German Entrepreneur, Marvin Steinberg

Industry are evolving all the time, but blockchain evolves quicker than any industry. Ideas and approaches that were cutting edge a year or two ago are now seen as outdated and in need of change. The Initial Coin Offering is a good example.

Not long ago it was seen as the perfect way for new businesses and startups to raise funds. Now, it’s regarded as too risky, too vulnerable to legal issues and scams. But what is replacing it?

The answer to that question and many others in the blockchain space could lie with STOs, according to CPI Tech founder, Marvin Steinberg.

Life Before CPI Tech

CPI Tech was founded by Marvin Steinberg, a former ping-pong athlete who had a promising career ahead of him when he picked up an injury and was forced to retire. He transitioned to a career in the energy sector, where he excelled using unique marketing approaches.

Quickly after founding SWDirekt, Marvin realized that he needed to expand and began to develop a great sales formation, recruiting affiliates and sales people in Germany and experiencing rapid growth. After achieving enormous success and building an energy distribution company, Steinberg eventually sold his firm and moved to a new industry: blockchain.

What Does CPI Tech Do?

With the help of Maximillian Schmidt he founded CPI Tech, a company built to help enterprises enter the crypto space through security token offering (STOs) and blockchain development consultancy.

CPI Tech exists to provide support for new blockchain and crypto projects. It can be a complex and daunting industry to break into, rife with unique challenges and potential pitfalls. Steinberg’s goal was to make that process easier and smoother.

One of CPI’s services is to help projects set their tech infrastructure in place as well as help the company tokenize their asset and launch the STO, aiming to complete this within just 30 days. This includes outlining a business structure and goals, assessing risks, and much more.

This is coupled with extensive engineering, marketing, and legal support every step of the way, helping clients navigate and potentially treacherous industry. The platform is designed to be in operation 24/7 and built to execute 10,000 orders per second, per market.

Central to Steinberg’s process is the STO or Security Token Offering. Similar to the ICO, this approach comes with a number of benefits, chiefly its increased security and resistance to scams and legal problems.

It’s a way of delivering all the benefits of an ICO — like fractional ownership, lower costs, and 24/7 markets — without the drawbacks.

According to Steinberg, CPI Tech have seen enormous success and so do the projects they’ve helped to build from the ground up. A quick glance at the stats supplied by Steinberg:

124% average yearly sales increase with custom marketing campaigns
$32k bitcoins processed through software since 2017
43+ Successfully completed high-value projects
420% average visitor increase for traffic campaigns
$110k+/month average profit increase for clients

What’s Next?

Steinberg’s plan is to keep moving forward.

One particularly exciting project on the horizon is the $700 million Times Square Token — a plan to tokenize a part of Times Square, according to Steinberg.

This ties into CPI Tech’s larger goals to bring tangible assets like property onto the blockchain and trade them as tokens. This opens up a number of opportunities, for example, much easier fractional ownership. With security tokens, it’s easier to own a small part of a very expensive asset, compared to traditional securities.

Steinberg’s project is an example of how blockchain is becoming ever more closely intertwined with traditional trading and is even beginning to replace it. “Crypto can be a confusing and intimidating industry to be part of, we’re trying to make things easier and place companies on the right path and provide them all the necessary tools so they could participate in a movement that is changing the world” says Steinberg.

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More informations about Marvin Steinberg: https://steinberginvest.de

Pros and Cons of STOs

STOs are regulated, which means there is a lower risk for investors. Security tokens are usually backed by real-world assets which also helps investors assess the intrinsic value of the tokens. Combined, the preceding two factors allow STOs to draw more attention from traditional institutional investors.

A wide variety of companies can participate in the STO ecosystem. Platforms like exchanges, broker-dealers, or custodians can all benefit from STOs. These companies can easily issue security tokens to facilitate access for retail investors, as long as the security token can be filed as security.

STOs can be tricky, though the legal aspects of security tokens can sometimes be blurry and according to Marvin Steinberg, an STO expert and the founder of CPI Tech, companies that want to issue an STO will have to take account for promotional and technical aspects as well as legal compliance. The demand for security token offerings is increasing rapidly, which puts pressure on companies not to miss out. As a result, hundreds of both startups and enterprises are rushing things and consequently making critical mistakes.

