Neufund Closes STO Platform as BaFin's Stand Remains Unclear
- The company will now focus on the development of a new product.
Neufund, Berlin-based Security Token Security Token Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Read this Term startup, has announced that it is suspending its fundraising campaign and also putting aside its token offering project, citing regulatory uncertainties.
“After countless meetings between entrepreneurs with politicians and financial authorities it became clear that while there are high demand and opportunity for this type of change, the authorities have stifled this plan, blocking the innovation in its tracks,” the company wrote.
Zoe Adamovicz, co-founder and CEO of the company, admitted that security token offering platforms are operating in a regulatory grey area. This put them under a major risk of a sudden crackdown.
Though, according to Adamovicz, Neufund was never at the end of any regulatory action, the company is taking the harsh decision to protect the future of its business as the regulators shy away from responding upon the firm’s request for guidance mentioning “fear of new technologies.”
Nefund was launched in 2016 and helped companies raising around $19 million through equity and security token offerings (STO). Last year, the company also helped a company in a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based initial public offering (IPO).
Regulators are neither showing a green nor red light
“The barriers built by regulators reinforced with the lack of dialog, especially during the current economic and social situation made us review our product roadmap and the platform’s future,” the company stated.
“Today we announce that we’ve decided to pivot, put aside our Equity Token Offering project, and pause upcoming fundraising campaigns.”
The company mentioned that it will allocate its “time and resources” in the development of a new product, but did not provide any details of that.
“We are hopeful with the launch of our new product, that we will open new opportunities and continue bringing value to our investors and community,” Neufund added.
Neufund, Berlin-based Security Token Security Token Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Read this Term startup, has announced that it is suspending its fundraising campaign and also putting aside its token offering project, citing regulatory uncertainties.
“After countless meetings between entrepreneurs with politicians and financial authorities it became clear that while there are high demand and opportunity for this type of change, the authorities have stifled this plan, blocking the innovation in its tracks,” the company wrote.
Zoe Adamovicz, co-founder and CEO of the company, admitted that security token offering platforms are operating in a regulatory grey area. This put them under a major risk of a sudden crackdown.
Though, according to Adamovicz, Neufund was never at the end of any regulatory action, the company is taking the harsh decision to protect the future of its business as the regulators shy away from responding upon the firm’s request for guidance mentioning “fear of new technologies.”
Nefund was launched in 2016 and helped companies raising around $19 million through equity and security token offerings (STO). Last year, the company also helped a company in a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based initial public offering (IPO).
Regulators are neither showing a green nor red light
“The barriers built by regulators reinforced with the lack of dialog, especially during the current economic and social situation made us review our product roadmap and the platform’s future,” the company stated.
“Today we announce that we’ve decided to pivot, put aside our Equity Token Offering project, and pause upcoming fundraising campaigns.”
The company mentioned that it will allocate its “time and resources” in the development of a new product, but did not provide any details of that.
“We are hopeful with the launch of our new product, that we will open new opportunities and continue bringing value to our investors and community,” Neufund added.