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02/02
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Andrew “Drew” Hinkes Creates a New Gradation of Security Tokens Andrew “Drew” Hinkes Creates a New Gradation of Security Tokens

The general consultant of Athena Blockchain Andrew “Drew” Hinkes believes that the crypto slang created on the background of the insanity of ICO 2017 just got away.

According to US law, there is such a type of tokens as security. To maximize the use of this financial tool, Blockchain Capital, attracting $10 million in 2017, created a “tokenized VC fund” and released such kind of tokens.

This was the beginning of a real wave of tokenized securities that are legally compatible with cryptocurrency and stock markets. The advantage of this, of course, is greater demand and liquidity of investments. Thus, some aspects of automation will increase their value for both issuers and buyers.

Due to this, Hinkes offered a more accurate verbal setting of the position of tokenized securities for a clear understanding of the type of these securities and the rights that are presented by issuers to their customers. This will make it possible to understand why the tokenization of security tokens will make them more useful, more competitive, and also improve other characteristics.

The author of the material criticizes the position of STO, considering that it’s not flexible enough. On the one hand, the required standards are observed, but on the other hand, the term “STO” does not explain all the nuances of the differences between the types of securities that will be sold as tokens.

Types of tokens according to Andrew “Drew” Hinkes

  • SICO – utility tokens or the legacy of the ICO era

  • TED – traditional securities, for example, digital version of stocks

  • TABS – securities secured by assets

  • TSI – assets that have the characteristics of securities, issued in the form of tokens and can be redeemed or accepted by the issuer when exchanging directly for goods and services.

Yes, the smartest minds work in Athena Blockchain, but whether the new classification will be accepted is still unclear. But we know for sure that our ATB Coin meets all legal norms and can operate in the modern financial market.