ABOUT THIS EPISODE
This case study is an addendum to our security tokenization audio documentary, entitled "Tokenize The World," which has +100k downloads. If you haven't heard it yet, check it out at securitytokendocumentary.com.
About this episode:
In this case study, our guest Rob Nance from CityBlock capital is brutally honest about the arduous process of issuing his fund's NYCQ security token.
(Note: if he’d known from the outset how difficult the journey would have been, he might never have started... especially given the bear market, immaturity of legal precedent, etc.).
Here’s some real talk: I regularly hear people who have never actually issued a security token advising companies to tokenize. In fact, on at least 10 occasions, people have suggested that Nomics -- the company that runs and runs this podcast -- tokenize our equity (as if it were a simple process). Nothing could be further from the truth.
As far as I know, this is the first published end-to-end case study and deep dive on what it actually takes to tokenize.
This case study is broken up into three chapters:
- Chapter 1: Tokenized funds – what they are, how they work, and the benefits they provide.
- Chapter 2: The five steps required to launch a tokenized fund.
- Chapter 3: Rob’s take on what the future looks like.
In this episode we discuss:
- The five-step equity tokenization process
- Whether CityBlock could do its work without tokens
- The inspiration for CityBlock’s business model
- How capital deployment decisions are made
- What kind of information CityBlock provides in terms of disclosures to token holders
- The standard methodology for evaluating a privately held, venture-backed company
- What a tokenized fund is
- How to invest in a tokenized fund
- Why investors need to expect to wait at least three years to sell
- The difference between building the team, product, thesis, and pitch for a tokenized fund versus a non-tokenized fund
- The up-front costs of tokenizing
Our Sponsors:
Currency.com is the world’s first regulated tokenized securities exchange that allows you to use your Bitcoin or Ethereum holdings – and even fiat – to trade the world’s biggest markets through tokenized securities. Choose to trade with up to 100x leverage or buy and sell assets of your choice from over 200 tokenized securities. Crypto traders are able to trade traditional financial assets without putting their holdings under price pressure or exchanging to fiat. Of course, this is all possible with the security, trust, and precision of blockchain technology. It’s simple: trade with crypto, profit in crypto.
Sign up using our special link here.
Nomics’s Cryptocurrency Market Data API
The Nomics API offers squeaky clean and normalized primary source trade data offered through fast and modern endpoints. Instead of having to integrate with several exchange APIs of varying quality, you can get everything through one screaming fast fire hose. If you found that you or your developer have to spend too much time cleaning up and maintaining datasets, instead of identifying opportunities, or if you’re tired of interpolated data and want raw primary source trades delivered simply and consistently with top-notch support in SLAs, then check us out here.
