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The idea that we could buy shares of big companies like Apple, Amazon and Tesla could soon become a reality with the recent reports regarding the launch of a new trading platform by DX.Exchange, a cryptographic exchange based in Estonia, which aims to make cryptocurrency investors exploit the blockchain technology to buy shares in companies including Apple, Tesla, Facebook and Netflix, through the purchase of security tokens.
This is important because many people believe that in 2019 security tokens will become the next big thing, filling the huge gap between the crypt and the world of traditional finance and investment.
What are security tokens?
Second TokenMarket, a basic definition of how security tokens work is as follows:
"A security token can be considered as if it were an interest, so an investment in a company, security tokens, represent equity or debt in an investment Security tokens can offer a direct return of the value of the investment, for example in the form of dividends per share or interest on bonds and loans, as well as other rights such as voting rights.The purchase of security tokens is considered an investment. to the securities regulations. "
Moreover:
"Security tokens can represent traditional financial instruments, such as stocks or bonds, in blockchain but giving equivalent rights Security tokens can follow existing security frameworks Security tokens offer buyers more legal protection because there is a legal framework for securities in most countries, security tokens can pay dividends or interest to its investors. "
An easy way to understand this could be by looking at the debate surrounding XRP as a security token for Ripple. Many people believe that since Ripple holds the majority of XRP, the sale of XRP directly refers to an investment in Ripple as a company, so it is security. Obviously, we do not know if this is true or not, XRP believers strongly believe that XRP is not a security and XRP haters, of course, believe it is. As a source of unbiased news, we can not be on both sides of the discussion, let's look only from far away!
DX.Exchange
Second CNBC, Amedeo Moscato, DX's Chief Operating Officer said:
"The crypto community has been talking about security tokens for over a year without much progress, so we think the impact will be huge with the tokenizing stocks of some of the largest publicly listed companies like Google, Amazon, Facebook and more, we are opening up an untapped market of millions of old and new traders all over the world who eliminate the intermediary ".
It is clear that Moscato is very optimistic about this new system and believes that these security tokens will offer a completely new investment style for people working through DX, even if not everyone in the community is just as positive about it. Dan Doney, CEO of Securrency, told CNBC:
"The ability to trade 24 hours a day, with a range of currencies, offers investors both convenience and liquidity.We are insecure and even skeptical about the DX.Exchange model because we do not consider it acceptable to list tokenized shares of a company without the consent of the shareholders, however we believe that the model can meet the regulatory standards if done correctly. "
The problem is that this type of trading comes with a whole series of regulatory uncertainties, much more than we usually find in the cryptocurrency sector in general. Do not worry, however, DXs are already working on a regulatory framework, which means they should not encounter difficulties when it comes to dealing with local authorities.
"DX has emphasized that its digital shares are classified as derivatives – with the underlying assets of 10 companies listed on the NASDAQ – and that its platform is regulated by the Mifid II directive of the European Union. series of reforms of the EU investment services regulation, aims to protect investors and increase transparency and confidence in the post-crisis sector. "
Our opinion on this
Overall we think this is very positive, it helps to make security tokens less disturbing and is giving the industry a real use case through which we can explore the sale and purchase of company shares using blockchain technology. If nothing else, this is a prime example of how blockchain really is usable and how important this technology will be in the future. For the likes of Apple, Tesla, Amazon, Netflix and all the other big companies, it can only be a good thing as it is encouraging investment in their activities.
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