STO – about the financial revolution, which is just around the corner (Polish + English subtitles)

Hi! Kamil Jarzombek here, and in todays video
I want to explain the Security Tokens market in the simplest but most interesting way. In another words tokenization, Security Tokens
Offering, STO. Why it is the market that will boom in the
nearest future? Who already started the tokenization process? Who bets on it? Which companies that we all know are in this
moment connected with this technology and this method of raising funds. And of course I will explain how we tokenized
SelfMaker and why we did that. What value it gives except of financing? What additional pros has the tokenization? You will see many simple examples, curiosities,
stories, so I hope this video will be very valuable for all of you. Ok! Without further ado, lets get to the point! SECURITY TOKENS OFFERING, the revolution that
is just around the corner.

What is STO? STO is really a process in which company raises
funds needed for development, using the blockchain technology. STO in the nearest future will become the
most popular method of acquiring financing. And that are not my words. In this presentation I will try to confirm
them by using external authorities, people that come from traditional market, but they
say the same. Before we head to STO, to tokenization, we
need to answer one, very important question. A question that is like a zero point that
we have to start from. WHAT IS BLOCKCHAIN? It is the technology that serves as a database,
which cannot be “deceived” and is “decentralized”. So there is no place that we can go to, push
the “OFF” button, and everything disappears. It is all based on the fact, that many different
computers and all their computing power supports this database from places all over the world. Everyone who connects to this database, makes
it stronger. That’s why Bitcoin can’t be turn off or
cheated, because it is also built on blockchain technology So many hundreds of thousands of computers
are supporting this database, that it is impossible to find the one computer, turn it off to delete
everything.

This is the revolution. Blockchain is a database which can’t be
hacked and is decentralized with no “OFF” button. If you type “blockchain” in Google, you
will find many different things, like: “World Economic Forum states, that blockchain can
help global economy” “Polish banks use the blockchain technology. Credit Information Bureau in the cooperation
with polish-british company “Billon” created the platform for banks that is based on blockchain
technology”, Santander also goes into blockchain using it to transfer money between banks,
quick payments from one place to another in very simple, transparent and secure way.

Blockchain enters every economical branch. It is the technology that revolutionizes the
way of transferring and storing data and that’s why it is used so often in many sectors. “KFC will use blockchain to improve effectiveness
of digital advertisements”. So the blockchain can be used also on the
digital marketing market. And now we get to the point. OK, we got “STO” what means “Security
Tokens Offering” or in another words “tokenization”, that are all the terms that mean the same. So when you hear about “tokenization”,
you hear about “STO” or “Security Tokens Offering" STO is a process of saving the representation
of company shares on the blockchain. That is the simplest way to explain what tokenization
is. If you type “tokenization” in Google,
you can read many positive articles.

“Tokenization is a new way of raising funds. Acquiring capital on the rules like on the
stock exchange is possible thanks to tokenization. It will let to emit blockchain representation
of company securities for those that don’t have the possibility to be listed on the exchanges”. I would add here “don’t have possibility,
od DON’T WANT TO be listed on the exchanges in the first phase of development”. Assets tokenization. Why this process will revolutionize financial markets? This is the man, that majority of people connected
with cryptocurrency market should know.

He is the founder of Coinbase, which is one
of the biggest cryptocurrency exchanges in the world. And some time ago he said: “Everything will
be tokenized and connected by a blockchain one day”. And from one side you can say “OK. This guy is connected with crypto market,
so it is good for him to talk about tokenization in a good way”. But then I show the other side. This is Robert Greifeld, connected with traditional
market former Chairman and CEO of NASDAQ, the biggest traditional exchange in the world,
on which Facebook, Google and all the known technological companies are traded. Some time ago he said: “100% of the stocks
and bonds on Wall Street today could be tokenized, and in 5 years, 100% of the stocks and bonds
on Wall Street will be tokenized”.

So the person, who is strongly connected with
traditional market, who was someone responsible for the most important traditional exchange
says something like this about tokenization. Why? Because using tokenization you can make many
processes cheaper, better and more effective, So that is the point. When I talk about tokenization, there are
lots of people who ask me: “Kamil, who is interested in tokenization NOW? Who is doing anything in that direction?”. And here you have some bigger and more known
companies that are connected with the Security Tokens market now. London Stock Exchange, NYSE (second biggest
traditional exchange in the US), NASDAQ, Citi Group, HSBC, Boerse Stuttgart, Deutsche Borse
Group, many banks. Porsche also invests in the companies that
are being tokenized. That is just the small portion of the companies
interested in STO, and what more that are doing something, preparing platforms, getting
ready for tokenization. Another screenshot: “GPW (Polish stock exchange)
is building a platform to trade digital assets”.

