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Sologenic - getting a license to trade tokenized stocks?


Treehouse
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Question out to the XRP chat folks - what do you think about sologenic? I just came across it recently and find it quite intriguing. The online presence is a bit confusing since it seems that there is a developer community managing the coin, but a lot of links go to a company that is in the process of setting up a DEX and getting the required EU financial intermediary licensing to support the trading of tokenized stocks. I find it really interesting in two ways. First, I have been wondering how tokenized stock trading (which I assume is essentially a derivative rather than actual rights to stock ownership) would interact with the traditional world of equity trading. I can understand the use cases of more obscure derivatives in traditional markets, but don't quite see why one would want to trade a token linked to a stock price as opposed to actually trading the real stock with actual ownership rights. The friction in traditional markets is so low, I don't see the advantage of a shadow blockchain solution.

Second, I am really interested to see how this develops as a very clear fusion of consumer-facing blockchain product that is deeply embedded into traditional financial markets. 

I assume that the solo coin has broader use cases beyond this specific company/App, although I am not too clear on the specific advantages that it has over other tokens/chains. I still need to do more reading on it.

Any thoughts from others?

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I wouldn't touch Solo, however tempting it looks! The exchange is basically a scam, which has been mentioned before. Try to sell Solo. Was really difficult some months ago. The related exchange Coinfield looks like mainly doing wash trading. I tried to unload some Solo, boy was that difficult! You get easily locked out for some time if you delete an order. What started as a promising project looks like a scam today. Careful with their promises, might be a last exit scam attempt before everything crashes there.

But this airdrop might change things a bit and they get their act together.

Edited by panmores
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I respectfully disagree with @panmores

I'm quite impressed with Sologenic's growth and development. I find their software and commitment impressive. I am pretty taken by the development of their entire ecosystem this last year or two. It's come a long way and shows no sign of slowing down. 

Furthermore, actually moving operations to another country for more favorable regulatory climate takes faith in your tech, recognition of regulatory limitations, and desire to move the ball forward ... a path that Ripple itself would have chosen if it weren't so endowed with resources. 

Among other reasons their tokenization of stock is needed/wanted is for 24/7 trading. Their platform is also poised to facilitate cross-value trading, melding blockchain with traditional securities .. and is a big step toward the 'internet of value' that we've all been looking toward. Upon approval they will offer stablestock (Did I just coin that term?) at a 1:1 backing with real world assets. That's pretty cool. 

I wish them well, and have no problem scooping up a chunk of SOLO ... 

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if they ever change their Currency Hex code (534F4C4F00000000000000000000000000000000) to something like "SOLO" I might take them seriously...until then so many reports that it's a scam that I stay away from everything they do...

BTW...their upcoming airdrop gives SOLO owners a huge advantage over XRP owners... and who do you thing holds all those SOLO tokens....yeah right! A good way for the team behind this project to put more into their pocket by "showing" their engaging the community..

 

@RobertHarpool "Furthermore, actually moving operations to another country for more favorable regulatory climate takes faith in your tech"

I'd say they left Canada to Estonia because their were under the radar of authorities their...not because they were looking for a more favorable environment to develop...but you might be right...they can do whatever they want now in Estonia and nobody will stop them...is that good or bad? Everyone can have an opinion on this...

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@thinlyspread Yes I have. Haven't had any problems. In fact I find the Sologenic portal to the XRPL DEX to be the best one for trading. I recommend it if you haven't tried it yet. I honestly prefer their iOS wallet to XUMM in many, many ways .. eg XRPL DEX trading build-in.  

@Malloy I've found Sologenic to be XRP-centric from day one. So, suspicion of them for engaging the XRP community for that reason isn't warranted. I mean, they are part of our community, not tangential leeches. 

Generally speaking, Canadian policies are de facto dictated by Washington D.C.  Sologenic is just another member of the tech diaspora created by Washington's incompetence. 

If Sologenic were a 'scam' as you allude to, then they are REALLY bad at scamming. How many years have they been running their platform and developing their website, phone app, white paper, blog, mission statement, policies, blah, blah, blah ... Maybe 3 now? ... (I truly don't know, but it's been at least 2 1/2 years since I first saw their name)

Drill into Sologenic.com (Securities tokenization) and Sologenic.org (XRPL DEX access, integration, etc.) for yourself. It ain't what it was when I first found them. 

This is a LOT of work just to 'scam' people ... Perhaps a re-visit is in order. 

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To be clear, I don't know anyone at Sologenic and never have. But I do find their work with/on the XRPL to be the most impressive of any organization, second only to Ripple .. OK, maybe that's overstated. I certainly put these guys in that pantheon of great contributors tho. 

 

 

 

Edited by RobertHarpool
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@RobertHarpool your point of "existing" and "developing" for years should be a good one...but I've seen too many "good" company traded on major US European and Asian markets that ended up being scams...I'm sure a few names come to your mind as you read this...

As for the "community"...I've chatted with many x-customers of their exchanges (same people on top of the SOLO project) and they lost a lot of money because - yes - they were scammed...when ever these people try to engage in social media they just block them and report their account so they get in trouble...they make deals to ensure they stay quiet like "we won't close your account if..." so most of the XRP community who had XRPs there for the FLR airdrop are just staying quiet at the moment (if they don't want their account to be closed)...I believe after the drop you might hear from some of them

I really wish this would be a good XRP-Centric project but because of some shady leadership I don't believe it is...I hope time will prove me wrong...

