.
Crypto Loans Becoming Popular
BitBond has been offering Bitcoin loans since spring 2018, and it has rapidly become a leader in the Bitcoin lending space. Last week, BlockFi – another crypto loan firm – began listing loans in XRP – the token of the Ripple network. These moves from two of the biggest crypto loan firms in the industry highlight the fact that the demand for these products is growing, and we could soon see crypto loans become more popular than traditional bank loans.
BitBond is making huge waves in the STO space and it could help to usher in a new era of STOs. The STO is available for everyone except American and Canadian residents, so fill your boots with the hottest STO on the market and reap those quarterly rewards.