Kudos to SolidBlock’s CEO Yael Tamar for contributing the first chapter in The Digital Asset Handbook, a far-reaching and eye-opening read on tokenization and how society is changing.
The Digital Asset Handbook is a compilation of essays by experts in the tokenization space. This first edition was published by Clear Rating (a subsidiary of Entoro Capital), a valuation and securities rating company based in Texas that focuses on providing company valuations, ESG ratings, and securities ratings with an emphasis on digital assets.
The JOBS Act
The book is dedicated to what Clear Rating calls “two main forces” that elevated digital assets to the forefront of the changing financial industry, namely, US Legislators with forward-thinking views on cryptocurrency, blockchain, and digital assets; and the passage of the JOBS (Jumpstart Our Business Startups) Act in 2012, which removed regulations surrounding how small businesses can access capital.
This past March, Yael had the pleasure of interviewing David Weild IV, known as the “father” of The JOBS Act, on the BlockSolid podcast. The legislation “broadened the tool kit for entrepreneurs,” explained David. Reg 506 C of the JOBS Act is sourced from a paper David wrote, called “The Wake-Up Call for America.”
In June, Yael glimpsed a look behind the scenes at Entoro Capital, a global investment bank for alternative investments and assets, when she interviewed Adam Richard and Sean Levine, two of the top players behind the success of this company.
Among its many achievements, Entoro is the first company to issue an NFT as security under Reg D 506 C of the JOBS Act. The virtual artwork, which was created live, was auctioned off to accredited investors at the October 2021 Texas Blockchain Summit VIP dinner in Austin.
As head of Corporate Development and Strategic Alliances, Adam advises startups and has consulted numerous early and growth-stage companies on their product-market-fit, go-to-market strategies, product commercialization, and capital raising guidance. Sean is an investment banker, attorney, securities analyst, entrepreneur, and consultant with a focus on private placements, energy markets, fundamental and technical equity, commodity analysis, trading system development, and policy intelligence.
Together, as guests on BlockSolid, they explained the importance of a broker-dealer, why primary investments are better than secondary, the importance of Regs CF, A+ and D, and how to stay on trend even as the financial and technical space keeps advancing.
Adapting to Change
In the introduction to the book, James C. Row, a chartered financial analyst with more than 25 years of experience in deal structuring and energy finance, quoted Charles Darwin to emphasize how crucial adapting our behaviors to the rapidly changing economic landscape has become.
“In recognition of the change forged by digital assets, Charles Darwin understood this very well as he wrote in his famous text Origin of Species, ‘it is not the strongest of the species that survives, nor the most intelligent. It is the one that is most adaptable to change,’” writes Row.
The book is also endorsed by two senators, Ted Cruz (TX) and Cynthia Lummis (WY), both staunch supporters of cryptocurrencies. This November, Senator Lummis tweeted, “Great leaders do not fear the future. America could win the future by embracing Bitcoin.”
What is Tokenization?
As Yael explains in her chapter on “Real Estate Tokenization,” “tokenization is the process of substituting sensitive data with a non-sensitive equivalent, referred to as a token. This token has no extrinsic value or meaning but is a reference to the sensitive data that is made secure through a tokenization system. When combined with real estate, tokenization is an emerging trend that allows a property to be sold fractionally rather than in traditional chunks or apartments. It helps asset or fund owners raise capital more efficiently and offers investors unprecedented access to private investments. It allows for transparency in all dealings and the quick liquidity of assets.”
While the Covid-19 pandemic continues to create havoc on many levels, including shuttering many businesses and harming the income of an undisclosed number of individuals, Yael writes that, “precisely now, in the fallout of the COVID-19 pandemic, is the optimal time to tokenize and consider what awaits the real estate industry’s foreseeable future. In times of chaos, opportunity often exists.”
Download The Digital Asset Handbook here, and learn about the exciting changes affecting our economic future.
For more information on SolidBlock and how to invest in our digital marketplace, click here.