Indiegogo Expansion Allows Firms to Sell Securities Tokens
Successful crowdfunding platform Indiegogo is looking to expand its cryptocurrency and blockchain-based operations. The company is launching a new service which will allow companies to sell digital tokens that are backed by assets.
Indiegogo’s New Service Expands on Earlier Efforts into Crypto Space
The latest service from Indiegogo will first offer investors the chance to buy real-estate shares in a luxury ski resort in Aspen, Colorado. The St. Regis Aspen hotel is looking for $12 million in investment for redevelopment.
The tokens are being issued by Aspen Digital and will be hosted on the Ethereum blockchain. The service will go live tomorrow evening and will allow accredited investors the opportunity to buy “Aspen Coins” through registered brokerages using either Bitcoin, Ether, or USD. Indiegogo will be promoting the offering by creating a landing page for the scheme.
Each Aspen Coin will represent an equity stake in Digital Aspen, the owner of the St. Regis resort. According to The Verge, future partnerships would see different companies offering shares in real estate by issuing similar securities tokens.
The move is the second foray into the world of cryptocurrency and blockchain-based tokens from Indiegogo. The crowdfunding site previously launched an ICO platform last December. The idea behind the ongoing initiative is to give investors assurance of the legitimacy of a particular offering by attaching the Indiegogo brand to it. The co-founder of the company, Slava Rubin, stated that the company has enlisted a team to check the credentials of all the ICOs hosted on the platform.
In a phone interview with CNBC, Rubin spoke about the two ventures:
“We have been working on our blockchain offering for a while now… It really goes back to our original vision where we wanted to democratise access to capital and bring investment to all kinds of people around America and the world.”
The new security-backed approach announced today comes in light of increased regulatory scrutiny into ICO fundraising. By ensuring that securities-tokens are issued in line with existing securities laws, Rubin believes that they are less likely to face opposition from regulators. He stated:
“In my opinion, cryptocurrency and security-backed tokens are two very different things… Hard assets are less speculative and they’re likely to pan out in the future.”
Selling tokens as a means of fundraising rocketed into the spotlight last year with many projects receiving tens of millions of dollars for little more than an idea. According to recent research, many of 2017’s ICOs have since failed or been found guilty of fraudulent activity by regulators. It is precisely this attention that the new Indiegogo platform seeks to avoid.
Featured image from Shutterstock.