The STO market is expanding fast, albeit from a low base. There were two STOs in 2017, 25 in 2018, with 87 projected in 2019, according to Autonomous Research (https://www.bloomberg.com/news/articles/2019-02-11/why-security-tokens-are-crypto-for-the-already-rich-quicktake). The total value of the security token market will reach to $2 trillion by 2030, said Chain Partners (https://www.finyear.com/attachment/1338789/) research.
In view of the current inefficiencies of capital markets, the relevant question to be asked is clear - will digital assets replace traditional equity?There are several factors that confirm this. The costs of STO`s are half of IPO’s. Trading fees of digital shares are significantly lower than in traditional markets, e.g. 0.1% - 0.25% compared to 0.5 - 3%.Over-regulation and too many middlemen have become the general trend, making it very difficult for fund managers to outperform benchmarks.Corporate actions like stock splits, voting and dividend policies can be automated in security tokens allowing an annual cost saving of 10Bn USD. Therefore, it is inevitable that the streamlined, cost-effective and automated route of digital assets will replace the current inefficient and expensive capital market model.
The Company was established to create a comprehensive financial services infrastructure solution for the underbanked MEA region market, leveraging modern blockchain/distributed ledger technology to create a vertically integrated full-service infrastructure for commercial and investment banking services. The company remains a global company with an African & Middle East -region focus which allows for a monopoly market. MOBU intends to open an office in Silicon Valley with the next funding round and already have an engagement letter with a large Investment Bank from USA to underwrite MOBU at a much higher valuation. Considering the valuations of Investment Banks around the world and their inefficiencies allows for enormous upside for this investment opportunity with the help of modern technology.
Capital markets are inefficient characterized by high fees, over regulation, too many middlemen and slow transaction times. There is no crowdfunding platform worth mentioning for the second largest continent of the world and most international crowdfunding sites don`t list African companies. Africa`s leading cryptocurrency exchange called Luno charges very high fees and only offers BTC and ETH. Very few people around the world know how to launch a security token offering let alone how to market it to investors.
Only 34% of adults in sub-Saharan Africa have bank accounts or access to formal financial services, even after banks have been in Africa for 50 years. Furthermore, the African continent currently receives less than 1% of global venture capital deal flow but consists of 30% of the world's natural resources and 60% of arable land. No credit card solution exists for digital assets for the second largest continent of the world.
MOBU has a strong position in a high growth region and has the potential to take over the cryptocurrency market in Africa.
MOBU will develop a full-service platform which will provide the following functions:
Security tokens/regulated digital assets have the same legal rights as a share certificate and allows for better corporate efficiency. Digitizing private placement issuance has a 40% cost saving over 5 year period - Entoro Capital.
It is expected that blockchain technology will be 10% of global GDP by 2027 according to Deloitte, and since MOBU is developing the full infrastructure solution for the next generation of assets or regulated digital assets, there is enormous upside potential. Security tokens or regulated digital assets are simply more efficient than traditional markets.
MOBU has serious expressed interest and engagement letter from a well known US based Investment Bank to underwrite MOBU for a much larger capital raise once the platform is live. This small funding round is simply to get the company operational and profitable to ensure we will close the next much larger funding round. The founders have invested most funds to date to get development and licenses at the current stage which benefits any investor.
Key Competitors in Africa:
Luno: Only offers ETH and BTC. No debit card solution for digital assets. Very high fees. but 5m USD daily trading volume.
Thundafund: The biggest crowdfunding platform in Africa very poorly constructed allowing any company to list and have no database or way of connecting entrepeneurs to investors.
MOBU can be seen as Bnktothefuture, Tzero/OpenfinanceNetwork and Revolut combined.
The cost of business is considerably less in Africa allowing for low overheads
Any equity investor will automatically receive mobu tokens as bonus/donation which has the same features as Huobi and Binance. Binance token price went from 0.15 USD to 36 USD due to how they are used.
MOBU INTENDS TO REPLACE GLOBAL STOCK MARKETS AND REINVENT CAPITAL MARKETS!
Licenses acquired and prototypes developed. Sound understanding of global security laws and digital assets. Strong social media followingApril, 2019