Soon members of the public will be able to invest in CROWDLITOKEN – the world’s first security token that combines the advantages of direct and indirect investments in real estate – through our upcoming Security Token Offering, or STO. CROWDLITOKEN’s security tokens represent a digital bond that allows investors to participate in a European core real estate portfolio, with no minimum investment required. Interested in learning more about our STO? Read on to learn everything you need to know.
What is an STO?
A Security Token Offering (STO) is the first opportunity that the public can invest in security tokens of a certain company. STOs are much like Initial Public Offerings (IPOs) of stocks and like Initial Coin Offerings (ICOs) of cryptocurrencies. Security tokens are real-world tradable assets that have been digitally represented on a blockchain. They basically act as a bridge between legacy finance and the new digital fintech world, taking benefits from each. Security tokens can be compared to securities and are subject to the securities legislation. To learn more security tokens and their benefits, check out our security token guide here. STOs offer unique advantages to both the businesses issuing them and to the investors. On the business side, STOs allow the opportunity to raise funds in a regularly-compliant manner from a wide range of investors all over the world. Compared to traditional securities, security tokens provide better efficiency, more liquidity, and improved interoperability, which translates to lower banking and brokerage fees. As for investors, STOs offer legitimate securities backed by actual assets protected by government regulation. As a result, STOs eliminate the possibility of fraud, a big problem that has plagued the ICO trend. This increased credibility and trust allows STO investors to have more confidence that their investments are sound and will make them positive returns. Best of all, STOs allow the public to take part in fractionalized ownership of high-value assets that the vast majority could never afford to invest in before – including real estate properties, which is exactly what CROWDLITOKEN is offering in our upcoming STO.
CROWDLITOKEN STO Details
Those that participate in the STO will also benefit from substantially lower costs in comparison to traditional investment funds due to less fees and higher efficiencies. Moreover, investors may adjust their real estate allocation flexibly at any time, and taxes are never withheld. CROWDLITOKEN’s STO will be organized in several different stages. First there will be a private sale available to selected investors. Then, the STO will open up to the public in the pre-public, public, and extended public sales. Discounts will be rewarded to those that invest early, as illustrated in the chart below.
CROWDLITOKEN will be using the funds raised from the STO to by and large invest in our hand-picked real estate portfolio across Europe, with 97.85 percent of all funds going exclusively into real estate. Out of the remaining funds, 1.61 percent will be used for operational costs, and the remaining 0.54 percent will be allocated for platform development.
CRT tokenholders admitted into the CROWDLITOKEN ecosystem will have the choice to either receive their interests in cash, or in additional tokens that may then get reinvested to further grow their real estate portfolio. For those interested in investing in high-quality real estate assets in an easy, flexible, and secure manner, we hope you will consider joining the CROWDLITOKEN ecosystem by participating in our upcoming STO. More updates will be coming soon! For further information regarding CROWDLITOKEN’s platform and more details on our STO, please see our whitepaper, booklet, and STO prospectus.