The reportedly first legally compliant digital security for both US and global retail investors is gearing up to launch by SOMA Finance, a crypto collaboration project by MANTRA and Tritaurian Capital.
Its new compliant cryptocurrency goes under the name SOMA token and is set to launch at some point over the next month.
SOMA’s new token
The new digital security will be participating in a regulation crowdfunding issuance on the SOMA Finance platform to raise funds and attract investors. This method is approved by the SEC, allowing companies to offer and sell securities through crowdfunding.
The company said: “Regulation Crowdfunding opens up entirely new access to capital and compliant digital assets to companies seeking to benefit from DeFi without violating securities law and regulations.”
SOMA Finance has plans to sell tokens up to a value of $5million in one or more rounds. Initially, it will be priced at $2.50 per token.
Holders of the token will receive benefits, such as the right to a dividend of up to 10% of SOMA’s profits.
This stake in the company will represent a financial interest in SOMA at a corporate level.
It may allow investors to evade some risks. A common criticism of the crypto industry is the lack of financial claim an investor has in a project or coin. The lack of equity often leaves investors vulnerable to bankruptcy or fraud when a project declines.
SOMA Finance said this approach makes it unique in the crypto world.
The launch of the SOMA token is scheduled for some time between the end of September and early October.
The SOMA marketplace
The decentralised platform is currently in the midst of launching various different products.
The SOMA Finance marketplace is currently in its phased launch process as it starts on-boarding customers.
The upcoming SOMA token sale will also introduce the SOMAstarter launchpad. This will be followed by the decentralised exchange and SOMAswap. Other products are said to be in the pipeline.
SOMA Finance co-founder and CEO of MANTRA John Patrick Mullin said: “Offering a compliant bridge between DeFi and traditional financial systems was no simple feat, but we are confident in our secure onboarding process and comprehensive encryption protocols.”
Tritaurian will manage regulated activity on the platform, utilising SOMA Finance’s technology.
“We have been working quietly but diligently to develop the necessary technology world’s first hybrid decentralized marketplace for digital assets, compliant digital securities and NFTs while liaising with regulators to provide a highly regulated decentralized financial platform,” said William B. Heyn, SOMA Finance’s other co-founder and CEO of Tritaurian.
SOMA Finance’s investment round
SOMA Finance successfully completed a $6.5m seed round last year. This round was led by blockchain gaming and open Metaverse company Animoca Brands. Other notable investors included Kenetic Capital, Griffin Gaming Partners, GSR, and many more.
At the time, Animoca Brands co-founder Yat Siu said: “We believe that SOMA Finance is well positioned to become a leading, regulatory compliant decentralized exchange that is able to offer tokenized equities, security token offerings and various other DeFi services.”