Neufund Reveals Details of First Equity Token Offering
Neufund will use its tokenization platform to offer one of Europe’s first security tokens based on equity.
Neufund, the Berlin-based tokenization service, has released the details of one of Europe’s first Security Token Offerings (STO).
The public sale of the equity-based tokens, named FORCE (FTH), will begin at 11:00 UTC on December 9. The sale will be open to large-scale investors, with a minimum ticket of $100,000. German financial regulations lie behind the reason for the low accessibility of the project, as restrictions in place limit some offerings to avoid hurting the personal finances of small-scale investors.
The sale will have two separate periods: a week-long presale, followed by another week for the crowdsale. The token offering aims to raise between 1.2 million EUR and 6.6 million EUR.
The FTH digital asset will be an ERC-20 Ethereum-based token, with a max supply of 46 million tokens. The price of FTH will be 0.183 EUR with a 40% discount during the crowdsale.
One share of the underlying company will be represented by 10,000 tokens. The sale will accept Ethereum, as well as investments in EUR.
Security tokens are an area in development, and are highly dependent on legality and regional issues. Europe has become one of the testing grounds for combining traditional finance and token technology. Another ICO, Deltec, launched at the end of November, with the aim of offering a platform to sell security tokens.
However, projects that plan the sale of a new type of token still face headwinds as the crypto market keeps crashing every few days, wiping out the positions of Ethereum (ETH). ETH sank to $106.06, hurting previous crowdsales and projects that did not cash out on time. However, the potential access to fully legalized listed shares through owning Ethereum-based tokens may be an appealing bridge between the world of finance and generally accepted value, and crypto assets.
Security tokens, despite using a technology already easy to use, may need to trade on a different type of exchange to ensure legality and transparency. So far, the mass issuance of security tokens has been delayed until startups and projects come to terms with regulations. Previous ICOs that issued utility tokens are being investigated, especially in the USA, for selling unregistered securities.