Businesses that want to make use of STOs will need to have a solid platform and comply with all the regulations and laws, this is crucial for the success of the STO. To aid the growth of security tokens, Marvin Steinberg has created an STO guide that offers crucial information on how anyone gets started with STOs.

Steps and Tips to Launch a Successful STO

In his guide, Marvin Steinberg states that the first thing a business needs in order to launch a successful STO is to choose the type of STO, as well as its jurisdiction. Different types of STOs will attract different types of investors. Its structure also has a massive impact on dividends, shares in the company, and many other aspects.

Marvin Steinberg goes on that businesses would also need to create something called SPVs. A Special Purpose Vehicle is a structure that becomes an equity shareholder in the main company and allows investors to access dividends and equity shares. Marvin Steinberg clarifies that he has been taking advantage of the EU’s small offering exemption by creating 3 main STO rounds.

Most security tokens are typically created on a few main blockchains including Ethereum, Stellar, or EOS. Businesses will need to issue the token and then customize it to their needs.

Marvin Steinberg asserts that businesses need to understand how crucial it is to have a dedicated dashboard to the STO as a solid infrastructure will ensure that the issuance of tokens is safe and compliant with all the regulations required. As previously stated, an STO will be successful only if it’s able to reach the right network of investors. The classic model still prevails here with the 3 traditional stages: the private sale, the pre-sale, and the main sale.

It’s important not to forget about marketing. Sure, you might have the greatest product or service ever but who is going to buy it or use it if no one knows about it? Marvin Steinberg explains how important marketing is if a business wants to raise money through an STO, and he emphasizes how strict the rules for crypto marketing can be. Google and Facebook, for instance, do not allow regular PPC ads for cryptocurrency products.

Businesses need to use innovative marketing strategies that are unique to their business model and are able to reach the right group of investors while taking into account all the metrics and milestones.

Clearly, launching a successful STO can be hard and confusing, especially if you are not too familiar with the blockchain industry. Getting help from a certified STO advisor or service is crucial even if you are familiar with the cryptocurrency market. Many companies simply rush the process and make simple mistakes that can easily be avoided.

Use Only Reputable STO Services and Solutions

While the demand for STOs is increasing, the number of services offering STO solutions is also increasing. However, most STO service providers aren’t always professional and can, in fact, be scams. That’s why it’s extremely important to choose a reputable service or platform with a good record.

Marvin Steinberg and CPI Tech have a proven record with more than 43 successful projects and currently aiming to tokenize a part of Times Square, embarking into a $700 million project. CPI technologies was co-founded by Maximilian Schmidt, an expert in developing BTC applications.

The State of STOs

One of the biggest innovations for the fundraising of cryptocurrencies was the creation of ICOs. This form of crowdfunding was extremely popular in 2017 and 2018 when hundreds of ICOs were launched every month. However, the hype quickly faded as most ICOs failed or were simply blatant scams.

STOs are safer as they are required to comply with regulations. There is a stark gap between how an ICO operates in comparison to an STO. Common ICO promotional tactics like cryptocurrency airdrops and cryptocurrency bounties should not be executed with STOs, as legally compliant securities cannot be distributed with ease.

Businesses looking for growth opportunities that offer investors peace of mind and have a higher chance of attracting reputable institutional investors will be able to do so with STOs. Marvin Steinberg believes STOs will dominate the sector in the near future and has created a simple-to-understand guide on STOs and how to execute them successfully while complying with all regulations.

Additionally, for those helping to acquaint themselves with STOs, Marvin Steinberg’s 2-minute STO quiz could be a good place to start. Access the quiz here.

For more information:

https://www.coinspeaker.com/marvin-steinberg-benefits-sto/

https://hackernoon.com/interview-with-marvin-steinberg-a-german-serial-entrepreneur-mcq14rh

https://de.linkedin.com/in/marvin-steinberg-910a0bb3

German Entrepreneur, Marvin Steinberg

Thursday, January 30, 2020

STO Expert Marvin Steinberg says “ICOs are Dead. Long Live the STO”