The next pivotal step in the evolution of tribeOS, the ad fraud-free marketplace built on blockchain, was completed recently with the submission of a Security Token Offering and ICO Application to Bermuda’s Ministry of Bermuda.
Dealing with a governmental body, especially one with the intrinsic financial rigor of Bermuda, required an “all hands on deck” approach and mindset. The tribeOS team that prepared the necessary documentation included the company’s leadership, experienced digital currency consultants, an internal support team as well as three sets of legal counsel, including one that was Bermuda-based.
The stakes are high especially considering that tribeOS seeks to be the first federally approved Security Token in Bermuda.
Bermuda was a natural target since it has taken the lead on recognizing digital currencies with the recent passage of the ICO act. This on top of their already stellar reputation as a hub and headquarters to multiple Fortune 500 companies from the insurance and business services sectors.
Preparing the offering to Bermuda took a unique and strategic approach. In essence, tribeOS innovated a new model and structure for a Security Token Offering. The Security Token provides IPO-type protections within a cryptographic asset.
With digital currencies, there are two different types of tokens: utility tokens and security tokens. tribeOS FIRE is a Security Token. A recent article in Entrepreneur Magazine about preparing a Security Token helps illuminate why these type of tokens are unique in the marketplace.
As AJ Agrawal of Entrepreneur explains, “Rohit Kulkarni, managing director of SharesPost, argued in a guest contribution to the Nasdaq blog, for example, that security tokens represent a perfect mix of utility tokens and venture capital. Venture capital boasts: issue-investor alignment (with everyone incentivized to help the venture succeed); access to expert networks; KYC-AML compliance (which protects investors and companies from fraud and money-laundering); and regulatory oversight. Utility tokens offer investor liquidity (quick access to cash via exchanges) and a dynamic investor community.”
For investors, Entrepreneur’s Agrawal was also quick to pinpoint the attraction. “These tokens can appeal to a wide range of accredited investors when companies reach out to them properly. Traditional investors will respond to their increased liquidity and lowered administrative costs while feeling reassured by the presence of investor protections and real-world assets.”
As tribeOS awaits approval from the Bermuda Minister of Finance of the Security Token Offering [STO] the company continues to develop the ad marketplace and expects to have a demo available in 2019.
To learn more about tribeOS and the FIRE Security Token, a business white paper is available for immediate download.