New crypto startup relies on decentralized trading of security tokens

After the FTX collapse and the disappearance of billions of customer funds in a spectacular financial hole, new projects put a strong focus on one value: decentralization. This also applies to the new crypto-startup Tokenwolf, launched today by a veteran Austrian Internet entrepreneur: Because a team led by Michael Gredenberg, who founded inode in 1996 with Peter Augustin, one of the largest Internet providers on the time, and later purchased UPC (now Magenta) has set itself the goal of enabling truly decentralized trading of security tokens.

Unlike many other cryptocurrencies, security tokens are something like digital securities and represent shares (or rights) in a property or company. As reported, a Styrian innkeeper launched a security token this year that allows interested parties to invest in his property (read more here). Tokenwolf also goes in a similar direction. The case is best described with an example: An apartment building in Germany (Görlitz) was chosen as a test balloon for the start: users can buy the GIMMO token – and thus a participation right that covers all the building’s requirements Brautwiesenstrasse der Gimmo GmbH by Michael Gredenberg. It also means that you can buy fractions of the property because 20,000 GIMMO tokens are offered at 13.50 euros per share.

Specifically, the tokens are used to buy the following: The apartment complex with 10 housing units and 591 square meters of lettable area must consist of 48% equity and 52% debt. 87% of the debt capital will be tokenized at a fixed rate of 1.83% in 2027 and made available to users by purchasing GIMMO tokens on the Tokenwolf platform. GIMMO tokens are traded against either USDT or USDC stablecoins. “As soon as a EUR stablecoin is available, trading will also start on it,” it says.

Styria’s host starts security token offering of its Heurigen

Tokens remain in users’ wallets

Tokenwolf was now supposed to make many other tokens tradable in addition to the GIMMMO token. And truly decentralized. “Tokens are always owned by the users, in their own wallet,” Gredenberg says – the MetaMask wallet is recommended. If a sale takes place, it is processed via smart contract. The trading platform supports all EVM compatible blockchains, such as Ethereum, Polygon, Avalanche, Fantom or Solana. As a trading venue, Tokenwolf earns a fee on sales. It is currently 1% for “makers” (ie offer makers) and 2% for “takers” ie. tender recipients.

However, Tokenwolf cannot be used completely anonymously like other decentralized exchanges (DEX) – a KYC process must first be completed in order to be used. All participants must verify themselves using a KYC/AML procedure before they can start trading on the Tokenwolf platform. Identity is verified via ID card copy, live video identification and proof of residence. In addition, according to Tokenwolf, the user’s own wallet addresses must be registered on the platform. This is the only way to meet legal requirements.

Black Manta Capital Partners as partner

Gredenberg Tokenwolf started together with fellow fighters Markus Hanny and Danijel Rac and their joint company REX Web3 GmbH and partner BMCP GmbH. This is a company from the Black Manta Capital Partners group of Alexander Rapatz and Christian Platzer – they received a license from the German Financial Supervisory Authority (Bafin) in 2019 to be able to carry out security token offerings. BMCP GmbH runs the platform for Gredenberg’s team.

“It solves the problem that classic DEXs such as Uniswap, Pankaceswap are not regulated, and security tokens, i.e. tokenized securities, are not allowed to be traded there. This has so far only been possible with CEX,” he says. “The target group is currently Web3 enthusiasts, who want to act in the spirit of Web3 with a self-hosted wallet and no longer rely on CEXs. In the future, this audience will continue to grow as hopefully more people become aware of the benefits of Web3.”

It is planned to tokenize additional properties. Gredenberg: “The target group is the entire market for securities tokens, which I believe has better chances than pure speculation with coins, since securities are backed by real values. Security tokens may soon surpass the “classic” cryptocurrencies.”

Security Token Offering: Black Manta Capital Obtains German Financial Services License

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