$18 Million Successfully Raised for Indiegogo’s First Security Token ICO

10 October 2018

Image for post
Image for post

The $18 million investment from various investors marked the successful completion of the first security token ICO hosted on Indiegogo’s platform.

According to the announcement on Tuesday, accredited investors had bought all the St Regis Aspen Resort coins made available through the sale.

Unlike the utility ICO tokens which reportedly serve as products or service coupons, the security tokens serve as investment contracts. Each Aspen Coin practically represents a share in a single asset REIT (Real estate investment trust) that’s worth $18 million of Aspen Equity gathered through the resort’s ICO/ STO. This sale was restricted to only accredited buyers due to the SEC restriction on securities offerings.

According to the director of Elevated Returns, Jason Kirschenbaum, the Aspen Digital closing has deep implications beyond the introduction of a new asset-backed coin. The deal also develops a blueprint for the future tokenization of real estate. Jason further added that the future of investing in real estate rests in global exposure, public access, liquidity and transparency, all factors that can only be delivered using the blockchain technology.

While it was built according to the ERC-20 token standards, the token was availed through the Indiegogo platform in partnership with the SEC and FINRA-registered operator, Templum Markets. Aspen’s coins can be stored in any Ethereum wallet, but investors seeking to trade these security tokens must use Templum’s ATS (alternative trading system) to avoid contradicting the federal securities regulations.

In an interview earlier this year, the co-founder of Indiegogo, Slava Rubin revealed that crypto-based crowd-funding is part of the firm’s natural extension. According to Rubin, the demand and potential of tokenized securities are on the rise due to the various advantages that digital ownership offers on the blockchain technology, compared to legacy investments. For this reason, tech-savvy investors are starting to realize the value in real time.

Previously, Indiegogo hosted a utility ICO token through a partnership with Micro Ventures, a licensed broker-dealer. However, Micro Ventures was quick to cancel the deal after its end, returning all the investments to the contributors. The broker-dealer cited regulatory concerns as the reason behind the move.

Written by

CryptoBrowser.io — the latest blockchain news, ICOs, IEOs, crypto analysis, DApps, crypto events, leading STO advisors and crypto companies — all in your hands.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store