The Ecuador-based company, Viplecon, will integrate tokenized shares in blockchain (security tokens) into its system. In parallel, Viplecon will conduct an STO (Security Token Offering) to develop a Tokenized Shares Marketplace in Latin America.
The Ecuadorian company is dedicated to representing SMEs as well as large companies in Ecuador and offers its services of innovative solutions in the field of corporate law. Viplecon also manages blockchain technology and smart contracts.
For the tokenization of the shares, Viplecon will use the Waves blockchain network, a platform that allows its users to create their own and personalized tokens.. Viplecon’s choice of this platform is due to the low cost, scalability and non-fractionation of the currency. They will also issue a Security Token Offering, “Security Token Offering” in Spanish, which will use 10% of Viplecon’s capital to establish it.
According to one of the company’s representatives, exclusively for Cointelegraph Spanish, It took 60 days to complete the project and submit it to the Latin American country’s corporate, securities and insurance regulator; Validation successfully received under process number 101036-0041-21.
Creating an STO is consistent with fulfilling certain processes in order to efficiently achieve a result that meets expectations. These processes are first the creation of the project itself, then the characterization of the financial structure of the STO, then the implementation of the STO in the market, which previously had to be checked by external bodies, for example a broker. The stage of marketing and verifying that the assets are working properly begins.
In the case of the Ecuadorian company The basis of the project was the ship Act of February 28, 2020to transition to its legal framework within the laws of the Republic of Ecuador. In this sense, sOn October 29th we want to carry out the corresponding STO for the general public.
ICOs and STOs
In addition to the STOs, there are other concepts and processes that the financial world has developed in relation to cryptocurrencies, one example of which is the ICO (Initial Coin Offering); There is usually confusion between STOs and ICOs. The difference between the two concepts is that, according to Cointelegraph “ICOs offer a utility token (hence the term utility) for a specific platform or area. (..) STOs offer a security, a term that refers to a fungible and tradable security that has monetary value within the financial sector ”.
Regarding the legal regulations, “Some have raised ICOs as a future sale of a good, while others see it from the perspective of selling a right to access a particular space. All arguments do not want (…) to be seen as a value that can be regulated by strict legal regulations. ”While“ STOs cannot use the same legal argument as ICOs, since their concept itself is to offer a security as it is on the Investment market is regulated. This implies that STOs must meet the same requirements that a company that wants to go public would have to publish “, as explained by our Cointelegraph web portal.