There are currently over 38,000 ERC-20 tokens on the market, many of these tokens were doled out via ICO. Although Blockchain related companies issuing ICO’s allow their investors to claim a stake in the company’s assets and earnings via their token, hardly any of these companies have registered with the SEC.
Not registering with the SEC…is that a problem?
Recently in the cryptocurrency community, there has been a number of hearings with Congress regarding the future of Blockchain technologies and cryptocurrencies. So far, it seems like the unanimous decision has been that the Blockchain and cryptocurrency industries need some sort of regulation. That being said, several Blockchain related companies will find that they are the target of government offices once regulation has been created.
We have already seen a crackdown by the Hong Kong government on businesses continuing to operate illegally in the country. What’s astonishing is, out of all the Blockchain related companies that offer digital tokens that closely resemble securities, only a handful of these companies have registered with the SEC and are operating legally.
What is VaultBank?
Vaultbank is one of the only KYC, AML, and FATCA compliant global decentralized exchanges that has registered as a security with the SEC. Based out of San Francisco and built on Ripple’s Blockchain, Vaultbank is looking to merge the worlds of traditional finance and cryptocurrency.
VaultBank’s exchange will allow users to trade securities including equities, digital assets, mutual funds, and ETF’s. In addition to external securities, VaultBank is looking to provide a quarterly dividend paid out in Ether to the shareholders of their own company – investors who own VaultBank tokens (VB).
The VB token will be backed by a fund composed of credit assets managed by Random Forest Capital, therefore, the value of a VB token will be directly related to the value of the VB fund – this should be affirming to shareholders because their digital token is not worthless in the real world.
How can you invest in VaultBank?
Vaultbank will be conducting their ICO on February 17th, 2017. for more information, checkout Vaultbank’s website.