This is my entry for the sponsored writing contest organized by @monajam . You can find the contest here: https://steemit.com/contest/@monajam/205-steem-dollars-writing-contest-mobu
Cryptos have continued to make huge impression all over the world. With Bitcoin taking the lead, a whole lot of them are built on Bitcoin blockchain by the use of its open-source protocol. Today, there are others that are not forked into Bitcoin blockchain, yet they are traded for values.
They exist on different blockchains but are traded on the same crypto markets and are used for the same purposes. Each cryptocurrence came into being through ICO. In this article, I will try to explain things about the difference between security and utility token, the problems businesses face when they try to raise fund through security tokens and how Mobu will facilitate the release of security tokens on the blockchains and the solution it offers to protect investors.
UTILITY TOKENS
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These are the kind of tokens developed to represent future access to the company’s services. It is not investment in the literal sense of it. These features keep it far from federal laws and other governmental concerns.
Utility tokens are mostly desired when a company wants to attract potential clients before the launching of their services on which it intends to use the token. They sell digital units of these tokens to clients. An example is Fintech’s Omise that raised $25 million through utility token.
SECURITY TOKEN
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On the contrary, security tokens have federal regulatory issues. They are those tokens, like cryptocurrencies, that get their values from tradable facilities and such values depend heavily on external influences. In a nutshell, security token is more of investment contract where stakeholders speculate for profit.
These qualities have brought security tokens under federal scrutiny and regulation which do not always support companies’ intents for the ICOs.
THE PROBLEMS BUSINESSES FACE IN TRYING RAISE FUND THROUGH SECURITY TOKENS
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During ICOs, companies are made to follow a certain set of rules and regulations as established by relevant security agencies and this brings some restrictions upon the companies by deciding who should buy and who should not.
As a result, these regulations have imposed besetting limitations on companies who wish to raise fund through ICOs and any attempt to violate aspects of these rules, are met with stipulated punishment and the whole process will be disrupted.
Therefore, the adoption of blockchain technology by respective companies becomes a constant necessity because the entire process is different with blockchain. This adoption has successfully solved the problem of companies having to be held down killer-rules. The interests of companies and investors are equally covered. This technology has proffered solutions too tempting for any company to ignore.
To achieve more through the use of blockchain, Mobu is taking the center stage with awesome products and services, all aimed to depicting the latent beauty of blockchain technology.
WHAT THEN IS MOBU?
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There are also certain unique codes, peculiar to MOBU: MOBU ERC20 platform and the MOB20 standard needed to conform to the standards and requirement of Mobu.
See this short video for more insight into the core ideas of MOBU
To startup companies, Mobu offers lower fees, reduced complexities, and ready-made code for offering their security ICOs to the market. Again, it offers the following solutions to business owners:
Easy-to-use blockchain platform.
It addresses the restrictions imposed on business owners by regulatory agencies.
Peculiar Smart contract codes that conform to MOBU: MOBU ERC20 platform and the MOB20 standard.
Authorization centers for KYC/AML compliance.
Authorization centers for SEC approval for securities [reg CF, reg 504, reg 506(b), 506(c)].
Escrow services for investment safety, as well as, easy exit if companies renege on their promises.
Ensures higher overall ROI for investors and creates a network that boosts confidence and trust to ensure economic efficiency and incentivizes community growth.
Mobu has a finished plan to distribute its own token. This token is going to serve as the main token that conforms to a MOBU ERC20 platform and a MOB20 standard with which the Mobu marketplace will be created to ensure that trading is done under a fully regulatory compliance to the guidelines, created to provide security to both companies and investors on MOBU.
This token will be traded on approved exchanges and it can be used to access services.
The people behind MOBU project are reputable gentlemen and women who have acquired seasoned knowledge over the years in blockchain technology.
CONCLUSION
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Obviously, MOBU has the capacity to deliver on all these promises and even more. The solutions companies have been begging during their ICOs have all been factored and solved. Apperantly, none will be willing to be held down again by arbitrary regulatory policies which the federal securities are known for.
Good morning @newhyt
You mind if i ask you some question?
MOBU seem to be one of very few ICOs that are completly launched as security token. I wonder why. Wouldn't it be better to come up with some utility to their tokens and launch ICO as a utility token?
And also how will they maintan the price? Does MOBU offer Masternodes or POS to attract hodlers? If I cannot use those tokens and on top of that if there is no POS/masternodes introduced into their structure ... then what would make price go up or at least stay on stable level?
Great post. Upvoted already.
Yours
Piotr
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