Gooood Morning Rainmakers,
This newsletter is brought to you by Realio, a blockchain-enabled issuer, fund manager, and technology provider specializing in real estate private equity.
Without further ado, it's time to…
Get liquid 🌊
Elon Had Nothing to Do With This One… Promise 🤝
It seems to be that half of Elon's workday is trolling the world about Dogecoin.
Let's get basic: Tokenization is the process of converting something offline onto the blockchain.
We at STM have been preaching for years that all publicly traded equities would inevitably be tokenized.
It's fascinating how they were able to pull this off!
This is how it happened:
CM-Equity AG, a German-based asset management firm owned a bunch of Tesla stock.
They created a fund that exclusively owned the Tesla stock.
Digital Assets AG tokenized the fund to break it up into shares.
The shares represent the value of the fund, so indirectly you own Tesla stock via the tokenized stock on Binance.
“But Jonah, I can buy Tesla on Robinhood, why would I buy the tokenized version?”
That's a phenomenal question, and fortunately, I have an answer for you:
Current stock market pitfalls:
T+2 Settlement: This means that when you sell your stock position, it takes 2 business days for you to receive your proceeds of the sale.
Limited access: Difficult for non-us investors to invest in the US public stock market.
Restricted trading hours: Normal trading hours are 9:30 AM to 4PM EST.
Tokenized stock benefits:
Instantaneous Settlement: Receive your proceeds from the sale virtually instantaneously.
Global Access: Many jurisdictions can invest more swiftly.
24/7 trading hours: Trade at 3 AM if you feel the need .
Essentially, to really paint a picture for you…
If you ever needed a last-minute gift for your mom on Christmas and didn't have cash, tokenized stocks can solve this!
When you sell your tokenized stock, you receive the proceeds of the sale immediately -allowing you to get your mom that gift the very same day. 🤯
In the existing financial system, trading is closed on Christmas, so your mom would be pretty upset with you.
Don't be the no-gift person, be the tokenized stock investor.
Investing has never been more inclusive 👐
Flashback 9 years ago to when we were all blasting “Call Me Maybe” on repeat (yes you were, there's nothing to be ashamed of) and confused as all heck about Kony 2012…
In case you forgot the song:
There was also a historic achievement that occurred in the private securities world.
You see, there was a time that privately owned firms could only raise money from the ultra-wealthy.
These firms were barred to market their offerings to the general public, making it very difficult to raise capital.
That changed in 2012.
For the first time ever, due to the JOBS ACT of 2012, US privately-owned firms were granted the ability to solicit their investment offerings to the public.
Absolute Game changer.
However, we have never seen a tokenized Reg A+ offering before.
One of the most prolific cryptocurrency wallets, Exodus, is raising $75 million from US public investors.
It is the 1st-ever SEC-approved Regulation A+ tokenized offering!
Revenue tripled last year from $7M to $22M
Monthly active users increased from 130K to 600K in 2020
1.25 million all-time users on the platform
The fact that Exodus already has an extremely strong retail user base, it will be very easy for them to raise $75 million.
By no surprise, they have already raised 82% of this amount in about a week.
The future is here.
Interested in investing?
What else is making it rain ☔️
Blockchain Capital Announces Q1 Results: BCAP has been soaring thanks to their crypto and pre-IPO Coinbase positions.
The SEC has a new chairman: Gary Gensler was officially sworn in as the new SEC Chairman per nomination from the Biden Administration.
Tokenizes stocks are going mainstream: FTX, the crypto trading platform, has now listed 30+ tokenized stocks including Tesla.
Fun fact of the week 🤯
Security tokens and Bitcoin have nothing to do with one another.
The main similarity is they both use blockchain as their underlying tech infrastructure.
Game of the Week 🎯
“Guess that soccer club!”
It's located in Spain 🇪🇸
They have experimented with cryptocurrencies
Their star player has won 6 Ballon d'Or Awards 🏆
Reply to this email with what you think the soccer club is! If you are right, we will shout you out on our socials 💯
Connect with us ☎️
Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
For any questions, suggestions, etc - email me at Jonah@stomarket.com and follow me on Twitter!
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.