Lithuania at the Forefront of Security Token Adoption
Lithuania will see the first European security token offering and mark itself as a crypto-friendly country and a potential leader in the next wave of security tokens.
Lithuania will see the first European security token offering and mark itself as a crypto-friendly country and a potential leader in the next wave of security tokens.
TheDESICOproject, which is preparing a Security Token Offering, points out that Lithuania will be the first European country to see this kind of financing event. The token sale would single out Lithuania as a pioneer in spreading the trend of security tokens.
https://twitter.com/desico_io/status/1057911402667622401
“Utility tokens are based on network affect while Security tokens are based on the actual performance of the company – no matter it’s a revenue participation note, equity or profit sharing Note. Investors get their returns from the results company delivers,” said DESICO CEO and co-founder Laimonas Noreika.
The DESICO team points out that Lithuania was ready with a framework for ICO regulation, but the token sale model lost its appeal over the past months, as investors lost trust in projects offering future usage of the tokens. The country’s legal framework also makes it possible to mark the start of what is seen as the next process for crypto assets - STO events. The upcoming DESICO platform that will host the next wave of STOs is endorsed by the Ministry of Finance, the Ministry of the Economy and its agency “Enterprise Lithuania.”
The idea of DESICO is part of a rising wave of platforms enabling the creation and trading of security tokens. Projects like Ravencoin (RVN) are already offering an infrastructure for security token offerings. However, for now, there are still no mass STO events, as the sector is reorganizing following the serious slide in ICO investments.
STOs will base their issuance on well-established stock issuance regulations, as well as offering tokens based on real estate, precious metals or other assets. Some STOs offer the opportunity to choose the target. For example, the Smartlands (SLT) platform opened voting on November 1 for the selection of an asset or a project to be tokenized.