Bitcoin Global News (BGN)
June 14, 2018 -- ADVFN Crypto NewsWire -- Today, the
Blockchain firm called Swarm announced what seemed to
be somewhat of a revolutionary step in Crypto investing.
Since their inception, Swarm or
Swarm Fund have identified themselves as the “Blockchain for
Private Equity.”
This doesn’t mean that they are
catering exclusively to venture capitalists. What it does
effectively mean is that the major part of what they have been
working towards is enabling almost anyone to invest in Blockchain
firms, through secondary markets.
To understand exactly what this
means, it is important to review what the Swam Fund is. At its
heart, it aims to be the Blockchain that makes investing accessible
to and easy for every sort of investor. On the main page of their
website, they mention “crypto investors, wealth investors, and
everyday investors,” as their primary user groups.
The primary benefit of the “Swarm
Chain” for Crypto investors is expressed as the fact that they can
use Swarm’s built-in AI to minimize the risk in their Crypto
portfolios, as well as eliminate the need for fiat.
For wealth investors, the main
benefit is said to be that they can avoid the traditionally lengthy
legal process that it is necessary to go through to make large
scale investments on the behalf of many customers at
once.
Finally, the primary benefit for
what are called everyday investors is stated as the fact that they
no longer have to be accredited. Perhaps even more importantly,
they are not required to have a very high net worth to access
excellent investment opportunities.
Overall, it’s first necessary to
make clear that Swarm does not advocate skirting the law and seems
to be stating that lengthy legal requirements are merely shortened
by the fact that they are providing a security token, which is already
regulated in some way.
Secondly, they emphasize four
features throughout their investment platform: joint ownership,
tradability and tokenization, and the overall feature of
empowerment of investors, as discussed above.
Here, under the category of
tradability, the Swarm development team has made sure to emphasize
that they will respect regulations, as well as laws. Under the
category of tokenization, they single out “fractional ownership” as
a key differentiator for their platform.
What fractional ownership seems to
mean is that several people can go in on an asset and own
percentages of it, which effectively leads to the announcement from
today.
Swarm will now be supporting what
they have defined as “equity tokens.”
Some of the first examples of these
tokens will be used as investment vehicles for Coinbase and
Ripple.
In explaining how this option came
about and how it works, Swarm reportedly said to Coin Desk that
they received these equity tokens in the form of vested options or
in the form of equity in the companies, from venture capital firms
who had already invested in them.
While Coinbase and Ripple are not
the only companies to be listed on Swarm in this fashion, they are,
perhaps, the most notable and they have pushed
back.
Ripple brass apparently denied
having any sort of conversation with Swarm on this subject and
Coinbase denied having given anyone the option to sell shares in
their company to secondary markets, such as the one Swarm is
offering.
On the other side of things,
according to an article by Coin Desk, there has been no evidence of
legal action taken against Swarm at this time.
With the news having been broken
today, as the situation plays out, investors will be able to see
just how serious Swarm’s latest offering is. Either way, it is
something that could move the Blockchain industry closer to being
able to offer the same and more as compared to the traditional
finance industry.
By: BGN Editorial Staff
News:
Blockchain
Swarm (SWM)
Cryptocurrency
Coinbase
Ripple
(XRP)