WP FINAL 221018 SPREADS F - Flipbook - Page 1
Opportunity
NASDAQ-US
TMX Group
NASADAQ OMX Nordic Exchange
Token Economy
London
Stock Exchange
Over the past two years alone, the token economy has seen rapid growth. In 2016, from among the 29
Token Offerings (or ICOs) who participated, $90million of capital was raised. Throughout 2017 this led to
the creation of nearly 900 Token Offerings and just over $6billion in capital raised. This contrasts sharply to
circa $2-3billion through the traditional venture capital space and is an exciting development for investors
monitoring the crypto space. By the end of May 2018, there have already been 854 Token Offerings which
have raised capital of circa $5billion, which is increasing every day. To respond to this growing market
demand, Tokenise is looking to capture market share within the token space by launching a platform that is
both reliable and able to bridge the gap between the regulated (securities) and unregulated (utilities).
Deutsche Boerse
Shanghai Stock Exchange
Six Swiss Exchange
Korea Exchange
NYSE
Euronext
Japan Exchange Group
Shenzhen Stock Exchange
Hong Kong Exchanges
and Clearing
National Stock
Exchange of India
$20T
BSE India
Limited
$10T
$5T
$2T
The below graph demonstrates Token Offerings (ICOs) launched from 2015 to 2018 to date:
Australian
Securities Exchange
ICO funding 2015 - 2018
1136
900
40.6%
19.5%
33.3%
675
450
225
Over
93% of global stock value is divided between three continents
Source: http://www.visualcapitalist.com/all-of-the-worlds-stock-exchanges-by-size/ Date sourced: February 2018
0
2015
2016
2017
2018
$6,084,000
$90,250,273
$6,101,438,558
$7,109,053,324
Capital Raised
No of ICOs
Source: https://www.icodata.io/stats/2018 Date Sourced: September 2018
The opportunity behind tokenised securities is potentially significant. In 2016/2017 we saw an unprecedented
rise in token offerings and the amount of capital raised from the crypto market, though this is still dwarfed
by the value of more traditional stocks by a huge margin. There are over 60 major stock exchanges around
the world, with a total value of $69trillion, of which 16 have a market capitalisation of over $1trillion.
Furthermore, this does not take into account the hundreds of other exchanges that cumulatively represent
several trillion dollars.
TK038 V001
Hedge funds, private equity and venture capital firms all have certain mandates that they are instructed
and obligated to follow. Along with such mandates, for the vast majority of such firms, the requirement is
to purchase securities (equity or debt) and although many players within this market are keen to join in the
crypto space and benefit from its generous returns, they are unable to participate. In total, the amount of
capital held by hedge funds amounts just over $3trillion (in 2016) and $2.5trillion in private equity.
Therefore, as a solution to this dilemma in the market, Tokenise combines the old with the new; the ability to
offer the opportunity to own underlying security in the business while gaining exposure to cryptocurrencies
and utility tokens. This approach is also convenient for individuals who may not understand the concept of
tokens/crypto but are still familiar with the concept of buying stocks, shares and bonds.
Tokenise will be amongst the first regulated platforms in EU to conduct regulated issuances on a tokenised
crowd-sales platform using a distributed ledger. This will enable those looking for a listing to finally tokenise
shares (equity), bonds (debt), profits (derivatives) and royalties. This means that a token will no longer need to
be structured to circumvent securities law, and that this new structure will be able to accept a broad range of
asset classes (shares, real estate, bonds, utilities etc.) within the confines of a regulated platform.
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