Hacked Exclusive: Tokeny’s Luc Falempin on Portfolio Investment in Cryptocurrency
Investment / portfolio management software is arguably one of the most definitive examples of finance-meeting-technology (AKA ‘fin-tech’).
Beyond internal software utilised by market-leading fiat wall-street firms and hedge funds, a public and corporate market has been established for both individuals’ professionals and amateur traders with regards to managing their portfolios.
In comparison, the crypto space has seen little in the way of products focused towards either of these potential customer bases. There are, however there a handful of burgeoning companies which are seeking to establish themselves in this area.
The Origins and Objectives of Tokeny
To develop a more nuanced understanding of this unattended product area, we decided to speak directly to one of its progenitors: Luc Falempin – who is the Chief Executive Officer of forthcoming cryptocurrency focused asset-management platform Tokeny.
Falempin recalls that:
“Tokeny was created in 2017, with the ICO funnel following in November of the same year…
“When the ICO market boomed around 2007, [and] the user experience was relatively horrible and unsecure.”
He additionally states that, and his team felt that the answer (and conceptual ethos of the company) would be to empower all parties involved in token funding processes, by
“build[ing] the most reliable ICO platform [which provides powerful] tools to the token issuers, and to the ICO contributors.”
To have any hope of achieving these lofty objectives, the team seeks to:
“Create and provide a dashboard to security token issuers…
“A space for issuers to manage their investors (subscription phase and ongoing) … and for transactions and corporate actions: such as dividend payments and buybacks, or announcements to investors.”
Long Term Partnerships
Luc Falempin is something of a veteran in commercial leadership, despite having accomplished many of his achievements within a short period of time.
“I have been an entrepreneur for almost a decade now across various e-commerce, software, marketplace related markets… [accumulating] a deep experience in high-transaction-volume management, and multi-party platforms…
“I have also been involved with several ICOs, including Amchart and Verasity.”
Verasity in fact is not only a former associate to Falempin, but one which he has brought forth to the Tokeny project also. It is an organisation which recently concluded its public funding stage, due to having quickly accomplished their soft-cap goal.
On the Verasity website, the project team advertises it as a system which will:
“[Power] the New Era of Blockchain Enhanced Online Video”
According to Falempin, many team members and advisors involved with or orbit Tokeny represent the continuation of strong, long term relationships that had been brought over “from [his] previous companies.”.
This extends to many of the company’s leadership team also, a well matched combination of professionals who possess a combined expertise and experiential wisdom, spanning multiple industries and disciplines.
“[They were] selected because of their (and my) unique networks.
“We can leverage [these] to continue the recruitment and sourcing of some of the best talent from the web industry, and from the financial industry.”
SICOP: The Sustainable Initial Coin Offering Protocol
If you read into the Tokeny / Verasity relationship in the press, you might notice mention of the latter’s recent accomplishment of gaining ‘SICOP’ certification: an acronym for ‘Sustainable Initial Coin Offering Protocol’.
SICOP is a proprietary regulatory framework created by the Tokeny team for their forthcoming trading platform and serves as a core component of their features arsenal.
Falempin describes it as a fantastic
“guarantee of quality for us [Tokeny], the issuer [or provider], and the investors.”
The system’s compliancy assessments are to be enforced primarily utilising human-authentication, especially for escalated claims.
This is to ensure to continued operational integrity and approval of smart contracts implemented within each participating issuer’s projects.
To ensure this, he says that:
“each smart contract we deploy is third-party tested for security reasons. It’s just one of the many conditions demanded for SICOP compliance.”
Cybersecurity and Smart Contracts
Tokeny (on its website) boasts to be the “only company dedicated to providing a secure end-to-end platform” for cryptocurrency investments at ICO and STO level. The latter term stands for ‘Security Token Offering’.
When asked about where he feels his platform falls in amongst its blockchain-as-a-service peers in this light, Falempin says that:
“Most companies working within ICO space claim to provide every kind of services for ICOs: from whitepaper, to tech via marketing and legal.
“At Tokeny we focus on the tech and select each project very carefully.”
Smart contracts have become somewhat ubiquitous in the current blockchain community of ICOs and other such projects, however they are mostly often used for automated exercising of mutually agreed terms with regards to utility functions.
SICOP utilises smart contracts for both purposes and Falempin says that
“The smart contracts are the brains behind all of the web interfaces we build.
“They provide security through guaranties and transparency to investors: with automated management and clients.”
Building on Progress
Tokeny has carefully opted to forgo a ‘trial and error’ approach to creating their regulatory framework; instead deciding to
“Work on top of reliable and established standards and protocols: ERC20 compliant tokens and Open Zeppelin, for example…
“With security tokens there is currently no standard on the market, however we have seen several good practices beginning to emerge.”
In this light, Falempin continues to claim that the team optimistically perceives themselves
“as a precursor for future change, whilst maintaining a dynamic level of compatibility with our potential peers”
The Big Picture
In light of their proposed future plans as viewable on either their homepage or across their social media pages (such as Twitter, a Telegram group, Medium, and more), these words from Luc Falempin ring particularly true
“So far, we’ve established a unique positioning on the market for ourselves – although we are also aware that we must remain vigilant and flexible…
“the market (of course) is evolving very fast.”
As he continued that
“Much alike many other organisations that operative within disruptive markets, we aim to become one of the primary instigators and market-leaders / exemplary institutions of this (relatively) new value-chain.
“Starting with the issuance of our tokens: we believe that we can help define standards and good practices on the market – and become a key player in the market over the following years.”
A more topical perspective of the potential value the services provided by Tokeny may deliver can be provided through consideration of recent negative press affecting traditional exchanges.
Just look at the recent allegations levied against popular ratings aggregate Coinmarketcap regarding the intentional publication and broadcast of incorrect or inaccurate trading data.
Such comes adjacent in importance to reportage on a all-but-proven hack which affected Binance just recently also.
Financial Security, Due Diligence, and KYC / AML
Another leading boast which is clearly noticeable upon looking at the team’s homepage is Tokeny’s prioritisation of “bank grade KYC and AML” (AKA ‘Know Your Customer’ and ‘Anti Money Laundering’) standards.
Luc Falempin elaborates that they:
“have integrated accredited / regulated KYC solutions to ensure the issuers can identify their respective token holders properly and maintain compliance.
“Our process is to verify an investor – with the majority of jurisdiction depending primarily on the issuer’s decision-making, as well as the investors themselves being segmented by investor-type (individual, accredited, institutional, etc.).”
Crypto Assets x Old Money: Bridging the Gap
By introducing industry-leading tools and features which acknowledge the requirements of both investors and token issuers, Tokeny appear to have a great chance of successfully bridging the gap between cryptocurrency and the traditional finance sector (fiat).
A great result of this would be an influx of new revenue into the market – assuring mutual benefits for all invested due to increased across-the-board coin values.
At present, Falempin claims that Tokeny
“ha[s] a huge demand from closed end funds (real estate, hedge fund, etc.), because we believe that tokenizing our shares will bring more liquidity and inclusivity to our investors…
“We also receive demands for asset backed tokens (art, gold, etc) …
“Of course, the ICO market is still growing as well.”
Featured image courtesy of Shutterstock.