ICO Launch Malta’s ICO Platform Chosen for CFX Security Token Offering
MALTA, Oct 22, 2018
CFX Advanced Ltd. has chosen ICO Malta’s turnkey ICO platform for the issuance of its CFX Token via a security token offering (STO). ICO Malta developed the CFX Token as a bespoke security token protocol whilst maintaining the ERC20 technical standard. The CFZ token features custom cryptographic functionality for the integration of vesting periods, dividend payments, and shareholder voting functionalities at a protocol level. In a technological first, a smart contract governs these functionalities, decentralising governance and bestowing absolute transparency on the inner workings of dividend distribution and investor vesting.
CFX Advanced will allocate a portion of the funds raised in its STO to enhance the functionality of its HATS (Highly Advanced Trading System) software. The CFX Token entitles token owners to a dividend on returns on internal and external funds managed with HATS. A blockchain-based financial markets sentiment indicator for stocks, currencies, commodities, and cryptocurrencies, the “CFX Sentiment Index“, will enhance the effectiveness of HATS.
”We have leveraged our 30 years experience in technical analysis in stock exchanges,” said CFX Co-Founder and CEO Marco Mottana. “The CFX Token platform that ICO Malta is developing will create a unique way to trade markets with the transparency and advantages only blockchain can offer.”
The CFX Token will be tokenomically integrated into the CFX Sentiment Index. Token owners will communicate their sentiment regarding various financial markets to the Sentiment Index through a smartphone dApp and receive CFX Tokens in return. Together with HATS, the Sentiment Index will enable a “System of Systems” trading system that reduces investment risk while increasing performance.
“Security tokens like the CFX Token are a big part of the future of fintech,” said ICO Malta CEO Jan Sammut. “We can hardcode functions into a security token that would otherwise be outsourced to third parties, including amortization and interest payments, covenant compliance, and investor protections. This disintermediation reduces costs, increases transparency and reduces the margin of error, resulting in higher returns on investment.”
Security tokens are an exciting new technological vehicle for opening access to otherwise illiquid private-market assets. Security tokens promise to be a fully-digitized asset class that can be bought and sold on exchanges in any amount that an investor desires and can afford.
Sammut added, “Security tokens provide a more efficient way for companies like CFX to raise capital and democratize investment products. There will be a shrinking divide between ownership and liquidity. Security tokens are the next logical step in the use of blockchain to free up corporate finance.”
Fabrizio Crimi, CFX Co-Founder, said that, “We are proud to be established in Malta and working with ICO Malta. I have lived here for 12 years and have watched Malta evolve into the ‘Blockchain Island’ of Europe, with the regulatory clarity that makes it the very best place to be for launching our CFX security token offering.”