Indiegogo Enters Real Estate Crypto Market
August 27, 2018 1:52 pm
Indiegogo Inc., the crowdfunding company has announced that it plans to buy shares of a hotel through crypto tokens. The Hotel is St. Regis Aspen Resort located in Colorado. The resort is issuing Aspen coins through Aspen Digital Inc. As these coins are aimed at investment, they are treated as security tokens. These tokens are supposed to replace physical certificates of equity. As per United States Regulation D Rule 506(c), only accredited investors can participate in the sale.
“Security token offerings are the investment tool of the future, a mechanism designed to store wealth by utilizing income-producing digital assets,” Stephane de Baets, Founder and President, Elevated Returns.
Stephane said “Security token offerings are the investment tool of the future, a mechanism designed to store wealth by utilizing income-producing digital assets,”. Notably, Elevated Returns had purchased the St. Regis resort back in 2010.
This move will allow access to traditional assets like real estate to a wider audience. This service was previously accessible only to high-net-worth individuals and private investors. Indegogo’s trust and influence will help them gain a global audience.
Templum Markets LLC, a registered broker-dealer will be offering the Aspen tokens. This firm is authorized by the Securities and Exchange Commission (SEC) and is also a member of the Financial Regulatory Authority.
This event is being considered as an Initial Coin Offering (ICO) while in reality, they are private securities that are designed for investors.
The tokens are priced at $1 each with each individual requiring a minimum investment of $10,000. The total offering size is estimated to be $18 million. The sale will be closed on September 14, 2018. Users can purchase these tokens using US Dollars, Bitcoin or Ethereum.
The tokens are to be used as an investment instrument and they provide no further utility to its users. These tokens can be traded for other cryptocurrencies and can also be stored in digital wallets.
Indiegogo aims to connect digital tokens with physical assets. A move that will allow it to differentiate it from other ICOs that are currently flooding the market.