Yes, polish biggest exchange is also getting
ready to this STO trend. They are planning and working on their own
platform for tokenized assets, that will come to light soon. “PKO BP (main polish bank) began working
with tokenization and smart contracts”, and yet again, next huge company that is starting
to work with tokenization, smart contracts and blockchain technology. What is happening looks like a race that no
one officially speaks about. Why? Because one who will be first, will take the
market, so it’s good to prepare in silence and hit the marked with finished product that
will be perfectly ready to serve for clients. NASDAQ is also working on their own platform for digitalized assets. It happens with assistance of R3 (private Ethereum-like
blockchain). Digital Exchange, Borse Stuttgart, second
biggest German exchange has already started its platform where you can buy cryptos like
Bitcoin, Ether but soon also Security Tokens, tokenizations. Lets jump to the existing real world usages
of tokenization. Silicon Valley – the place that I don’t
need to explain. Place where the biggest technological innovations
happened. And the problem is, that lifechanging investments
in the Silicon Valley companies were exclusive only for a closed group of people, for the
biggest investment funds.

I have always dreamed of having access to
these investments on the early stage. And here is where tokenization comes in. Why? Tokenization is the way to let people from
around the world to invest in the most interesting Silicon Valley companies before they are on the exchanges,
so in the phase in which you can expect the biggest returns. That is very important and I will talk about
it few times. The biggest return on investment is generated
in the moment when you can buy the shares before exchange listing. A project called “Silicon Valley Coin”
is being created. This token represents the aggregated value
of the most interesting technological companies, that are just before entering the exchanges. So you buy this coin, and have first ever
possibility to invest in these companies on the early stage.

It is possible thanks to tokenization, that’s
why tokenization is so valuable for investors like us, who never before had the access to
such investments. Next thing. Tokenization of real estate worth more than
300 million $. This is what in the nearest future will be the most supported case, and
you will see real working systems soon real estate tokenization. If there is huge property, worth hundreds
millions and it is hard to find one investor who comes and buys, it is good to tokenize
it. You emit one million tokens, worth 300$ each,
what gives 300M$ together. This way every investor can buy one, two,
fifteen or one hundred tokens, and become the owner of the part of huge property. This is already happening! So STO is the way to tokenize huge and cool
properties, which earlier couldn’t find the buyer because the price was too high for
one investor. This is the enormous trend which is emerging
in the US, but also in the Europe.

Here’s more! One of the biggest Brazilian investment banks
starts the tokenization of companies which is worth more than 1 BILLION dollars! So the bank from brazil is so much into STO
that it will offer tokens of the early phase technological companies, to their clients. Again, it begins from the bank. In these articles you can see Tezos – an
infrastructure to conduct tokenization processes like this Next case. This is one that touches me directly – Greyp
company, that was tokenized on the Neufund platform, and in which the Porsche invested
money. They created the extreme electric mountain
bikes. They are on the very early stage, they emitted
their token, which could be bought by everyone. I have these tokens, it is real share of the
company, I hold it on my Ledger cryptocurrency wallet, and that’s how I have the access
to interesting technological company on so early stage.

Things like this are happening now, so it
is good to be informed 😊 Lets move to the question: “Why companies
are using STO more and more often?” and “What are the profits for investors?”. I said it few times but I want to summarize
it now. On the one side is the company which has the
lower costs of acquiring capital, it will pay less for the capital that it wants to
raise.

It is an alternative for traditional financial
market. Now if you are a start-up and want to raise
funds for development it will be a huge problem in the pandemic times. Investors are afraid of investing, so we need
an alternative, and this alternative is tokenization. Your client can become your investor now. Think about the brands on Instagram that you
follow, that you buy from and that you want to have a share of. Imagine the world in which you buy your favourite
shoes, and this brand comes with the idea: “Hey! We need financing for development, but we
don’t want to sell to the big investment funds.

We create a coin based on our company, on
our value”. Imagine how world would look then. Client becomes your investor and your marketer,
and we believe that is how world would look in the future. Financing from clients who are your investors
thanks to tokenization. Investor is a marketer. Why? Because when you bought you want to share
this info with everyone. What is the profit for investor? What can he gain by investing such companies
on the early phase? First of all, those investments are very attractive.

As I said, till now we could hear about best
returns only after they were listed on the exchanges, but it is already too late. The biggest ROIs (Return On Investment) are
bought before it happens, it is the most important, and thanks to tokenization it will be possible. Discount and bonuses for engagement in company
development is what I will explain later when speaking about SelfMaker. Third thing is big ROI. Of course risk is also higher, but the possible
ROI is enormous. VERY IMPORTANT THING NOW The biggest money is earned by investing in
companies on early stage of development, before entering the exchanges. IT IS CRUCIAL! Listing on exchange = realization of profits! When something is being listed is to late
to buy, it is the right time to sell, because the biggest profits are made before exchanges.

