UK hedge fund group AK Jensen (AKJ) engages ICO Malta on security token tied to crypto ‘fund of funds’ for diversified exposure to crypto assets.
MALTA, May 12, 2018
ICO Malta’s full stack ICO launch platform has been chosen by AK Jensen (AKJ), the UK-based hedge fund group, for its security token offering (STO). The AKJ Token to be sold via the STO was designed by ICO Malta to offer investors participation in the growth of the new “AKJ Crypto” platform, with a share of net revenues generated on the platform, and from the appreciation of the platform’s correlated ‘fund of funds,’ going to token holders. Moreover, all crypto hedge funds that onboard with AKJ Crypto as their facilitator are offered discounted fees in exchange for holding AKJ Tokens, thus creating a second link between platform growth and token demand.
The AKJ Token STO stands out from the typical coin offering in that it is from an established, successful, and regulated financial institution. The project was conceived by the team that created the AKJ Hedge Fund Platform adopted by over 60 hedge funds, winning the HFM European Services ‘Best Hedge Fund Platform‘ Award in 2016 and 2017 and ‘Best Hedge Fund Platform – Emerging Funds‘ Award in 2018. The AKJ Crypto platform will offer a similar legal and regulatory solution for hedge funds trading in crypto assets.
The AKJ Token is a transferable security as per EU law. It offers the token issuer and its holders a post-ICO transfer-limitation smart contract component. This partially automates KYC compliance and prevents the token from becoming a bearer bond.
ICO Malta CEO Jan Sammut said “The token’s integration into the AKJ Crypto platform means that its value is tied directly to the success of the platform through the blockchain. Once crypto hedge funds on the AKJ Crypto platform begin producing revenues, the smart contract guarantees that the token will pay a portion of net revenues from the platform to token holders. The token also appreciates on the AKJ Crypto ‘fund of funds’. On top of those innovations, we designed a tokenomic structure that ensures a secondary market. Hedge funds on the platform are incentivized to hold the token itself.”
The AKJ Token represents a stake in the AKJ Crypto platform granted via an ERC20-compatible smart contract that offers holders these benefits:
- 25% share of all AKJ Crypto’s net revenues generated on the platform
- revenues from AKJ Crypto’s capital introduction programs
- access to capital appreciation from managed exposure to cryptocurrency
- funds holding 2% of their value in AKJ Tokens receive a 33% discount off AKJ’s annual fees
Sammut added, “A security token offering is the smartest way to tailor the economy of AKJ Crypto platform. The token design aligns the interest of all stakeholders in the ecosystem. It’s a kind of programmable share. The token provides direct payments of net revenues instead of dividends issued at the discretion of the board. Revenue sharing from infrastructure and trading fees, and from the capital introduction program in the form of the AKJ Crypto fund of funds, will be payable to AKJ Token holders’ wallets quarterly. The token can be bought and sold on any exchange that chooses to list it or directly through peer-to-peer transactions.”
ICO Malta evaluates each security token offering opportunity on five essential characteristics, all of which are clearly evident in the AKJ Crypto project:
- Decentralisation provides demonstrably superior outcomes compared to conventional technology.
- Real-world use case as manifested by institutional partnerships.
- End-user traction or a successful proof of concept trial.
- Robust consensus mechanism.
- Tokenomic modeling that properly and adequately aligns network incentive structures.