RE: Running Security Token on Polymath - is it a REVOLUTION? (tutorial included)

[achim03]

Hi @neavvy,

Thanks for this article. I've been running into the STO concept recently but didn't exactly understand how they work. Thanks for clarifying it here.
I've been in the crypto scene for since 2014 and I have seen so many scams that I couldn't understand how people could trust all these ICO's. The nicer the whitepapers the more people threw their money after them. The nice packet doesn't make a good content.

Reading your article above makes me believe that STO's are a step in the good direction. STO's are something like shares of a company. Meaning that in theory every token has some real value.

Where is the asset behind a token?

What I didn't get (maybe you wrote it but I didn't find it) is how the real value object is linked to a token? If I sell parts of a hotel, how can the buyer be sure that I actually own the hotel? What guarantee does he have that I don't sell the hotel in the meantime?

Best regards,
Achim

Comments

[crypto.piotr]

hi @achim03

What I didn't get (maybe you wrote it but I didn't find it) is how the real value object is linked to a token?

this is indeed very good question. one that noone could answer to me yet. at the moment is seem that STO is still kind of "theory" and we need to wait for Polymath or other platforms to launch their final products.

Yours
Piotr

[neavvy]

Thanks for your comment @achim03

If I sell parts of a hotel, how can the buyer be sure that I actually own the hotel?

I think that's the point of those regulations. If you try to trick citizens and tokenize something that actually doesn't exist, organizations such as SEC will react instantly. But Piotr is also right, we have to wait until the final product of Polymath is released to see how are they going to meet the regulations.

Regards,
Jan