 

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@Malloy I'm a bit confused by your comments.

Sologenic.org isn't an exchange. They only provide access to the XRPL's DEX. 

You don't surrender your coins or keys to trade at Sologenic.org

There is no "there" for the former customers you chatted with to have XRP for the FLR drop.

There is no such thing as a customer account for Sologenic to close. (Unless you're talking about the asset tokenization side, but I'm not seeing that is up and running yet ... that they're still waiting for their license....the topic of this thread.)

By definition these customers you speak of would have had their XRP on the XRPL ... and kept in whatever wallet they use: XUMM, Ledger, D'cent, etc. ... which were the optimal places to have XRP for the snapshot. 

Is it possible that these people you chatted with don't understand the architecture/relationship between wallets like XUMM and a DEX like XRPL? How would they have 'lost money' unless it was a result of being a bad trader?

So, again, I'm pretty confused about why someone would tell you those things ... 

 

Note: If you're talking about an exchange named "Coinfield", I don't know anything about it. I don't think it's accessible to Americans, and I don't know the relationship with Sologenic. I'm only speaking of the interface and experience at Sologenic.org ... and this thread is about the project at Sologenic.com. I'm not for or against the SOLO coin because I can't yet rationalize it ... But I also have yet to appreciate a need for BTR at Bitrue, CLT at Coinloan, NEXO at Nexo, CRO at Crypto.com, etc. 

Edited by RobertHarpool
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Maybe I can offer a little light, but maybe also more confusion. There is a company called Sologenic that has a "core team" that appears to be a group of people who also run a company called Coinfield. The founder, Bob Ras, describes himself as the founder of the Sologenic ecosystem and the CEO of Coinfield. There is also another sologenic.org which is presents itself as having a "core team" who stewards the development of the whole ecosystem and they are the ones who apparently called for the airdrop. I haven't found any identification of the "core team" (although maybe I haven't looked hard enough), but I assume that it is the same people. Bob Ras is an entrepreneur who saw an opportunity in blockchain - tokenization of stocks and using blockchain to go around the restrictions on trading across borders and jurisdictions through the traditional brokerage system. I didn't see anything that went into depth about his background other than some vague statements about having started some businesses and successfully exited.

I'm undecided on my views. The project concept is indeed a very good one and, if executed with integrity and skill, would be very powerful. However, they have set up a seemingly complex structure of entities and this is hardly a "trustless venture." The whole success is dependent on having ties into traditional financial institutions, trusting the team to have secured the right licenses, and placing your faith in the quality of their legal contracts. Then there is also the tech side. There are seemingly 200 million coins in circulation, so this airdrop will essentially put all the remaining coins into play. I would guess that the posting above which speculates that a large percentage of these will end up in going back to people connected to the project under the cover of airdrop.

I read their White Paper on the sologenic company and it is clear enough to be convincing that they have a solid idea and plan, but not detailed or transparent enough to allow the readers to really evaluate the project, the economics, or the vested interests. Having read the White Paper on the company, it's not clear to me what benefit (other than long-time solo holders getting more coins) the airdrop brings to the project. I should add that the air drop has been decided by a core team that claims to be interested in the good of the ecosystem rather than an interest in securities tokenization project, but I haven't found any plans / white papers / road maps for anything other than the company.

So, on the balance, it feels more suspect than solid even though I would like to believe in the project.  

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I'm an American so I'm cut off from Sologenic's synthetic stocks, but I bought 100 SOLO to support them when they launched their XRPL DEX.

I don't have much to offer on whether or not they're a good investment, but I would compare them to their competitors before you do so. I know of Synthetix on Ethereum and Mirror on Terra.

Edited by brianwalden
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To my understanding they are different from both Synthetix and Mirror in that those protocols create a token that tracks a price (so it is a type of derivative in my mind) whereas Sologenic is setting up a structure that allows you to have legal ownership of the actual securities. So it seems quite different to me (and preferable in many ways if they are able to set up a sound legal basis and if they are trustworthy as a financial services provider). I'm not sure if Synth and Mirror have some sort of collateral system linked to the asset such that a token representing a stock price has some intrinsic value tied to ownership of that collateral, but I haven't seen such in what I read about Synthetix. I haven't read much on Mirror.

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6 minutes ago, Treehouse said:

To my understanding they are different from both Synthetix and Mirror in that those protocols create a token that tracks a price (so it is a type of derivative in my mind) whereas Sologenic is setting up a structure that allows you to have legal ownership of the actual securities. So it seems quite different to me (and preferable in many ways if they are able to set up a sound legal basis and if they are trustworthy as a financial services provider). I'm not sure if Synth and Mirror have some sort of collateral system linked to the asset such that a token representing a stock price has some intrinsic value tied to ownership of that collateral, but I haven't seen such in what I read about Synthetix. I haven't read much on Mirror.

Oh ok. So Sologenic is basically tokenizing actual shares of stock to make them tradable anytime, anywhere. That's cool.

I don't know much about Synthetix, but Mirror uses collateral to back value of their mirrored-stocks. The tokens basically follow the stock price with a bit of a spread. It's similar to how Flare's F-assets will work.

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