San Francisco, 6 September 2018 – New company DESICO released to the public that they have a solution to some of the regulatory problems in the cryptocurrency market, and a solution as to how to bring proper price valuation to coin/tokens.
Cryptocurrency prices are known to fluctuate considerably. This can be attributed to how young the crypto space is as a whole. But one common theme that seems to be present is the aspect of cryptocurrencies losing significant price value.
Post ICO, many cryptocurrencies start off well (depending on market conditions), and then seem to simply die off and disappear, with price following. Coinmarketcap’s top 20 list (listed in order of highest to lowest market cap) is much different from year to year. Many top projects for 2016, are not even talked about in 2018. Namecoin for example, dropped from 13th in 2016, down to 189th in 2018. This is most likely due to cryptocurrencies being almost entirely speculative at this point in time.
Unlike owning a traditional financial asset (such as a stock), owning a cryptocurrency does not necessarily mean it’s backed by any value. Owning a stock means that the owner owns part of the company the stock represents, and has certain voting rights, etc. Value of the stock also fluctuates based on the value of the company.
DESICO is changing this for the cryptocurrency and ICO space. DESICO is currently building a platform for the issuance and trading of Tokenized Securities, in full compliance with EU member state law, which will provide a safe and legally compliant solution for ICO investment.
Anthony Pompliano (Founder & Partner at Morgan Creek Digital Assets) describes Tokenized Securities as “digital assets subject to federal security regulations. In layman terms, they are the intersection of digital assets (tokens) with traditional financial products — a new technology improving old things”. Tokenized Securities provide the innovation of blockchain, matched with the backing and safety that comes with traditional finance.
There are several core beliefs held by the DESICO team, which have fueled their platform development. According to Laimonas Noreika, Founder and CEO of DESICO, ICOs lack investor protection in the following ways:
- No real shareholders’ rights
- Misleading information by ICO issuers
- Lack of transparency for post-ICOs
Moreover, Mr. Noreika noted that ICOs face all sorts of frictions, including:
- Difficulty interacting with the conventional banking system
- Difficulty being listed on crypto-exchanges
The DESICO platform will allow startups to build their tokenized security, and then offer that token to investors in a transparent way, with clearly defined returns and terms. This means that investors will have investment rights, back by legal compliance. Put simply, DESICO is getting rid of the atmosphere where ICOs run off with investors’ money, leaving behind no legal course of action possible for the investor. DESICO also gives startups a way to conduct business in an upstanding and safe manner, with protection for investors.
DESICO also provides a way for retail investors to invest and trade Tokenized Securities and ICOs. As explained by Co-Founder Audrius Griškevičius, DESICO crowdfunding laws allow Tokenized Security issuers to raise capital “from retail investors up to EUR 5 million per year, through crowdfunding platforms like DESICO. DESICO will also have a regulated exchange, meaning that issued tokenized securities will be tradable on day one”…“DESICO is among the first platforms to offer tokenized securities for retail investors and will get some traction organically”.
DESICO is currently raising a $5 million equity round to finalize the acquisition of the necessary licenses, legal fees, and software development, followed by their own tokenized security offering.
DESICO is the first ever platform to issue and trade Tokenized Securities in full compliance with the law. DESICO operates under the Law of Crowdfunding for the Republic of Lithuania, which allows ICOs to issue Tokenized Securities to raise capital. Using DESICO, ICO-funded businesses will also have the ability to oversee their funds in the form of crypto or FIAT. DESICO is currently in its fundraising period, with a team of experienced managers in the fintech and entrepreneurial space.
DESICO is based in Paris, and in Vilnius (the capital of Lithuania), which achieved the third most ICO capital raised in quarter 1 of 2018, with the U.S. and China having the first and second most capital raised. As for those who question DESICO’s choice of location, Mr. Noreika responds by stating that “several Fintechs (e.g. Revolut) are operating with licences out of Lithuania for EU passporting reasons”.