For the upcoming Security Token Offering (STO), Bitbond has now joined forces with solarisBank. In addition to a BaFin approval and the banking license of solarisBank, everything is now ready for the first German STO.
The era of Initial Coin Offerings (ICOs) seems to be drawing to a close. The big wave from 2017 has largely disappeared, only a few stable projects have been able to survive the hype so far. Based on the dot-com bubble of the late 1990s, one could say: Now begins the search for the needle in a haystack. But if you think that nothing works, the next investment vehicle is already in the starting blocks: Security Token Offerings – short: STO.
Because these promise more security. In contrast to the ICOs’ coins, they do not have to show any forward-looking (and often non-existent) use case, but stand for tokenized bonds. Bitbond is now the first company that has been authorized by BaFin to launch an STO.
Details about the STO
The crypto-credit company initially merged with solarisBank. As can be seen from the release, all token holders will receive quarterly variable bonuses and fixed annual distributions. The bitbond token also has a validity of ten years. This means that Bitbond is required to repurchase the BB1 tokens to its original value of $ 1.
You can buy the tokens now with Fiat currency, Stellar Lumens, Bitcoin and Ether. As the company further promises, all investors receive their own accounts, to which the company regularly pays the additional dividends.
Financing model of Bitbond
Anyone who manages to get into the first round of financing, according to the official website already beckons an investment advantage (which, of course, he gets distributed only after ten years). The staggering is as follows:
- 1st round of financing: 11.3. to 1.4. (or up to 1 million euros): 0.70 euros (30 percent discount)
- 2nd round of financing: 2.4. until 8.4. (or up to 3 million euros): 0.90 euros (10 percent discount)
- 3rd round of financing: 9.4. until 15.4. (or up to 5 million euros): 0.95 euros (5 percent discount)
- 4th round of financing: 16.4. until 22.4. (or up to 9 million euros): 0.97 euros (3 percent discount)
- Regular financing: 23.4. until 10.5. (or up to 100 million euros): 1.00 euros (regular price)
The annual interest rate that Bitbond promises is four percent – paid in the crypto currency Stellar Lumens (XLM). In addition, there is the variable payout of 60 percent of the company’s net profit.