Christopher Woodrow on the first Hollywood security token and blockchain technology for the film industry

Furthermore, liquidity is an important step forward. We are talking about a market with above average returns, but historically it has had very little liquidity. Now, suddenly you have liquidity. In my mind, we will see more money for this class of activity.

Finally, transparency is a key factor in the blockchain and something that the entertainment industry has been lacking for years. Hollywood has been one of the few places where many new technologies have not been implemented in the last 30 years. Adding a level of trust and transparency will bring more capital to this asset class.

Wolfson: What are your thoughts on the future of Bitcoin and the cryptocurrency market in general?

Woodrow: There is a good quote from the American journalist Charles Dow, who somebody told me in 2001 during the NASDAQ selloff. The quote turned out to be very precise and I think it is appropriate to consider where we are with the crypto market.

"In people's minds there is always a disposition to think that the existing conditions will be permanent," Dow wrote, and went on to say: "When the market is clouded and boring, it's hard to convince people that this it is the prelude to a period of activity and advancement.When the prices are high and the country is prosperous, it is always said that while the previous bombardments did not last, there are circumstances related to this, which make it different from its predecessors and damage guarantee of permanence The fact relating to all the conditions is that they will change. "& Nbsp; – Charles Dow, 1900

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The benefits promised by blockchain technology are starting to make their way to Hollywood.

Christopher Woodrow, American financier and CEO and founder of MovieCoin a financial technology company that leverages blockchain and digital assets within the film and entertainment industry, today announced the start of its public presale

Since the launch of MovieCoin, we have had tremendous interest from people all over the world, in particular we have discovered that blockchain technology can have a major impact on the financing of entertainment. [19659007] To invest in Hollywood, you previously had to show up with a check for $ 50 million to allow anyone to take them seriously. Using blockchain is possible open a new asset class to inv estors, Woodrow told me so.

With a limit of 10,000 bitcoins (BTC), the presale public follows the conclusion of the private pre-sale of MovieCoin, which successfully reached the company's soft cap of 2,000 BTC. MovieCoin will simultaneously issue two types of tokens during its presale – the Moviecoin Utility Token (MOV) and the security token MovieCoin Smart Fund (MSF). According to Woodrow, the MovieCoin MSF token is the first Hollywood SEC security token, which will be exchangeable for security token exchanges after a year of blocking. Security tokens are sold under Regulation D (Reg D) in the United States and Regulation Offshore.

Woodrow, who is no stranger to Hollywood, has financed and produced numerous noteworthy feature films, including box office hits, Black Mass and Hacksaw Ridge, as well as success critically acclaimed Birdman . Woodrow's films have grossed over $ 700 million worldwide and have been nominated for 16 Academy Awards, winning six Oscars, including Best Picture.

I had the opportunity to talk to Woodrow about MovieCoin's public presale, as a security token will benefit Hollywood and why blockchain technology will advance the film industry.

Rachel Wolfson: How will the "MovieCoin Smart Fund" security token (MSF) impact Hollywood?

Christopher Woodrow: We believe the MovieCoin Smart Fund security token (MFS) to be revolutionary for Hollywood in a number of ways. First, we're selling $ 250 million in security tokens to finance 60 films over the next six years. This means that 10 films will be financed with a security token each year. All films will be in the budget range of $ 15- $ 65 million

This will have a major impact on Hollywood in terms of film investment, a sector that has been incredibly illiquid. For example, whoever invests in a film is blocked for several years. Those who invest in different films could be locked up for a decade. The MFC MovieCoin security token will be freely exchanged on security token exchanges after a one year lock. This means that investors will be able to buy and sell tokens that represent the ownership of the underlying film portfolio. This is a significant change in Hollywood, given that a huge amount of liquidity is transferred to an illiquid asset class.

In addition, apart from blockchain technology that provides greater transparency and investor confidence, the MFS token is offered to accredited investors worldwide. High net worth individuals worldwide can now participate in the financing of major Hollywood films. Hollywood is still a closed club. Unless you know someone, you can not just finance a movie. But now for a relatively small amount of money, investors from around the world can participate in the financing of real films.

We are also working with BANKEX a top-20 global financial technology company that is developing the MovieCoin Proof-of-Asset protocol. The CEO of BANKEX, Igor Khmel, immediately recognized the value of what we were trying to do with MovieCoin. We created a partnership about a year ago with BANKEX and Igor raised about $ 70 million for our token sales in 2017. BKX tokens are issued by BANKEX, as a variation of ERC-20 utility tokens associated with the blockchain of Ethereum. BKX tokens are also accepted for public presale with an additional 5% bonus.

Wolfson: Why did you decide to offer both a security token and a utility token?

Woodrow: While utility tokens seemed to gain more fanfare in 2017, we still see the need. By offering the MovieCoin Utility Token (MOV), we can add tremendous value. And by offering both of these tokens, which are in many ways tied together, we can really do something truly unique to the film industry.

Wolfson: Do you think security tokens are the future of the cryptocurrency market?

Woodrow: Without a doubt, security tokens are the future. I think it could be 20 times the size of the current cryptocurrency market, and security tokens will be revolutionary in many ways. However, as regards the Initial Coin Offerings (ICO) and the cryptocurrency in general, I do not think this is something that is dying. ICOs have been publicized in recent years and are now cooling a bit, but this is becoming more regulated, which is good for everyone involved.

Wolfson: How exactly is blockchain technology for the benefit of Hollywood?

Woodrow: [19659019] In terms of blockchain, one of the key things to consider is access. To invest in Hollywood films earlier, someone had to present themselves with a $ 50 million check to be taken seriously. The use of blockchain technology can open a completely new class to accredited investors who were previously unable to do so.