Talking about Security Token Offerings (STO), its strengths lie in its ability to provide finance to single projects. Along with that, STO’s primary focus is to work for housing units, windmills, or ships. The Green Ship Token is one of the biggest STO to date, along with a hard cap worth 50M USD. Apart from this, the token will be charged with an 8% interest rate with profit participation rights and financing for the bulk carriers.
Why did a traditional company decide to issue a security token?
Vogemann, a 130-year-old German company, has always believed to be innovative. The managing director of Vogemann, Markus Lange, stated in a press release that the extension of a security token is a good plan for extending a financial strategy.
Despite the ongoing global health crisis, this is a better time for making a considerable investment. The prices of these four bulk carriers are currently quite affordable. Since there is a shortage of such models in the market, this is a favorable time for investing. The investment in these ships is non-repetitive, the Security Token Offerings have flourished through the ongoing crisis, which makes the deal an ideal investment strategy.
All these seem to be quite impressive to witness how far the ship financing has come. Previously, as stated in the history of shipping finance, it was only financed by the royals or the government. During the 11th century, the Venetians invented the “Collenganza,” which was a contract between the investors and merchants. The profits availed through such voyages were distributed in a pre-planned manner. This method enabled a large part of the population to get access to the commercial shipping industry. The “Colleganza” is often addressed as the forefather of the stock company.
The tokenization of four ships is worth 50 million USD, which will further help to establish the rightfulness of the Security Token Offerings. The plan of the “Green Ship Token” will excite anyone who wishes for a better environment. These new ships will be complimenting the 2029 regulations for the emission of CO2, which makes them the most eco-friendly ships.