Blockchain and Water: Austria launches first security token offering

Hello dear readers,

in this post I would like to share news about the first Austrian security token offering with you.

Austria makes breakthrough in security token offerings. The Austrian Financial Market Authority (FMA) approved the capital market prospectus of Hydrominer IT-Services GmbH on 26 November. According to this, the security token can be used to trade in profit participation rights for H3O worth up to 75 million euros.

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After the funding model ICO is more and more criticized, security token offerings should be the next promising investment opportunity. The STOs are not dissimilar to the ICOs. Just a little bit safer. With security tokens, companies can issue tokens that can be compared to stocks. In contrast to the ICO, investors are entitled to property rights here. This is not the case for utility tokens (distributed with ICOs). The functions and output of the tokens are controlled by a blockchain using smart contracts. The tokens stored on the blockchain ultimately represent the rights of the token holders of the respective company.

After the funding model ICO is more and more criticized, security token offerings should be the next promising investment opportunity. The STOs are not dissimilar to the ICOs. Just a little bit safer. With security tokens, companies can issue tokens that can be compared to stocks. In contrast to the ICO, investors are entitled to property rights here. This is not the case for utility tokens (distributed with ICOs). The functions and output of the tokens are controlled by a blockchain using smart contracts. The tokens stored on the blockchain ultimately represent the rights of the token holders of the respective company.

Now an Austrian company enters this new territory. According to a press release by the law firm Stadler Völkel, which is part of BTC-ECHO, the company is the first in the European Union to carry out an STO.

Security Token Offering Details from Hydrominer
The corresponding tokens from Hydrominer are called H30 tokens and assure the holders "qualified subordinated profit participation rights":

"Holders of H3O tokens continue to have the right to actively shape business decisions by Hydrominer. This right to vote [goes] beyond that of shareholders and allows investors to participate actively in decision-making processes. In addition, the securities conditions provide for a sort of right of co-sale in the event that a qualified majority of the owners of Hydrominer sell their shares. "

Furthermore, the H3O tokens serve as a key to identify yourself to Hydrominer as a security holder. This applies to the payout as well as the exercise of the H3O token associated voice rights.

Hydrominer already carried out an ICO last year - with the H2O token being able to invest primarily in environmentally friendly bitcoin mining. The associated tokens then stand for Bitcoin mining time units.

The H3O security token is therefore a novelty on the crypto market. Accordingly, the Legal Department of Hydrominer says:

"By approving the first capital market prospectus for security token offering within the EU, we not only set a milestone for the industry, but also for Austria as a business location. In particular, we are pleased that we can constantly advise on the legal fine-tuning of blockchain application forms and enjoy the confidence within the community as a highly specialized partner in the blockchain field. "- explains Stadler Völkel Rechtsanwälte, Arthur Stadler.

A subscription is possible from 1 February 2019. The offer is made exclusively in Austria and Germany on the basis of the Capital Market Prospectus approved on 26 November 2018, which can be found on the Hydrominer website.

This is a translation and here you can find the original article in German: https://www.btc-echo.de/wasser-auf-der-blockchain-oesterreich-startet-erstes-security-token-offering/

Greetings and hear you in my next article.

Michael Thomale - @michael.thomale