DESICO to Launch Security Token Offering on Nov 7
STO platform provider DESICO plans its own security token offering as part of which the company will release its DESI tokens.
Cryptocurrency-focused startup DESICO said it would launch its security token offering (STO) on November 7. During the sale event, investors will be able to purchase DESI tokens, which will allow them to receive quarterly payouts.
Initially, DESICO planned to raise capital via an initial coin offering (ICO) involving a utility token. However, with confidence in the ICO space fading, the team opted for an STO instead. The company has obtained the required brokerage license to issue security tokens and make its STO fully compliant with EU laws.
The tokens DESICO intends to issue fall within the regulatory classification called revenue participation note (RPN). They will entitle investors to quarterly payouts. However, DESI will not give holders any company ownership as the tokens are not backed by shares. Still, investors will receive 12.5% of DESICO’s revenue, and there will be no cap on payouts. The startup plans to host the STO on its platform.
DESICO intends to operate under a joint venture with EU-based crowdfunding, brokerage, and e-money license holders.
The STO will be conducted in three stages: pre-sale, public sale, and hard cap. The pre-sale starts on November 7, with the company targeting $1 million. During this stage, the token price will be $0.98. The crowd sale will begin in January 2019, with DESICO hoping to raise $5.75 million. The third stage is aimed at institutional investors. Both retail and institutional buyers will be able to purchase DESI tokens with cryptocurrency during the STO.
There is a minimum investment requirement for all participants. Retail investors will have to spend at least $230, while accredited investors, who should be from the US, have to contribute at least $143,750. All have to go through KYC and AML verification procedures.
DESICO operates a platform allowing security token issuers to organize their STOs. The platform will also host a token exchange and will act as a payment system.
In June this year, DESICO won a prize at the ICO Race competition organized in Lugano, Switzerland.