50+ blockchain leading experts gathered in Shanghai - STO Global Fundraising Meetup was held on November 21st, 2018
On November 21st, co-hosted by FinTech4Good and Crypto Finance Lab, the STO Global Fundraising Meetup was held at Shanghai Xingdongli Center. As a part of the serial events of STO Council, this close-door meeting invited more than 50 blockchain industry experts and practitioners.
Xiaochen Zhang, President of FinTech4Good, together with Ming Qu , President of IDHub Foundation, Vice Chairman of Zhongguancun Blockchain Industry Alliance, Wu Qian, Co-Founder of the Crypto Finance Lab, Hailin Xie, Partner of Zhongchan Capital and Director of Shanghai Xingdongli, Chao Gao, Founder and CEO of ZOS and Lei Wang, Founder and CEO of Tweebaa gave keynote speeches and discussed emerging trends and challenges of STO as well as feasible practice of global fundraising.
Background: STO Council and Its Mission
Since 2018, the potential value of the Security Token Offering (STO) for the blockchain industry has been recognized by more and more organizations. STO not only enables blockchain projects to raise funds in compliance with applicable regulations, but also increases liquidity for private equity and long-term assets, removing intermediate links between companies, thereby reducing costs and increasing efficiency. However, STO is not applicable to all businesses. In order to meet the compliance requirements for different securities, investors are facing many restrictions on security token trading. At the same time, security tokens are not able to be traded due to compliance restrictions, thus greatly reducing its liquidity. Given that STO is a relatively new instrument in the market, there is still room for improvement in regulations, business practice and market performance.
Initiated by FinTech4Good, the STO Council was established under the Global Council of Token Economy. In the next few years, the STO Council aims to accomplish the following missions.
Joining hands with world-class experts and institutions, it will provide cross-sector services in communication, research, training and consulting. It will familiarize companies with concepts, regulations, procedures, instruments and success cases of STOs to help with their business decision making, to connect them with resources, and to provide necessary support in the entire process of STO. Additionally, it will also provide capacity building for companies during the post-STO phase, including effective communication, compliance check, as well as achieving liquidity.
STO Series: STO China Council Briefings
In the first preparatory meeting, STO China Council was set up to help Chinese companies understand STO tools and support Chinese enterprises to achieve industrial upgrading and their global expansion through blockchain technology. Following the preparatory meeting, leading industry experts were invited to local briefings in multiple cities and invited for discussion on the preparation for STO China Council, including the work plan of STO Council in 2019, the STO Academy curriculum and the recruitment of STO Council members. Here as below was the schedule for the local briefings.
- Hangzhou, November 18, 2018
- Shanghai, November 21, 2018
- Shenzhen, November 23, 2018
- Beijing, November 25, 2018
STO Global Fundraising Meetup in Shanghai
Co-hosted by FinTech4Good and the Crypto Finance Lab, the STO Global Fundraising Meetup was held at Shanghai Xingdongli Center on November 21st, 2018.
STO Global Financing Private Club • Shanghai Station Conference Site
Xiaochen Zhang, President of FinTech4Good, gave a keynote speech on STO Academy and Security Token Fund. He drew on an analogy between blockchain and internet innovation, and pointed out that blockchain technology can transform the business practice of existing industries and provide an innovative fundraising mechanism. He also highlighted the that the essential difference between STO and ICO lies in the compliance of STO.
Zhang Xiaochen, Founder of FinTech4Good
Qu Ming, Chairman of IDHub Foundation and Vice Chairman of the Zhongguancun Blockchain Industry Alliance, shared the plan of ATLAS Fund plan to embrace the new global fundraising model. He stated that the market is still exploring more efficient and convenient global fundraising practice after many ICO projects collapsed, and that compliance has become an integral part of STO. Mr. Qu also pointed out that STO can quickly achieve compliance, reduce issuance costs, divide up assets ownership, as well as increase capital liquidity and market depth.
Qu Ming, Chairman of the IDHub Foundation and Vice Chairman of the Zhongguancun Blockchain Industry Alliance
Ms. Wu Qian, Co-founder of Crypto Finance Lab, stated that 2018 was a landmark year for global investment. As a new and compliant model, STO offers an alternative to the global market that was dominated by traditional securities. It strikes the balance between effective regulation and financial innovation.
Wu Qian, Co-founder of Crypto Finance Lab
Hailin Xie, Partner of Zhongchan Capital and Director of Shanghai Xingdongli, mentioned that traditional financial institutions and intermediaries are becoming less relevant in the STO market. Instead, young talents who are passionate about blockchain innovation are needed. Shanghai Xingdongli is committed to hosting more meetings on STO and building a platform where industry leaders can communicate and interact with each other, in order to support young professionals.
Mr. Hailin Xie, Partner of Zhongchan Capital and Director of Shanghai Xingdongli
How will blockchain transform traditional finance? What is the future of finance? Mr. Chao Gao, Founder and CEO of ZOS shared his views on the global lending practice. He believed that the integration of blockchain into the existing finance sector would lead the future trend and that blockchain-backed finance would drive the change in disintermediation, asset digitization, global financing and investing, as well as smart lending. Financial institutions will benefit from these opportunities to upgrade their lending business.
Chao Gao, Founder and CEO of ZOS
Lei Wang, Founder and CEO of Tweebaa, spoke about how to build up an ecosystem that supports the monetization of potential values from her experience of leading the start-up. She believes that everyone has their own value that has not yet to be discovered and shared her views on how to explore and monetize it. She also highlighted that, by doing so, everyone can realize their profit potentials even if they do not have resources in products, channels, sales capabilities, and capital investment.
Lei Wang, Founder and CEO of Tweebaa
STO Academy Course and STO Handbook Introduction
Led by FinTech4Good, STO Academy has launched a series of research reports and courses on STO. The STO Jungle Book introduces the basic concepts, applicable regulations, and issuance processes
The STO Academy has started the invitation recommendation process internally. Throughout five days of training, members of the Academy will be able to interact with leading experts in the United States and learn about current status of STO, as well as all the entire ecosystem, including STO platforms, secondary trading practice, and companies that have already issued security tokens successfully. (STO Academy will only accept internal recommendation before December 1st).
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