SOMA Finance, a brainchild of MANTRA and Tritaurian Capital, is slated to introduce the first legally issued and compliantly structured digital security to a global and U.S. audience of retail investors later this month. This move is the next step in what is increasingly being seen as a streamlining process in the burgeoning decentralized finance world.
SOMA Finance aims to raise up to $5 million via token sales – a pioneering step that could empower the company to amplify its market presence. Initially, each token will be pegged at $2.50, with the potential to provide investors with benefits such as profit share up to 10% of SOMA’s total profits. SOMA’s unique token is up for a late September or early October launch, with the token being the first regulation crowdfunding (Reg CF) issuance on its dedicated platform.
SOMA’s platform is designed as a multi-asset decentralized exchange (DEX) that serves as an issue platform for tokenized equities, digital assets and non-fungible-tokens (NFTs). This platform underscores an exciting landmark development in providing compliant digital securities while supporting a decentralized market place for digital assets.
However, amidst the innovative stride, it is worth noting that the crypto industry regularly faces criticism. A common thread of argument is that crypto tokens do not hold a financial claim on the equity or debt of the issuer. Once the company falls into bankruptcy or fraud, the tokens tend to lose their value. Invariably, investors are left stranded with valueless tokens, often without avenues to recover their funds.
Thus the intriguing part of SOMA Finance’s project is that it appears to present a one-stop solution. With co-founder and co-CEO William B. Heyn at the helm, the company is poised to offer a remarkable solution that expertly incorporates technology while aligning with regulatory requirements.
Tritaurian Capital, one of the parent companies, is a registered broker-dealer and is a member of the FINRA and the SIPC. With being approved to sell digital private placement securities using blockchain technology, it sets a promising precedent in the realm of non-alternative trading systems.
To encapsulate, SOMA Finance’s upcoming token issuance provides a unique blend of decentralized finance features, regulatory-compliant mechanisms, and investor-friendly options that suggest a potential paradigm shift in the way digital assets are valued.
Source: Coindesk
