🏦 A NASDAQ-Listed Company to Trade On-Chain
Nutriband is going to dual-list on Upstream!
Gooood morning, Rainmakers! ☀️
As always, I have two captivating topics for you to dive into:
1️⃣ 🏦 A NASDAQ-Listed Company to Trade On-Chain: Nutriband is going to dual-list on Upstream!
2️⃣ ❄️ Aspen Coin's Back with Another Buyback: This is the second buyback this year!
Without further ado, it's time to…
Get liquid 💧
INX is a US-based marketplace/broker-dealer doing great things in the security token space. Specifically they just announced they're integrating with the Avalanche blockchain which is EVM-compatible.
With its end-to-end platform, INX is making it more accessible, secure, and cost-effective for companies to raise capital while providing the necessary regulatory guardrails to protect investors. As the digital security industry continues to evolve, it will be exciting to see what INX and Avalanche can do together!
🏦 A NASDAQ-Listed Company to Trade On-Chain
Nutriband Inc. (NADAQ: NTRB)(NASDAQ: NTRBW) was just approved for dual listing on Upstream which is operated by Horizon Fintex and our friends over at MERJ Exchange in the Seychelles.
For those unfamiliar with Nurtriband, they are developing a portfolio of transdermal pharmaceutical products with their flagship product being an abuse-deterrent fentanyl patch.
So wait, if they're already listed on NASDAQ, why do they need to go on-chain?
Great question! By tokenizing Nutriband will have the opportunity to reach a global audience of investors that can trade using not only USD and USDC, but also credit, debit, and PayPal. This matters because of increased liquidity for existing investors AND more people around the world get to invest in this US asset.
In fact their CEO says
Another great perk of tokenizing is that Upstream has a transparent order book. This can help prevent market manipulation such as short-selling. Upstream is also FDIC-insured meaning if funds were ever to be lost, the FDIC would make investors whole up to $250,000. After the FTX fiasco, that sounds great to me!
Investors are able to transfer their shares from brokerages and transfer agents in just a few steps found on the Upstream website. Security tokens will begin trading on January 5th, 2023 and will also get to redeem an NFT commemorating the dual listing which can also be traded.
I know what you're thinking... a security token is great and makes sense now, so why mess with an NFT?
Good news! They're doing it (in my opinion) the right way! Nutriband is keeping the investment separate from the NFT and its perks. Some may include participation in future digital promotions and redemptions for products, services, or experiences.
This is how all companies should treat their assets! If there's an investment involved, be compliant and do it as a security token. If you want to include investor perks, give out an NFT representing them... simple!
For more information click below
❄️ Aspen Coin's Back with Another Buyback
Why does this headline sound familiar? That's because it is! Aspen Digital has announced a second buyback of the $ASPD security token.
This means that investors can sell their tokens directly to Aspen Digital rather than to each other in the market starting on or around... Yesterday 12/19/22 for about 90 days!
Here's a rendition of me trying to stay serious when I hear "liquidity" coming:
So what happened the first time and why again?
The first buyback wasn't too long ago, it was from October 24th to November 18th of this year where Aspen Digital bought just over 226,000 tokens at around $1.10 each.
Now as we all know with basic supply and demand... as more tokens were bought back, there were less available (smaller supply) which results in the token price going up!
The feedback was so good in terms of increased liquidity and market efficiency that Aspen Digital decided to do it again!
This is great! What else is there to know about token buybacks?
Well this is not legal or financial advice but something to note is that there should be some kind of disclosures as to why a buyback is being issued! This is to prevent insider trading or other such behaviors. In the case of Aspen Coin it seems like they've done just that!
Let's look at a couple other perks in addition to liquidity:
- Tax efficiency: Capital gains are taxed at lower rates than income from dividends!
- Offsetting Dilution: Future hires may be granted equity which can dilute investors as it is vested.
- Market Efficiency: Additional value to shareholders in the future. Prices going up may spark trading.
If you haven't already, check out our main topic of The Security Token Show's 162nd episode which specifically covers this!👇
💦 What else is Drippin’
Did you enjoy The State of Security Tokens 2022? Well you're in luck! STM's Head of Institution and STA's Head of Research Peter Gaffney is back with The State of Security Tokens 2023 - Institutional Edition!
These are the biggest moves in institutional adoption of tokenized assets including those you've heard of like KKR and JPMorgan and those a bit more discrete such as AllianceBernstein, Figure & Provenance, and Regulated Liability Network (RLN) to name a few.
2023 should be an even bigger year, take a read and let us know what you think! 👇
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.
• No money or other consideration is being solicited, and if sent in response, will not be accepted;
• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and
• A person’s indication of interest includes no obligation or commitment of any kind.