Bitbond — First fully complied and regulated STO in EU

Every business owner knows that one of the biggest risks to owning and starting your own business is the financial risk. With almost half of new businesses failing because they lack of funding is abrupt. The 5-year crucial period that having adequate funding for every business or start-up to continue their development is critical for success. If you don’t have the resources to personally fund the business, you might need to consider raising financing to ensure that you don’t have to cut corners on operations or marketing. 

The Problem

• Small and medium business owners often can’t get loans from the banks because of higher default rate (up to 13%)
• Funding Gap/Limitations
• Loan transfers are slow, costly and siloed making funding not truly global
• Small to medium businesses are often held back and not given much priority limiting large businesses only to succeed.

Introducing Bitbond,

 Bitbond is the first global business lending platform. 

Is a blockchain science corporation has simply long gone in advance to announce their very first Security Token Offering; this is the STO, this is with the securities prospectus that has been permitted through the BaFin. Bitbond has been regarded to be the first inside Germany that has been capable to problem the protection token that is comprehensively regulated. 

The Solution Bitbond would bring

• Connect borrowers and lenders by implementing fast and low cost blockchain-based platform for SME loans that is fully regulated by BaFin so users on both parties (borrowers and lenders) are safe.
• Lower default rate by using Machine learning based risk-assessment
• Simple, quicker and cheaper processes.
• Using the blockchain for instant funding
• Truly Global loans without restriction on any countries or regions
• Contracts would be Smart Contract that is easily audited

What is BaFin?

The Federal Financial Supervisory Authority better known by its abbreviation BaFin is the financial regulatory authority for Germany. It is an independent federal institution with headquarters in Bonn and Frankfurt and falls under the supervision of the Federal Ministry of Finance.

The main task of BaFin is the supervision of banks, insurance companies and the trading of securities and ensure the viability, integrity and stability of the German financial system.

To maintain the integrity and stability of the financial system and combat money laundering BaFin is obliged, under the Banking Act, to run a centralized computer system that stores information on all accounts and their account holders. This information must be provided to BaFin by all financial institutions in Germany. 

What is STO?

STO stands for security token offering. It is a process similar to an ICO where an investor exchanges money for coins or tokens representing their investment. However, unlike ICOs, STO’s take it a step further and distribute tokens that fall under the status of securities. They are linked to an underlying investment asset in a way like stocks, bonds, real estate investment trusts (REIT) or other funds.

What is Bitbond?

The Bitbond Token (BB1) is Germany’s first security token and expects to make business advancing globally open. Bitbond is the main computerized cash based crediting stage for business propels that works universally. Set up in 2013, Bitbond now empowers more than $1 million in business credits every month. The underwriter of the token is Bitbond Finance GmbH, an association totally asserted by Bitbond GmbH. Token holders will get 1% eagerness on their contributed whole each quarter (4% consistently). 

Besides, token holders get a variable coupon paid out once consistently. Both the quarterly and the yearly coupons continue for quite a while, thus, with everything taken into account the token accomplishes its improvement and is repurchased at its expected worth of €1 per token. If you have to misuse the cutoff points, we encourage you to contribute on March eleventh, 2019 as breaking points will be administered on a first begun things out serve premise.

In order to give the best understanding, Germany’s first security token will be issued on the Stellar blockchain. With a planning point of confinement of in excess of 1,000 trades for consistently, trade costs at a little measure of a penny, a verifiable decentralized exchange and an overall arrangement of dynamic assistants using the stage, Stellar is a champion among the best blockchains for portion taking care of and token issuance.

Bitbond makes salary by charging begin costs to borrowers and repayment charges to budgetary experts. The begin charges stretch out from 2–3% of the development total. The repayment cost ranges from 0.5–1.5% of the total repayments. 

Refer Bitbond calculator for potential investment value :
https://www.bitbondsto.com/calculator

Experience & Partners

Bitbond was founded in 2013 meaning it has 6 years of business experience. Additionally, Bitbond & the Bitbond STO has some key partners and business relationships. 

Some of their notable partners on different classifications making them have an easier transition to specific domains like :

solarisBank : is a Berlin-based fintech company that offers Banking as a Platform services with its German banking license.

KYC-Chain : is a state of the art KYC management tool that provides a suite of features designed to make client onboarding as easy and intuitive as possible. This could help them to have an easier customer KYC process because KYC-Chain would take care of it.

Jumia : is an e-commerce platform for electronics, fashion, and more. The platform consists of a marketplace, which connects sellers with consumers; a logistics service, which enables the shipment and delivery of packages from sellers to consumers; and a payment service, which facilitates transactions among participants active and Jumia’s platform in selected markets.

Stripe : Provides the technical, fraud prevention, and banking infrastructure required to operate online payment systems.

And many more… 

Key STO information

• Germany based Bitbond has been operating since 2013 as a regulated financial institution
• Existing product: yes, Bitbond business lending platform
• Existing users: yes, 150,000+ (mostly Europe and Africa), over EUR 13 million business loans already facilitated
• STO purpose: fund business loans of entrepreneurs worldwide
• Pre-sale: March 11th — April 22nd over EUR 2 million raised
• Main-Sale: until July 8th 2019
• Token name: BB1
• Token value: 1 BB1 = 1.00 EUR
• Token type: security token, bond
• Returns: quarterly interest payments (coupon) and yearly profit participation
• Maturity: 10 years, after which all BB1 tokens will be bought back for 1 EUR per token
• Secondary market: Stellar Decentralized Exchange (SDEX, access via Stellarport or stellarX) and first tier centralized crypto exchanges (agreement signed, announcement forthcoming)
• Underlying assets: business loans
• Who can invest: anyone with the exception of US and Canadian residents
• What makes it special:
   — First German STO with an approved prospectus
   — Generates quarterly passive income for the token holder over 10 years
   — Bitbond buys back all tokens at the end of the maturity
   — Proven service with over EUR 13 million in loans issued

Team

Over the years when clients and friends asked our crypto company for investment advice in cryptocurrency, the first thing we point to them is to look at the background and experience of the team handling the project. No compromise about that. You can’t entrust your hard earned cash to a complete stranger over the internet without knowing what his capabilities are. With Bitbond, a few thing I can say about the team is that it more than worth your money entrusting your funds to the team. 

The team has a lot of experience in finance and technology including cryptocurrency. To mention, the Founder & CEO Radoslav Albertcht have been in many fintech/crypto events already, you could watch some of his pitch introducing Bitbond on Youtube. 

CONCLUSION

Being in the crypto sphere for quite a long time since 2017, I have seen the fall down of ICO which comes the birth of STO to protect investors and the community for a sudden downfall. For those who didn’t know, STO is one of the safest way when investing because it guarantees a stable and secure type of investment. Aside from that, the product that is given by Bitbond, creating a P2P lending platform for small-medium scale business which is the main problem of most economies anywhere in the world, to develop and give a chance for new and bright ideas, I think Bitbond is the opportunity we all looking for in terms of investments and usage. No bias, I support this project since the very beginning and would continue to do so. 

 

For more information about Bitbond kindly visit these links below:

• Bitbond STO website
• Prospectus
• Lightpaper
• BitcoinTalk Ann Thread
• Twitter Page
• Official Telegram Group for investors
• Facebook Page
• YouTube channel
• Instagram page

Affiliate Link : https://www.bitbondsto.com/?a=IVYCQX