ROKKEX: Why STO = ICO + IPO?
Welcome to Digital Security Frontier Vision: The Voice of the Core Builders from Global Digital Security Industry #23.
Welcoming Mindaugas Savickas from Rokkex, the crypto exchange which now thinks of Security Tokens as a key point. And now they are committed to making trading secure and easy.
Enjoy the Interview!
1. What is ROKKEX Security Token?
Rokkex Security Token (RKX) represents a 10-year debt obligation of Rokkex to its investors and offers a share of 15% of the gross profit accumulated by Rokkex and a 5% fixed interest rate from the nominal value, both of which are paid on quarterly basis. In terms of traditional securities, RKX token is structured as a bond with a variable interest rate which amounts to 15% of gross profit of Rokkex and a fixed interest rate which amount to 5% of the nominal value of the bonds. The bonds also have a maturity term of 10 years.
2. What licenses does Rokkex have?
Rokkex is authorized by the Estonian Financial Intelligence Unit to provide the service of exchanging virtual currency into fiat currency and the service of a virtual currency wallet.
3.Why STO = ICO + IPO?
STO, as a funding instrument, inherits the best qualities of ICO and IPO. STO has the reliability that an IPO has due to legal regulations that apply to STO in the course that through this funding process a token is issued that is considered a financial instrument (equity, debt obligation, etc.), and also the relative simplicity and accessibility that is inherent in ICO due to its availability to the general public.
4. Why would ROKKEX, which is based in Europe, want to do STO in the U.S.?
It’s simple — Rokkex wants to attract more investors in order to raise more capital for its future expansion and development. Moreover, analysis reveal that U.S. market is way bigger in terms of available capital flow and investment volumes than, for example, the European market is.
5. Why did ROKKEX choose Reg D?
Simply put, it’s the most convenient and accessible exemption of the U.S. securities and financial markets regulations that enables foreign entities to raise capital from accredited U.S.-based investors and opens the U.S. market for foreign issuers of securities.
6. Is ROKKEX compliant in both the U.S. and Estonia? In terms of regulations, will there be any duplication or conflict?
In regards to STO — yes, Rokkex is compliant with the regulations of both the U.S. and Estonia (as well as EU in general) as Rokkex is conducting its STO under the Reg D for the U.S. market and under various EU-wide and national regulations of Estonia for the European market.
In regards to activities of crypto exchange — as of this date, Rokkex has been only authorized by the Estonian Financial Intelligence Unit to provide the services of crypto exchange in EU. Rokkex hasn’t yet applied for specific authorization/licensing in the U.S., however, that is definitely in the plans of Rokkex for the nearest future.
7. Which digital securities can be purchased on ROKKEX in the future?
All companies who go under over ROKKEX STO platform will be listed: investors will be able to easily invest and get corresponding security tokens.
8. What kind of digital securities does ROKKEX would like to list? And what companies does ROKKEX prefer to work with?
All companies who can pass an internal Rokkex audit. We don’t want to list bad reputation products we take great care of our products and have mindset quality over quantity
9. Many people think that the biggest problem of digital security industry is the lack of liquidity. What do you think? As a leading trading platform Platform, how do ROKKEX solve this problem?
First of all, we need to bring back the trust in crypto in general: the cleansing of fake, scam ICOs, still unregulated, unclear IEOs and high volatility with BTC price manipulation have to end. Secondly, more education about digital securities is needed: small retail investors need to understand that there are alternative investment methods. Last but not least, strategic partnerships with liquidity providers, banks, and fintech companies that thinks and is future-oriented.
10. Is there anything else ROKKEX would like to share with Asian readers?
We have been flying back and forth to Asia: our CMO, Mindaugas Savickas has visited Shenzhen, Hong Kong, Shanghai, as well as 2 times Singapore together with other founders where ROKKEX also won the 3rd place in the Startup Pitch contest at Blockchain Life Asia 2019. We are very keen to expand beyond Europe, therefore, we feel that Asia is the next stop in 2020.
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