Aug 062018
 

Mobu is a new crypto project that takes aim squarely on the security token space. This of course means it is different from many other ICOs you might be familiar with. Mobu offers a suite of comprehensive tools and standards for compliant security tokens. These tokens are issued on the blockchain as ERC20 tokens. However, unlike many other tokens that you might be familiar with, the tokens issued on Mobu are security tokens.

So what exactly is a security token? A security token is a token that investors buy for the expectation of profit. Simply put, the SEC could consider a security token, well, a security. Unlike many other ‘utility tokens’, security tokens imply profit from operations. However, like utility tokens, they are created on the blockchain and can therefore be traded in an easier manner than traditional securities. These security tokens also leverage all the infrastructure built on existing blockchain platforms.

Compliant ICOs

There is a lot of ongoing debate about crypto tokens and whether they are securities. As you might expect, different jurisdictions treat this differently. It is very hard for ICOs to successfully raise money and be in compliance with all rules and regulations. This is a huge problem for innovation. Innovators cannot seek to wait for permission from all government bodies before working on a project. That would never get off the ground.

So what should ICO projects do that wait to raise capital by issuing tokens? Go the security token route. This means the tokens follow all appropriate securities laws. Sure, this would limit some of its use for crypto investors, but it also has some benefits.

What MOBU Provides

Now that you want to issue a security token, how do you go about doing it? The compliance is not easy. There are many possibilities for investment structures as well. Someone starting new would find it overwhelming what choices to make. This is where the MOBU platform comes in. It provides a suite of smart contracts to make this an easy job. In addition, to has created certain standards, dubbed the ‘MOB20’ standards. If you believe that the Mobu team has done their research and the standards are solid, then you can simply adopt them. This saves you the headache of doing it all by yourself, after all.

Such industry standards are bound to be the future especially for security tokens. Whether Mobu can take the lead and become that beacon remains to be seen.

To give you an example of the standards, Mobu has an escrow system that is tied to reaching project milestones. This means if the project founders fail to meet their goals, investors can claw some of the ICO money back. This builds investor trust.

Mobu also helps projects and investors with all the logistics of an ICO. This can be anything from banking relationships to regulatory compliance. KYC/AML is also a big part of compliance. If you need help with all these issues, Mobu might make the job easier for you. You can simply fund your project through Mobu. Some examples of projects that might find this interesting are real estate crowdfunding tokens or another asset backed tokenization project.

If you want to learn more about the project, check out the website. If you want even more information, here’s the whitepaper. Mobu itself is undergoing an ICO to raise money and distribute its tokens. If you’re interested in participating, remember that token sales and ICOs can be extremely risky and you can lose all your money. Never invest more than you’re willing to lose.

Photo Credit: Flickr

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