In our latest article, CEO and Founder of Tokenomica Artem Tolkachev shares his initial ideas about the platform and talks about Tokenomica’s current progress as well as goals in the development of the platform.
Since 2016, I’ve been closely working with many ICOs as a lawyer. It was around that time when I realized the main problem with ICOs, utility tokens and crypto in general: the lack of regulation. The sad truth is, the law is always one step behind reality. In some cases, consequences of this lag are insignificant, but in the whole ICO boom case, the lack of regulation and the absence of investor protection mechanisms gave rise to countless fraudulent ICO campaigns. You don’t have to be a lawyer to understand that.
There would probably be no ICO bubble in the first place if not for the fact that ICOs have been staying in the legal grey area for too long. Up until last two years or so, regulators didn’t take much interest in ICO-related activities: had they concerned themselves earlier, crypto investors probably wouldn’t have lost that much money to scam projects; moreover, ICOs on a whole wouldn’t be widely regarded a running joke now.
Sadly for many ICO investors, things turned out the way they did.
Over the last few years, as more projects were gaining notoriety for repeatably breaching investors’ trust, the hype around ICOs began to dissolve. At the same time, STOs started gaining significant traction. Tokenized securities bare the legal essence of their traditional counterpart, meaning that they represent a potentially much more heavily regulated asset than utility tokens. This allows for better investor protection — for those who have burned their fingers on ICOs, this fact must mean a lot. Having lost their faith in ICOs as an investment mechanism, many investors started to perceive STOs as a promising alternative.
For me, it was obvious that the whole concept of asset tokenization could boost the development of financial markets — the lack of regulation and is the only thing holding this process back. The financial market needed a solution that would combine regulation and the technological tools used for crypto. Basically, that’s how we had the first idea about Tokenomica.
That said, around the time we’ve started Tokenomica, there was no common understanding of what STOs are and how they should be regulated. Most fundraising campaigns presented as STOs weren’t really that different from ICOs — neither legally, nor essentially. Thus, the regulation problem remained unaddressed. Aiming to fix this, we’ve developed the concept of smart securities — a totally new kind of asset, a tokenized security traded in a decentralized way in total compliance with securities market regulations.
Our vision of the platform has significantly evolved since it’s early days. The core idea, however, remains the same: to bring the long-awaited change to the securities market by easing up the process of capital attraction for companies and investors alike. All of the above done in full compliance with the current regulation (high priority for me is a lawyer).
In roughly one year since the inception of Tokenomica in November 2018, we have managed to build the platform from scratch and launch 3 out of 4 of its major components, not to mention countless beta versions. That was a lot of work.
Right now we’re reaching a new milestone, onboarding first corporate clients to launch their fundraising campaigns on Tokenomica and making partnerships with large-scale companies such as one of the major issuers of bonds in EU (to be announced later). We are also getting ready for an extensive PR-campaign to break into the market guns blazing.
As for the priorities regarding the development of the platform, we are currently working on the implementation of a fiat gateway, a platform for secondary trading of smart securities issued on Tokenomica, and OTC. Elaborating on the features soon to be implemented would make this text twice as large — you can read about them in this article.
The main thesis is as follows: as soon as these features are launched, Tokenomica platform will fill a market niche of its own. We’re aiming for this platform to become one of a kind.
Before doing a private funding round, we’ve decided to launch our public fundraising campaign to showcase the benefits of our platform. In a sense, this campaign is meant as a proof-test of the platform and a demonstration of Tokenomica’s capabilities.
It is also a way to show that we are not turning our backs on retail investors. We’ve decided not to limit our investor audience to institutional investors only. Retail investors have been following the project since day one — rather than letting larger-scale investors muscle them out, we would like to see them grow together with us. At the end of the day, one of the main ideas behind Tokenomica is to provide investors with an opportunity to invest in promising companies — exactly the type of company Tokenomica is.
I invite you to explore the platform yourself. Maybe you will find it in your heart to join us on the journey to revolutionize the securities market and purchase your piece of Tokenomica’s equity.