Indiegogo Is Selling Real Estate Tokens On Blockchain
The blockchain has been disrupting the digital to a very large extent. The market is being restructured by this technical bliss. Many financial institutions have been taking advantage of the blockchain technology and its applications to grab market opportunities and profits.
Indiegogo in partnership with St. Regis Aspen Hotel has a blockchain backed the project
Indiegogo has been using the blockchain strategically to have their fair share of the market and helping businesses to venture into the not so trodden universe of the blockchain.
On 24th August 2018 Indiegogo began promoting a new real estate scheme. This innovative scheme enables accredited investors to buy the shares of St. Regis Aspen Hotel, in the form of digital tokens. The hotel is aiming to raise an investment of $18 million using these Aspen coins (security token).
This recent move of Indiegogo is part of the latest trend where companies launch real-life asset-backed cryptocurrencies instead of normal tokens. Most cryptocurrency enthusiasts look upon asset-backed coins as a stable and legitimate alternative to ICOs.
Indiegogo – taking a hint from last year project
Indiegogo has been keeping up with its last year’s tradition of trading in cryptocurrency. Last year in December Indiegogo promoted other companies blockchain backed project. The company deemed it a successful one as it was able to meet its fundraising goals. The company has again involved itself with asset-backed cryptocurrency project to take an edge over ICO related SEC probes and falling price of digital coins.
With ever increasing cases of ICO fraudulent cases and distrust of investors in small projects, Indiegogo has a lot of potential hurdles to face.
The company co-founder, Slava Rubin said in his statement, “In my opinion, cryptocurrency and security-backed tokens are two very different things.” He also added, “Hard assets are less speculative and they’re likely to pan out in the future.”
Mr. Rubin’s vision of a dominant funding venue for the crypto community is security tokens. He said, “Imagine real estate — not everyone can own a piece of it, but with this method (security asset-backed tokens), they potentially could.”
The company plans to take advantage of the aftermath of ICO regulatory scrutiny and then start launching security token offerings to comply with the SEC and federal regulations.
This smart move would force the crypto community to come up with new innovations and not just play with crypto or Altcoins. With these moves, the market is going to surely be more transparent and stiff in terms of competition. This move would also ensure the participation of the general public not just accredited investors.