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Monday, August 13, 2018

Mobu ICO: Security, for security tokens...

Do you remember Zabercoin? If not, it’s probably because the ICO failed in December of 2017. If you do, it’s most likely because you invested money—and got a unexpected refund. While this may not seem like the type of history you want behind a their new ICO, let me explain why Mobu is a special case that may warrant your attention.

Mobu is an ICO in the business of launching security token ICOs. What is a security? Think of securities as assets similar to stocks. When you purchase stock in a company, you expect to receive dividends based on that company’s performance in the future. A security token acts just like company stock, but for cryptocurrency projects and ICOs.

This is often in contrast to a utility token, in which the purchase of such an asset can be used as a function of that cryptocurrency, network, system, or software application. In other words, utility tokens get used in participation. Basic Attention Token doesn’t represent the business health of the company, but is meant to be shared, traded, and given as a reward to users of the Brave browser.

In the Spring of this year, the U.S. SEC made it clear that security tokens will be heavily regulated, which scared hundreds of newly launched ICOs into finding utility purposes of their tokens, which were most likely intended as a fundraising method from the beginning. The truth is, registering as a security shouldn’t be detrimental to an ICO’s success. Mobu proposes to pave the way for dozens of security tokens to achieve that legal status and ease the growing pains associated with getting a security off the ground.

Mobu will provide access to legal advisors, technical support, KYC/AML guidance, and auditors. Essentially, everything necessary for a security token ICO Mobu will offer support for. The Mobu token will be the medium of exchange for so-called issuers, developers, KYC providers, investors, and legal representatives. It will be the currency of their own network of professionals available to make sure your ICO is operating legally and efficiently.

If you are familiar with security tokens in crypto, there’s a good chance Polymath comes to mind. They are the main competitor offering a similar service to budding ICOs. While both tokens are smart contracts that offer assistance with KYC and legal support, Mobu claims an advantage in two significant ways. Firstly, they will offer an escrow service that would protect investors from frauds, scams, and failed ICOs. Second, they will have bank support for conversion of fiat to crypto. More information is necessary to understand exactly what this entails, but it’s not hard to imagine the convenience such a service when considering the traditional methods of sending ethers off in exchange for promises of future ROI.

So why would the creators of Zabercoin be well suited to this? For one, they know first-hand the difficulties with an ICO launch, and specifically to do with securities. Perhaps they learned from their detrimental mistakes. Zabercoin was an attempt to create a security token for real estate, where the tokens were backed by property and therefore maintained inherent value. In a sense, Mobu is taking all their lessons and focusing them on assisting new ICOs encountering the same problems. While Polymath claims to offer a similar service, one could argue that their team simply doesn’t have the battle-tested experience of Mobu.

The pre-ico commenced on September 1st, while the main ICO isn’t scheduled until Decmber, and token launch later in the Spring of 2019. Compared to most of the ICO roadmaps we’ve seen this year, Mobu is quite conservative and realistic with their estimates. Keep in mind this would be a long-term investment for those so-inclined.

For more information, video, and the Mobu whitepaper, please visit https://mobu.io/
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Author: Vincent Russo
Los Angeles News Desk