Are Crypto Assets Really Just Manipulation? Masks and “Tokenized Security”

Crypto assets are actually like a “mask” (referred to as the “medium independence principle” in the new regulation).

If the mask is empty, the show continues until the “mask is removed”, and when the mask is removed, the show ends. This is the summary of crypto projects for manipulation purposes. While project owners make a profit from token purchases and sales, they also “leave” the token prices they have “inflated” for a certain period of time in the laps of others. Sometimes there is something real behind the mask, and it is necessary to remove that mask to understand what it is. When that mask is removed, a real asset such as a stable currency, payment instrument or real estate share may appear behind. Accordingly, crypto assets are subject to certain distinctions: “payment token”, “security token”, etc.

Security tokens can be briefly explained as tokens that are issued to bring profit to fund holders as a result of activities carried out with funds collected from others and are considered as capital market instruments due to their nature. When we remove the mask on these tokens, it is possible to see a real and beautiful project, and when the mask is removed, the show is over..

If security tokens are considered as a large set, there is also a special subset within it called “tokenized security”.

When the mask is removed, the show usually does not end (sometimes it can be unpleasant, but the show continues!). Because when we remove the mask in tokenized security, we encounter the traditional capital market instruments we know. Bonds, financial notes, stocks, futures, options. The only difference is that they are on the blockchain infrastructure and each of them is represented by tokens, in other words, they are “masked”.

Therefore, just as the asset behind the mask, such as bonds, stocks, etc., is for manipulation purposes, its token masked form is also for manipulation purposes. Although performance is a different issue, there is actually no manipulation in either of them under normal conditions. There are only alternative financing methods, one of which is an adapted version of the other to new technologies and is now under CMB control.

In the new regulation, tokenized security is included as an alternative to “the issuance of capital market instruments in dematerialized form and monitoring by the Central Registry Agency.” Therefore, tokenized security is not something “brand new,” but an alternative that benefits from new technologies.

What are the advantages of choosing this alternative? It can be called bringing together traditional markets and crypto markets.

There is no hour or day when crypto markets close, they are open for trading 24/7. Again, there are no times like (T+2), it is possible to make instant transactions via blockchain. There are generally lower commissions and it is a market with high market liquidity.

These are very important for investors and traders who are constantly trading. Since blockchain eliminates physical boundaries, it is possible to reach more people and investors globally. On the other hand, for issuers, it is possible to facilitate regulatory compliance, restrict sending to prohibited wallets, automate dividend (profit share) distribution and voting processes or the implementation of share option plans thanks to smart contracts.

Thanks to blockchain data, the issuer company’s captable management also becomes much faster and easier. In terms of platforms, listing becomes easier; it is clear what the listed asset is, and the questions of whether it is a capital market instrument or has a permit can be answered more easily.