As of late, the FintekNews team has been absolutely deluged with press releases from firms from all over the planet doing Initial Coin Offerings (ICOs), and we have elected to refrain from coverage of most, because they are often too opague, and it is too difficult to discern what the underlying product or offering actually is.
We have also written extensively about the whole Initial Coin Offering movement, as clearly this new fundraising tool is completely transforming the way capital markets will operate in the future. In fact, in a recent piece, we reported that ICOs are now outpacing traditional venture seed capital in the US for funding. That said, we have seen some pretty “interesting” offerings. Bottom line is that investors have to really dig into each ICO offering – just as they would for any investment – to make sure they understand the validity of the offering and its potential value.
That’s where Swissborg enters.
SwissBorg is a Wealthtech startup founded in Lausanne, Switzerland, which is currently offering two ICOs. Many ICOs do not offer voting rights or ownership percentages to investors, but the Swissborg offerings will provide these through the Swiss C-Share program, one of the first programs in the world that is structured to offer ownership in the firm doing the ICO, plus voting rights, dividends and more.
Swissborg is also referred to as a DAO, short for “decentralized autonomous organization” (not to be confused with “The Dao” which is a separate & unrelated organization). The firm’s ambitious directive is to reshape the Swiss Private Banking system, serving both individual investors and institutions alike.
Swissborg endeavors to offer individuals democratic, transparent and trustworthy investment services to manage their crypto-wealth. Institutional Investment Managers and Financial Advisors will also gain access to the cryptocurrency asset class through the firm, integrating best-of-breed technologies (blockchain & artificial intelligence) to better serve their clients.
Here are the main highlights of the two offerings:
1) SwissBorg: the DAO that will issue the CHSB Token, which will give token holders voting and economic rights over the Swiss Cooperative. Token holders are also entitled to receive revenues generated by the DAO;
2) Cryptallion: The first product will be a Multi-Strategy Token Hedge Fund giving participants exposure to advanced investment strategies in cryptocurrencies with a competitive fee structure. The Cryptallion (CSB) Token will be 100% distributed to the network;
3) The Smart Mandate: An Investment Mandate encoded in a Smart Contract. Each client will have their own customizable, transparent Smart Mandate that will allow collaborating with several Financial Advisors. The Client will also be able to configure their banking requirements and investment strategies;
4) Cyborg Advisor: Sophisticated investment strategies with the best technological tools based on Artificial Intelligence algorithms, helping holistically manage clients’ assets with ease.
Additional information on the firm can be found on the Swissborg website, including:
- The Swissborg Team
- Extensive documentation
Including Essay, Technical Whitepaper, Presentation, Cryptallion Fact Sheet, One Page Summary & Risk Disclosure
- Swissborg Blog
Finally, when evaluating an investment through an Initial Coin Offering, investors should review the following checklist:
- Companies will need a proven existing business with revenues, leveraging blockchain technology, tokenization, encryption, and decentralization;
- The company should have an international team of advisors and employees should be a mix of experts in tech and business;
- Projects should be backed by a high quality board of advisors and endorsed by well-known institutional investors;
- The company needs a strong social media presence;
- The company needs strong blockchain partners;
- There needs to be understandable standards for valuation;
- There needs to be unbiased honesty & transparency on what will drive the token price on the market;
- Finally, the token should be linked to some type of legal entity, such as the C-Share program mentioned above, or another equally reliable structure.
To learn more about Swissborg & their Initial Coin Offerings, check out the following links:
Please note that the Swissborg offering is not available for investment in the United States.
Note: FintekNews does not provide investment advice and is not registered as an investment advisor with any financial regulatory agencies in the US or abroad. This sponsored post is for informational purposes only. Investors should research any investment thoroughly, and analyze all potential risks before investing. FintekNews bears no responsibility for any profits or losses that may be incurred by investing in this offering.