Author Archives: Leon Ginsburg
Our previous post defined security tokens and explored several uses cases for “securitizing” various investments. We explained that security tokens are backed by real-world assets that are tangibly valuable. This makes the asset more liquid because it provides a building owner, art dealer, or classic car purveyor with access to capital while still retaining ownership of the tangible “thing.” While utility tokens are typically offered with an ICO and might grow in value, but can become worthless. But the differences between these two types of tokens is a little more complex.
Before digging deeper into a security vs. utility comparison, it’s helpful to first define a “token” to provide some needed context. In the simplest form, a token is an asset or some unit of value that is offered/issued by a company. This issuance is usually done through an initial coin offering (ICO), similar to the familiar initial public offering, or IPO. Instead of stock received in an IPO, an investor receives a token that corresponds to a set monetary value. Security tokens are offered as security token offerings (STOs), another category of investing where security tokens are exchanged for fractional asset ownership. So why are tokens not considered “coins?” Coins have a payment-related use case and their own blockchain, while tokens are secondary assets that do not run on their own blockchain.
In today’s business landscape, one trait sets the best companies apart from the rest: innovation. But what is it exactly that makes innovative companies tick?
There’s a paradox that runs straight through the business world: on the one hand, we need to make all the numbers add up. We must report back to our investors and make sure our profit margins are all on track. Too much risk, in this day and age, seems like a barrier to success and growth.
When planning your first ICO launch, you can’t leave anything to chance. Inform yourself on how to prepare your team, marketing strategy and legal issues.
ICOs, or Initial Coin Offerings, are all the rage these days. With all the ways cryptocurrencies are disrupting the global economy (and how we think about money), startups, investors and tech moguls are trying to get their own piece of the pie. You might be thinking the very same thing.
If you are, here are a few tips about doing it right.
Essentially, a security token is one that “securitizes” a real-world asset. So the coin is backed by an asset that has a tangible value, unlike an ICO that involves utility coins which might accelerate in value but can also turn into ether. Security tokens enable assets to become much more liquid as they allow fractional ownership of assets. And their blockchain-based structure means the ownership rights are transparent and easily verifiable. Here’s a simplified example of security tokens at work: Your friend is starting a cat food company, but needs investors. She offers a “Meow Meow” security token for $1, with a goal of raising $250,000. Investors buy blocks of the tokens and this ownership might come with certain rights or dividends. Your friend receives the money necessary to build a business, and the investors gain ownership stakes and the potential for profits as the business succeeds.
A key benefit of security tokens is they provide liquidity to the underlying asset. They’re cryptographic tokens that pay some sort of dividend, interest, or other payment to the token holders, so they are highly liquid compared to more traditional assets such as stocks or bonds. Many in the blockchain and cryptocurrency industries see security token offerings STOs as the future vehicle for investing instead of ICOs which peaked (and often crashed) in 2017.
One of the most common challenges with organizations embarking on digital transformation journeys doesn’t necessarily stem from a lack of ideas or lack of desire to improve. More often than not, it’s that traditional IT organizations and their CIOs are simply too entrenched in the day-to-day operations to be able to conduct a meaningful and long-lasting transformation.
Consider this scenario from one of our recent clients…
Even after CIOs realize that the journey towards the digital transformation of the enterprise cannot be further delayed, they are typically faced with two key questions. First, are they “good enough” for the task ahead, and second, how will this transformation happen — especially in the face of time, budget, resources, and other constraints. Let’s examine some possible ways that technology executives can respond to these questions.
The virtual workplace has leveraged collaboration tools to change the way businesses operate amongst themselves, with their stakeholders, and with clients. This has not only led to an increase in productivity, but has also innovated workflows and reinvented business processes by harnessing helpful data.
Today’s market is saturated with ideas for new products and services. Some ideas are ripe for potential, others not. Regardless, startup entrepreneurs are pushing to market faster than ever — particularly because of the capabilities of today’s technologies. With advancements in emerging technologies like virtual/augmented reality, artificial intelligence, machine learning, and natural language processing, it’s safe to expect even more ideas to come to light.
When I started Sphere Software in 2005, out of my modest Skokie, Illinois apartment, I couldn’t be bothered by something like “core values.” I was on a mission, trying to make a living off my passion: building great software solutions. I’d studied the competition and I had a vision — I wanted to make my products more human-centric.