Tokenized securities startup DESICO announced its plans for its own official Security Token Offering (STO) of DESI tokens. Tokenized securities are currently gaining steam as the blockchain sector continues to mature.
DESICO is conducting a fully compliant STO as an EU member with all the necessary licenses. Originally planning a utility token ICO due to regulations, DESICO is now able to pursue its own STO following the acquisition of the necessary financial brokerage license which allows issuing of security tokens for their own business and platform (DESICO).
By conducting an STO on their own platform, using their own model, DESICO aims to show the public that they believe in their own system and product, as well as its effectiveness. Conducting an STO for their own platform allows DESICO to pave the way for its future clients, running its business on the same model that will be used for clients.
Laimonas Noreika, DESICO CEO and co-founder, explained that “out of all the security token platforms, we are the ones who are doing our STO the same way that we promise we will do for our clients, who will be eligible to do the same in the future”. Mr. Noreika also mentions that the STO model being demonstrated for Desi tokens will be a great example for future clients to see how the process will look for them in the future.
DESICO’s STO crowdsale will begin on November 7th, and will be classified as a Revenue Participation Note (RPN), with quarterly payouts to investors. This type of security token does not constitute as ownership of DESICO, but allows token owners to receive 12.5% of the total revenue earned by DESICO. (The total number of DESICO security tokens represents revenue sharing of 12.5% of DESICO’s total revenue. The number of tokens held by the investor determines how much of that 12.5% of revenue is paid out to the token holder.)
Using the RPN security model allows investors to share in the profit and success of DESICO, without needing to give their attention to other shareholders’ rights, such as voting, etc.
DESICO will operate under a joint venture with Crowdfunding, Brokerage, and E-Money license holders. There will be no cap on revenue payouts for token holders.
The DESICO STO will have three stages – pre-sale (stage 1), crowdsale (stage 2) and hard cap (stage 3). Pre-sale (stage 1) will begin on November 7th 2018, and will have a cap of $1 million. Crowdsale (stage 2) will start in January 2019, with a hard cap of $5.75 million. The rest will be sold to institutional investors at hard cap price (stage 3). Payment will be made via cryptocurrency and then converted to Euros.
STO Price Per Token:
Pre Sale – $0.98
Crowdsale Part 1 – $1.07
Crowdsale Part 2 – $1.09
Hard Cap Price – $1.15
The minimum investment for retail investors will be $230, with a maximum investment of $5,750,000. Accredited investors will have a minimum investment requirement of $143,750, with no cap on maximum investment.
Investors must also pass KYC and AML requirements. According to current laws, only US investors must be accredited. DESICO allows US companies to add an additional $5.75 million from non-US retail investors to their security offering. While most platforms are limiting access to institutional and accredited investors due to regulatory issues, DESICO creates an opportunity for projects to access $5.75 million per year from Main Street investors.