Interview with Frank Geßner — Chairman of INVAO Trading AG
Which problem is INVAO trying to solve?
Many people recognize blockchain as a promising innovation that will reshape the finance industry as well as other industries in a similar way that the internet has done with the media and retail. However, many investors don’t have proper insight into the many blockchain projects and cryptocurrencies that exist, or perhaps are unwilling to spend the time managing their investments. Some institutional investors are still searching for a compliant entry opportunity to meet their funds’ investment criterion. INVAO solves this problem by offering a compliant investment opportunity into a diversified portfolio of blockchain projects. Supported by an AI-based trading engine, we manage a blockchain asset pool and base our investment decisions on research and technical analyses.
As a result, investors receive a convenient and compliant entry into the asset class of blockchain projects and can participate in the expected value growth.
What makes the INVAO Token a Security Token?
The IVO-Token is an asset-backed Security Token that lets investors participate in a Blockchain Asset Pool. The token is similar to a “zero bond” as no interest is paid to the trade price. The profit-participation right, as well as the bond-similar structure, makes the token a real Security Token. INVAO is currently in correspondence with the Financial Market Authority (FMA) in Liechtenstein in order to seek compliance confirmation of the IVO token to national financial law.
What was your biggest challenge so far launching your STO?
Our biggest challenge for the launch of our STO is reaching our target investors, who may not have exposure to the world of crypto or blockchain technology. Our investment opportunity is specially tailored to an audience who have little or no investment experience in blockchain or crypto, but are interested in a well-managed entry. Additionally, in this target group there is limited knowledge about digital tokens and how they represent their investment. In order to do so, we need to explain the process in relation to traditional financial mechanisms.
However, we are convinced that all such funds will be tokenized in the years to come. Everything is becoming much easier and more convenient for all parties. As we help our investors learn about these new digital representations of their known financial products, they will see the investment advantages for themselves.
Why did you choose a STO as a means to raise funds?
As we manage a Blockchain Asset Pool, we also use the capabilities of the blockchain to benefit the investor. An STO gives us more opportunities to let our investors participate in the generated profit despite the different financial regulations around the world. The access to the investment pool is also available to a broader investor base than traditional investment funds. The investment is value-backed and allows investors to get in and out more easily than with traditional fund structures.
Why should I purchase INVAO Tokens and what are my rights and risks as a Token owner?
The IVO Token is your way to participate in a well-managed portfolio of blockchain assets. If you believe in the long-term potential of blockchain as an asset class and prefer to invest in a diversified mix that is secured and traded by AI-systems, INVAO is for you. All our trading profits and realized value growth will be reinvested into the token price.
First, we take 20 percent of the net profit for our token repurchasing program. INVAO will be purchasing IVO tokens from the open market on a regular basis (a process known in crypto space as “buyback”). INVAO will then “burn” those purchased IVO tokens (meaning: those tokens will be destroyed by a smart contract), thus decreasing the total supply of IVO tokens in circulation. With each buyback and burn the net asset value of the Blockchain Asset Pool is continually divided among the ever-shrinking supply of tokens in circulation, thus driving the price of each token up higher and higher over time.
We use another 20% of our net profits to fund social and ecological impact projects. The INVAO community, comprised of all INVAO token holders, will have a decisive influence on the selection and funding of social projects by the INVAO Foundation, guiding the positive impact of INVAO on a global scale. Our smart approach of supporting sustainable projects will increase public attention and the demand of our token and it is directly linked to doing good for our investors and society as a whole.
With INVAO you get the opportunity to invest in a blockchain asset trading platform that is trustworthy in legal terms and economically sustainable in the long-term while doing good for our investors and society.
Who is eligible to purchase INVAO Tokens?
Our blockchain asset pool is open to all investors, whether private individuals or institutional funds. For legal reasons, we are currently not allowed to accept direct funds from investors in four countries: North Korea, Iran, China, and the USA.
When will I be able to sell / trade INVAO Tokens? On which exchanges?
Once the STO is complete, the IVO token will be tradable. The first listing on cryptocurrency exchanges is planned for the first half of 2019. We are currently in extensive discussions with the first exchanges to make this possible.
Can you explain to us how the transfer of INVAO Tokens will work, both technically and legally? Are my ownership rights “just” stored on the blockchain or is there an “offline copy”?
By joining the INVAO Security Token Offering, investors will receive a corresponding number of IVO tokens for their investment. The procedure can be done in fiat (USD, EUR, CHF) or crypto (BTC or ETH) and is secured by an escrow service assuring token transfer against payment.
Since the IVO Token is legally considered a security, special procedures are required for the identification of owners of the token. This is known as KYC/AML. The token consists of a whitelist of identified token-holders and can interchange this list with other compatible authentication mechanisms. This makes the token transferable to anyone who has passed the same KYC/AML standards, e.g. on a primary exchange or secondary market.
Based on your experience — what would you recommend others who are planning to do an STO?
My recommendation is to be very generous with planning the time required, to allow for any unforeseen circumstances.
What was the biggest learning you made during the last year?
I’ve learned the importance of the social impact aspect of the INVAO project, both in terms of motivating the founding team to ensure the success of the project, and in terms of inspiring potential investors to get involved. Many of our partners and consultants were won over by this element of our project, and we are very proud to be giving back to the community in some capacity.
Thank you for the interview.