In the last year, the cryptosphere has seen a huge rise in token generation events as ICOs took to the mainstream, with well over 2,000 cryptocurrencies on the global market. However, many of these tokens have struggled to gain legitimacy and recognition in the market amid increasing regulatory scrutiny.
Digital securities, including Security Token Offerings (STOs), are the latest attempt to combat this problem, and community engagement firm, AmaZix, has partnered with fintech marketing company, Issuance, to support these digital securities.
Security tokens are actual financial securities, backed by something tangible like the assets, profits, or revenue of the company. STOs promise more price stability than ICOs, and their popularity is on the rise.
AmaZix and Issuance want to give ICOs the tools and resources necessary to execute successful and compliant security offerings. The partnership will leverage Issuance’s fintech experience, complemented by AmaZix’s ICO marketing expertise.
Commenting on the partnership, Darren Marble, CEO at Issuance, said: “Smart money wants a simple process. It wants digital assets that are blockchain-based and are compliant with federal securities law. At the same time, companies also want a compliant way to raise capital.”
“We believe that our expertise allows us to fill a huge gap in STO advisory for companies, while our strategic partnership with AmaZix puts us into meaningful reach with investors who want in on the next big thing.”
AmaZix CEO Jonas Karlberg said: “While ICOs will still represent an important tool for blockchain start-ups globally, there is a growing acceptance that along with legitimisation and recognition for the underlying blockchain technology, cryptocurrency must be able to deal with regulations and compliance.”
“STOs will be inherently more difficult, costlier, and more time-consuming to launch, but Issuance has an impeccable understanding of the market and AmaZix are proud to have seal this cooperation with such capable partners.”