Water on the Blockchain: Austria launches first Security Token Offering
Austria achieves the breakthrough in the area of Security Token Offerings. The Austrian Financial Market Authority (FMA) approved the capital market prospectus of Hydrominer IT-Services GmbH on 26 November. According to the prospectus, the security token can be used to trade profit participation rights for H3O worth up to 75 million euros.
The STOs are not unlike the Bitcoin code
Now that the Bitcoin code funding model has come under increasing criticism, security token offerings should be the next promising investment opportunity. Just a little more secure. With security tokens, companies can issue tokens that can be compared to shares. In contrast to the ICO, investors have ownership rights here. This is not the case with utility tokens (which are distributed with ICOs). The functions and output of the tokens are controlled by a block chain using Smart Contracts. The tokens stored on the block chain ultimately represent the rights of the token owners in the respective company.
Now an Austrian company is breaking new ground in this field. According to a press release of the law firm Stadler Völkel, which is available to BTC-ECHO, the company is the first in the European Union to carry out an STO.
Details on the Bitcoin code Security Token Offering by Hydrominer
The corresponding Hydrominer Bitcoin code tokens are called H30 tokens and secure “qualified subordinated profit participation rights” for the holders: “Holders of Bitcoin code tokens have […] the right to actively participate in Hydrominer’s business decisions. This right of participation [goes] beyond that of shareholders and allows investors to actively participate in decision-making processes. In addition, the Securities Terms provide for a kind of co-sale right in the event that a qualified majority of the owners of Hydrominer sell their shares”.
In addition, the H3O tokens serve as a key to identify themselves to Hydrominer as security holders. This applies to the payout as well as to the exercise of the rights of codetermination associated with the H3O token.
Hydrominer already carried out an ICO last year – with the H2O token one could invest in primarily environmentally friendly Bitcoin mining. The associated tokens then stand for Bitcoin Mining time units.
The H3O security token is therefore a novelty on the crypto market. Hydrominer’s legal department is therefore very pleased with the results:
“With the approval of what is probably the first capital market prospectus for a security token offering within the EU, we have not only set a milestone for the industry, but also for Austria as a business location. We are particularly pleased that we can continuously advise on the legal fine-tuning of blockchain application forms and enjoy the trust of the community as a highly specialised partner in the blockchain sector, explains Arthur Stadler, Stadler Völkel Attorneys at Law.
Subscription is possible from 1 February 2019. The offer will be made exclusively in Austria and Germany on the basis of the capital market prospectus approved on 26 November 2018, which can be found on Hydrominer’s website.