New Indiegogo Campaign Is A Real Estate-Backed Security Token (Aspen Coin)
Crowdfunding firm Indiegogo is promoting the sale of a new asset-backed digital token, the company’s website shows.
Accredited investors can buy Aspen Coins, which represent fractional ownership of the property according to the Indiegogo listing as shown below.
According to the website, the real estate-backed token will allow accredited investors the chance to buy shares of the St. Regis Aspen hotel using digital tokens. The tokens, Aspen Coins, will be issued by a real estate investment trust (REIT) identified as Aspen Digital.
Aspen Digital has partnered cryptocurrency brokerage firm Templum in this venture. It is a first of its kind in that investors will indirectly own an equity stake in St Regis resort by owning such a stake in Aspen Digital, which will handle the securities token sale.
Investors can buy the new digital tokens using the U.S dollar as well as through cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
For accredited investors who wish to buy the Aspen Coins, you can go to Templum Markets for the on-boarding process before completing the buying process. However, investors must comply with applicable regulations to ensure they stay within SEC guidelines.
The firm has revealed that the coin is already registered with the U.S. Securities and Exchange Commission (SEC) and that it hopes to raise $18 million of investment for the hotel.
However, Indiegogo will not take any particularly active role in the use of the funds. That will be done by Aspen Digital, with Indiegogo expected to actively promote the project on its website’s landing page.
According to co-founder Slava Rubin, Indiegogo has been working on this token sale for a while.
Rubin said that the idea to have such a token goes back to the beginning when their vision was to democratize the issue of access to capital. Their goal was to bring investment opportunities to every person around the world.
The new asset-backed approach to token offerings comes at a time when there is increased scrutiny on ICOs and tokens from the SEC.
Indiegogo believes that following regulations as developed by government agencies reduce the chances of running into problems with the agencies.
According to Rubin, Indiegogo’s CEO, there is a very big difference between cryptocurrencies and security-backed tokens. He believes hard assets, unlike crypto, are less speculative. Furthermore, these asset-backed tokens are “likely to pan out in the future.”
Indiegogo was founded in 2008 and is among the very first websites to offer crowdfunding. It allows the public to make investments as well as to solicit for funds in aid of ideas, charities, and startups.
The company announced its first initial coin offering (ICO) in December 2017, at the time going on to state that the token sale was successful.
It charges a 5 percent fee on all contributions. There is also a payment processing fee pegged at between 3 and 5 percent, depending on the payment processor.