👋We Lost a Good One

Singapore is ahead of the curve and SPiCE VC is out

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Gooood Morning Rainmakers,

Motivational quote of the week:

“The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.” – Winston Churchill

Go kill it this week and…

Get liquid 🌊


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Singapore is leaving us all in the dust 💨

Throughout history, the nations that had the most land and resources were the most powerful.

With the onset of the internet, it somewhat evened out the playing field.

Smaller nations were given the opportunity to take away market share from larger nations by getting creative with the internet.

Fast forward to today, nations have an even larger opportunity to take away even more market share.

The opportunity is disrupting the financial system.

It is known that technology and innovation move at a much faster pace than regulation.

One nation not having this issue is Singapore.

Their SEC equivalent, the MAS, leaves the U.S. and the majority of other nations in the dust, with their ability to adapt to new technologies.

When it comes to innovation, the SEC is as slow as it gets.

According to an official report released on August 1st, 2017, titled “A Guide to Digital Token Offerings,” the Monetary Authority of Singapore (“MAS”) provided regulatory clarity on security tokens stating:

“…if a digital token constitutes a product regulated under the securities laws administered by MAS, the offeror issue of digital tokens must comply with the applicable securities laws.”

It's been almost 4 years and the U.S. still has yet to provide clarity.

Since then, many Singaporean firms are capitalizing on this.

When you provide clarity, it fosters innovation.

Why?

Because when companies know their product/service abides by the existing laws, it instills confidence in them knowing what they are doing is authorized.

A company by the name of iSTOX (now goes by ADDX) applied for the recognized market operator (RMO) and capital markets services (CMS) licensure.

After spending time in the regulatory sandbox (a test environment before going live), the MAS decided iSTOX was ready to go live with their RMO and CMS license.

They became the first one-stop digitized securities issuance, custody, and trading platform to be approved and licensed by a major regulator!

Just this past week, DBS Bank, a multi-national financial giant out of Singapore, issued a $15M digital bond STO.

The world better be on watch, because Singapore is just picking up steam.


We lost a good one, but not really 😏

Just this past week, the SPiCE VC security token was removed from the Fusang Exchange, which is a fully licensed securities exchange based in Labuan, Malaysia.

SPiCE VC Quick Overview:

SPiCE VC is a venture capital fund that was launched in 2017 with an investment objective of asset-backed security tokens.

Some of their most well-known portfolio companies include: Securitize, INX, Archax, and Exodus.

The SPiCE VC token was the first-ever security token to be tradable on a U.S. regulated marketplace - that marketplace was OpenFinance.

Sometime after, SPiCE VC found that listing their security token on the Fusang Exchange would enable Asian investors to access their asset.

SPiCE VC was only listed on Fusang for about 8 months and I am not for certain how active the token was.

The Fusang team had this to say:

“On 5th May 2021, the Fusang Exchange received notice that the Labuan FSA (Financial Services Authority) has concluded that the SPICE token, issued by SPICE VC, is substantially controlled by Israeli persons. Fusang Exchange’s Listing Committee met on 18th May 2021 and upheld the decision to delist SPICE under Section 17.1 (iv) of its Rules of Exchange.

Fusang has requested the issuer, SPiCE VC, to release their own announcement on this matter, but has yet to do so.

Normally, in the traditional markets, I would be concerned for the token holders, but due to the interoperability of security tokens, you can move your token if it’s trading on another marketplace.

Let's get basic:

Interoperability is defined as the ability of computer systems or software to exchange and make use of information or in this case, move your asset from platform to platform.

Read more here.

Normally, I'd presume Fusang Spice VC token holders could move their shares to the OpenFinance platform, but since Fusang is exclusive to investors in SE Asia, there might be some restrictions there.

In the case that investors can move their shares to OpenFinance, we didn't really lose SPiCE VC, it just won’t be any trading on the Fusang Exchange.


What else is making it rain ☔️


Fun fact of the week 🤯

There is one location in the U.S. where you can stand in four states at once.

What are the four states?

Hint: Two of them are popular ski resort states

Reply to this email with what you think the answer is!

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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.