Posted 1 year ago | by Ben Armstrong
Ethereum-based Digital Art Platform ArtID Launches STO
ArtID is working to raise 5 million euros via an STO. A Security Token Offering (STO) is a way for the company to raise money for development, and also offer investors something tangible in return for their funds.
Unlike most tokens, which don't have an inherent value, a security token acts as a securitized form of an underlying asset. This gives a security token an inherent value, which makes them much more attractive to mainstream investment.
Investors who keep the platform's security tokens will have the right to access the company’s earnings. The offering aims to extend one million euros in a public offering and four million euros in a private offering.
ArtID is Raising Money
More than 1,000 artworks have already been kept on active digital artwork platform ArtID. Also, the company estimates over 6,000 artistic and limited edition photographs have been protected by ArtID.
The platform's adviser is global financial company Kreston RS. Luxembourg-based tokenized investment platform STOKR is organizing the supply of tokens.
Artworks that were checked and authorized on the chain can be bought and sold, as long as those transactions are legal, according to Stefano De Nart, the pinnacle of Kreston RS’ financial department.
De Nart also claimed that the platform had raised a substantial amount of funding, which is impressive, given the present financial landscape. Even with the global economy in shambles, ArtID still is able to grow.
Blockchain Makes STs Possible
Many people believe that blockchain technology has the ability to keep track of unique items, and with the Ethereum blockchain, ArtID is making that potential come to life. ArtID is clearly well-supported and has been able to raise money in one of the worst times for development in recent history.
Security Token Offerings (STOs) are an incredible new way to securitize assets that would not be able to be easily traded otherwise. In addition to allowing the securitization of unique assets, STOs can also be used to trade existing assets, like shares or bonds.
The market for STOs is large, and they can be used to replace existing exchanges, and allow smaller investors to enter markets that would be difficult to trade in under the existing financial system. STOs offer direct ownership over assets and don't require that a broker or exchange be involved with a transaction.
ArtID is demonstrating that STs have a place in the world of fine art, and also that STs are a viable way to trade in valuable property. As ST technology matures, it is likely that STs will be used for many other assets.