To make it clear I will tell a story about
the company that I don’t need to introduce. Snapchat is the hero of many interesting stories,
for example how it was established. But today I want to tell you something different,
about a private school from California that invested 15000$ in Snapchat on early phase,
then earned 24 millions (!) after it was listed on the exchange. How? Children of an investment fund CEO attended
this school. One time when he came home, he noticed that
his kids are playing with a new app and can’t get enough of it. Yellow app. He asked what it is all about. You send the photo which disappears after
few seconds. Initially he thought that is another silly
thing which will be soon forgotten. But he was wrong, it was used more and more. He asked a question: “Is is something fresh,
new, valuable?”, kids said: “Dad! It’s like Angry Birds, everyone plays with
it, everyone got it.

More and more people are using it. It’s amazing”. He contacted the CEO of Snapchat, told that
he want to invest, and then he asked the school principal if he wants to invest in it too. School bought shares for 15000$, which became
24 millions after being listed on the exchanges. That’s why early access is so important,
and it is easier thanks to tokenization. Why is the token more valuable than traditional
security? On the left you see the traditional paper,
investor can buy it, and sell it higher when the company develops, or eventually get some
dividends. On the right the digital representation, security
token, we can buy it, sell it anytime, additionally we can receive tokenda (profit share), and
additionally lots of bonuses like product discount, airdrops (free tokens of the ecosystem, will tell
about it later), additional tokenda (bigger profits for meeting some requirements). Token is a share of XXI century, which can
be upgraded with cool features. Maybe you know that on the traditional market,
there are also programs that give bonuses for the shareholders. Here is ORLEN (polish fuel company). If you are a shareholder, with right amount
of shares, you get a card shown here, which gives you about 10% discount on any fuel.

This way Orlen gives additional profits for
their long term investors. And this is happening on the traditional market. In requires whole new infrastructure, cards,
databases, huge costs. With tokens it is way way simpler. Now you can see first, exclusive screenshots
from our SelfMaker app which will come to light soon. In this app we have to possibility to add
all the bonuses in one place, quickly, easily and cheap App will be a headquarter for investors, place
where you can hold your tokens securely, obtain Tokendas, check the exclusive, inside news
from SelfMaker, not published anywhere else. Moreover, the system is basing on QR codes,
and we want these QR codes to be helpful when rewarding investors with better product prices. Imagine when you want to buy a SelfClean,
which normally costs for example 400$ (blind shot) and we make an action, that gives you 10-15% discount
by scanning your exclusive QR code. It is all possible thanks to assets of XXI
century, which are Security Tokens! That is the future of our idea, to make this
app the main command point with everything what is important for SelfMaker investor.

That is our goal. Now I want to head to the part where I explain
how we tokenized SelfMaker. Many people wonder “Why tokenization?”. My answer is always the same. We strongly believe that tokenization, the
new method of raising capital, the method of XXI century, I mean building global company
basing on community, together with community. We believe that if we have investors in Australia,
we can get clients in Australia. And it already works. We have investors from different markets,
and on these markets the trend emerges, they want to introduce our products there. Investors are asking for offers on our products. For us, it is a game-changer on this market
when it comes to developing a company. What is important to understand is that maintaining
company sovereignty is crucial.

It is easier then. If you as a company owner go for a financing
on traditional market, you lose your company sovereignty. You sign documents that tie your hands, that
make growing company and scaling it very hard. With tokenization such problem doesn’t exist. Full control is still in the hands of SelfMaker
team, and I believe that this team lead by Marek is the only who can turn it into global
success, that’s why sovereignty is so important. Tokenization is also a cheap and effective
way of raising funds, but I will explain it more later. Next thing that I’m being asked about a
lot is “Why Dubai?”. The common view is that Dubai is the tax haven,
place for cheaters – BULLSH*T! Why? Majority of people don’t know that in October
2019, Dubai together with Switzerland were deleted from the black list of tax havens. It is no more the place for escaping law,
it is the place to build global businesses in transparent and legal way. And we decided to do so. There is full connection of the dubai company
and the polish company, we are not hiding anything, full transparency.

