Hollywood Star Ventures Into Security Tokens

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As groundbreaking innovations continue to penetrate the finance space, it is almost impossible for this innovation not to spread to other industries. The movie industry is one of such sectors currently experiencing such revolutions. This is due to the invention of distributed technologies like Blockchain, which has brought about the concept of tokenizing everything.

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Tokenization is the practice of amplifying the liquidity of real-world assets. The idea behind tokenization is the same as stocks or shares, which denotes fractional ownership of stakes in a company. Anything and everything can be tokenized, and many believe it’s only a matter of time before everything is.

Daywalker Movie Fund

Award-winning actor, director, producer and martial artist Wesley Snipes, is on a bid to capitalize on this advancement with tokenization. The Hollywood actor in collaboration with Liechtenstein Cryptoassets Exchange (LCX), is planning to tokenize $25 million for a movie fund. The project is known as “Daywalker Movie Fund” (DMF) which intends to invest in Wesley Snipes and his production house, Maandi House Studios will create a medium for investors all over the globe to acquire a share in the fund’s production.

LCX plans on launching a fully compliant security token offering (STO) with the DMF, which will be represented by the DMF security token, to create a level playing field for both retail investors and Hollywood financiers.

Regulatory Perks

STOs, like initial coin offerings (ICO), provide value via a digital token. Although, security tokens, unlike ICOs, are developed with a firm foundation of regulatory due diligence. Also, security tokens represent real assets, much like shares in a company or equity in real estate while ICOs offer a token that can be utilized only through specific infrastructure.

One major characteristic that gives security tokens its legitimization is it’s time ties to regulatory governance. However, the operational construct of tokenization differs across jurisdictions. In Liechtenstein, where LCX is situated, the regulatory body passed a law dubbed the Blockchain Act. The act virtually provides an explicit legal basis for ownership as well as a safe storage of the security tokens. It also provides strict rules concerning Anti-Money Laundering and Know Your Customer (KYC) requirements.

An Increasing Demand For Tokenization

Wesley Snipes will not be the first to undertake this journey into movie tokenization. The pioneering body of the concept is tZERO, a Blockchain subsidiary of a U.S. retail company Overstock.com.

There is a rising demand for tokenized funding, considering that there is a dire need in the film industry for new avenues for liquidity. Normally, funding in the film industry comes from different revenue streams like hedge funds and individual investors from wealthy individuals. The downside to this in contrast to security tokens is that creates a situation whereby ownership of the finished product is shared with the investor.

Source: https://learn2.trade

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