With over 1 million wallet users and a publicly traded equity on tZERO, Exodus is trailblazing the security token industry.
Gooood morning, Rainmakers!
As always, I have two captivating topics for you to dive into:
1️⃣ The Vertalo DAAS Conference Takeaways: An incredible conference that made me realize in-person conferences are incomparable, the ICO era is behind us, and the future is bright!
2️⃣ Arca Leaves TokenSoft For Securitize: Arca has moved on from Tokensoft for transfer agent services and elected to utilize Securitize instead!
Without further ado, it's time to…
Get liquid 💧
🤝The Vertalo DAAS Conference Takeaways
First of all, a big shout-out is in order for the entire Vertalo team for putting on one of the best security token conferences yet!
Dave Hendricks was a humorous & impressive host who engaged & excited the crowd for the entire conference.
It was only 3 months ago that the Vertalo team decided to throw a security token conference.
Against all odds and the coronavirus still at large, I can honestly say it was the best conference I have ever been to (for real).
Here are some of my takeaways & observations:
In-person conferences are still incomparable:
Sure, Zoom conferences and calls are more convenient, but there's something crucial that Zoom will always lack - the human element.
Over the last 18 months, I was able to network and talk to the majority of the industry, but only online.
It was refreshing to finally meet/see everyone in person for the first time.
It almost felt like a security token reunion for everyone to congregate, share updates, and figure out a way we can collaborate.
That's exactly what happened.
The number of connections and collaboration opportunities that will come out of this will be amazing to watch unfold.
Just wait for the next time we all get together - it could quite easily be on the Moon.
The ICO era is behind us, with no crypto BS this time:
Over the past several years, I have had the fortunate opportunity to speak at conferences all over the world from South America to the Middle East.
At these conferences, I always noticed one common theme - a bunch of BS projects trying to get rich quickly by scamming the masses, while trying to act legitimately.
I can honestly say there was zero of that at this conference.
The ICO era seems to be an afterthought, with the STO era marching forward strongly.
For the longest time, the negative connotation of ICOs trickled into the STO industry, but for the first time ever, I think we have moved past it!
The STO era sentiment is about working alongside regulators while building the next evolution of the global financial system.
From the panels to the one-on-one conversations this past week, the STO era sentiment was echoed strongly and I couldn't be more fortunate to be a part of it.
The future is bright:
Since I joined the security token industry and Security Token Market team 3 years ago, the industry has grown exponentially.
When I started curating content, I used to spend hours scouring the internet to find anything I could relating to security tokens.
Today, everything is different.
Now it is quite impossible to stay on top of all the headlines.
That's what I witnessed at the conference.
Companies from all different spectrums of the ecosystem are building, creating, and reaching milestones week in and week out.
Whether it's industry participants receiving SEC approvals or companies announcing successful funding rounds, the industry is moving forward fast!
I know it's cliche, but it truly is a marathon, not a sprint.
There's no shortcut in life, especially with regulation.
My advice is to hold out, be patient, and build like there's someone trying to take it away from you.
Those who are willing to be around long enough will reap the rewards.
Dave Hendricks, CEO of Vertalo, voiced that the conference will be the smallest it will ever be.
Luckily for us, he even hinted that there will be another conference hosted by Vertalo sometime in the Spring! 🤞
👋 Arca Leaves TokenSoft For Securitize
For those of you who don't know, Arca is a full-service investment management firm offering institutional-caliber digital assets products.
They were the first investment firm to have an SEC-approved registered fund to issue security tokens!
The fund is called the ‘Arca U.S. Treasury Fund':
‘It is the first of its kind—a closed-end fund registered under the Investment Company Act of 1940 issuing shares as digital securities that are transferable using blockchain technology.’
Essentially, the Arca U.S. Treasury Fund is structured just like a mutual fund, but the main difference is it has a digital wrapper, which enables it to be accessible via the blockchain.
Since its inception, Arca elected to utilize Tokensoft for issuance and for their transfer agent services.
Just this past week, they decided to move on from Tokensoft and utilize Securitize instead.
I cannot say for certain as to why the decision was made, but it could be because Securitize has a more established infrastructure, pipeline, and brand.
I am speaking with the CMO of Arca next week, so maybe I will be able to share some insight!
Let's get basic on Transfer Agents (TAs):
A transfer agent manages and maintains records of who owns a corporation's or mutual fund's stock or bonds.
Some of their responsibilities include:
Issuance and Transfer: Issue and cancel certificates to reflect changes in ownership.
Record Keeping: TAs track, record, and maintain on behalf of issuers the official record of ownership.
Paying Agent: A transfer agent may also serve as the company's paying agent to pay out interest, cash and stock dividends, or other distributions to stock- and bondholders.
Still confused? Here's an analogy to help:
Transfer Agents are like chaperones for middle school field trips. The chaperones are a 3rd party that ensures there is an accurate record of all children (shareholders) on the field trip for the middle school (entity or Arca in this case) at all times.
The chaperone (TA) knows which children (shareholders) should receive what snack or homework (dividends or communications) from the middle school during the length of the field trip.
Stay tuned for insights from my call with Arca! 👀
What else is Drippin’💦
Securities Token Exchange InvestaX Debuts on MAS Sandbox: Another entity has entered the Singaporean sandbox!
German regulator authorizes security token offering on Bitcoin side chain: The security token is Exordium, which is the publisher behind the game Infinite Fleet!
SEC Charges Crowdfunding Portal, Issuer, and Related Individuals for Fraudulent Offerings: Comply or die (get in trouble).
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Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
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Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.