Dubai gives us liberal law, smaller business
risk, law favorable to cryptocurrencies. You can read that Dubai encourages crypto
companies to appear on their market by creating hubs with 0% tax, everything there is heading
in the direction of tokenization, blockchain, crypto It is important for Dubai, to create a place
friendly for modern technological companies. Poland equals to volatility and uncertainty. We had the possibility to make the tokenization
in Poland, but it would be so unclear and so hard that it would create a big business
risk. I hope it will change soon, and it will be
easier and more clear, and I hope it will go this way, because I want to have a tokenization-friendly law in Poland too. The last but important thing: SelfMaker will
enter the market by 2022. We as a SelfMaker have attended some of the
Dubai technology conferences, so this is the place that we want to be seen in nearest future.

Another question is “Why we needed to create
another company to be tokenized?”. It is a matter of law, technology and business,
but every tokenization looks the same. You have to create new company which takes
over the part of main company, and this new company is fully tokenized. This creates a connection between them, and
every tokenization looks like this, so we had to create the new company associated with
the original, to conduct all the process.

That’s why created it in Dubai and that’s
why it all works this way. It’s crucial but not many people understand
that every tokenization looks similar. What exactly is SELF token? It is for profit distribution among investors. Here you can see the screenshot of the app
that soon will be available on AppStore and on Google Play. And it is the place where you can securely
hold your coins. It is the place where private keys are on
your side, without access from outside. This is not a wallet that you could already
see with the companies that are no longer on the market, that I don’t even want to
talk about, which promised safety, NONSENSE. The safe wallet is the one, which gives YOU
and only you the private keys.

SelfMaker gives full transparency, private
keys are only yours, tokens and the wallet is based on Ethereum, and you will have own
address, that holds the tokens, that you can check on the Ethereum network explorer, it
will all be clear and correct. App gives also the additional benefits like
airdrops (new coins based on SelfMaker ecosystem), that you will get for free as our early investors. There is also a loyalty program for freezing
tokens for a long time, in which your tokenda will be additionally increased.

Full system of appreciating loyal investors,
app is a headquarters. And finally a very important question: "OK! What the token really gives?" Is it really connected with the company?”. Our model is very innovative, because on one
side we got a tradeable token and on the other it is also the token which once a year can
be can be exchanged for real paper security document of the Dubai company. So the token is something like an bearer share,
you can exchange it for a real Dubai company share. Next thing I am being asked about. What collateral the investor has? At first, what is really important – no
hiding here. Marek and Tomek are the people behind both
polish and Dubai companies, are not hiding.

Full personal connection here. There is also full capital relationship without
any combinations. Polish company sells 25% to the Dubai company. Everything is transparent. Whitepaper serves as a simplified emission
prospectus. It contains all the goals, assumptions and
you as an investor can rely on it. It is the paper I advise to read, that describes
which way we are going and how it all will work. Read it, it is extremely important document
for every investor. The company is on the market for 5 years now,
no one here can disappear from day to day. We got full production, transparent, large
and serious clients, everything is clear you can come to Łódź in Poland and see yourself how it works. This is how we do it, full transparency from
the start till the end. And finally crème de la crème, something
that all of you will have to fight and explain, and something that has got really bad PR – recommendation
marketing.

I recommend something to you, and I got profit
from it. Typical polish thinking: “Why you get money
for recommending something?”. I want to show, that recommendation marketing
is one of the best forms of selling and acquiring capital, but only with one condition: WHAT
YOU SELL NEEDS TO HOLD REAL VALUE! We sell token that will give profits, which
is associated with the company that is developing in amazing way, which is fully transparent,
which has got serious clients, and for us it is the real value that we sell. We put our bet on decentralized selling office. Each one of you can become the investor and
a seller, who recommends this investment to people you know and gets profit from it. Important thing is, that every way of raising
funds costs. It is not like you go to the exchange for
free. Fees are huge. So every method costs 20-30%. Our concept is different: “Why investing
our funds to one broker’s office who can lead us to the exchange, when we can share
this among our investors who actively promote us and help in the process of raising capital.

It’s not only about collecting money, but
the fact, that our investor becomes the client, marketer and our PR defender. Check the chart, which shows how engagement
on our fanpage grew only because we used recommendation model during the presale phase. 138 entities invested in presale, what gave
9 very large contracts. Investors give us contracts, so we are creating
here something really new, something that has huge value. And in the end, when you sell the REAL VALUE,
the recommendation is the best way of raising capital, and we will
defend this concept, because we believe that the network effect, the fact that investor
becomes our client, marketing specialist, our defender is the biggest value, something
that other companies will pay 50% of raised capital for. Recommendation marketing is our biggest strength
in this model, and I believe that we will show that real value
can be sold this way, it will defend itself at the very end, moreover the
company will benefit enormously from it.

That’s all! Thank you for your attention. I hope that this video will be useful and valuable. If you got any questions, you can address
them directly to me. I will answer for sure. Lets stay in touch. Thanks for your attention! Bye!.

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