THE FUTURE TOKEN ENVIRONMENT
The EFRI team has been working in the cryptocurrency space since 2013 and currently closely cooperates with regulators, lawyers, and investors to address the challenges for the future of crypto-assets. With the ICO hype in 2017, Regulators started to work on regulatory frameworks for the issuance and trading of token as a new asset class. The current token environment will be challenged by 3 meta-trends for the next 6 to 36 months:
- Market Shakeout: Dead Tokens will disappear along with a litigation wave against issuers and
- Securitization of Tokens: Regulators such as the U.S. SEC already treat as securities (“Security Tokens”). In the future public token placements will be “Security Token Offerings (STO)” as successor Initial Public Offerings (IPO) with stocks.
- Tokenizing Securities: traditional securities such as stocks and bonds will be tokenized, stock exchanges will move towards blockchains.
That said, the overall assumption of the financial market is that the future of the financial markets is its tokenization. It may be expected that blue-chip stocks and penny stocks as well will be traded as tokens on stock exchanges within the next 3 to 5 years.
THE EFRI ANSWER
The EFRI FUND is designed to meet the meta-trends in the token space with a special focus on “Junk Tokens”. The EFRI FUND will tokenize its shares and have them traded as “Security Tokens” on regulated crypto-exchanges. Like traditional ETFs EFRI will offer its tokenized shares on the market in exchange against junk tokens and prime tokens.