Varys Capital is pleased to announce an investment in Brickken. Brickken’s mission is to bring unrestricted self-crowdsourcing to the public through the use of security token offerings, allowing individuals to raise funds for any project they choose without fear of payment processor interference.
Crowdsourcing allows a community to come together and pool resources to launch a product that may not have seen the light of day otherwise. The rise of crowdfunding platforms over the past decade has brought with it a concern that these platforms may exert control over the type of projects allowed on the platform. This has evidently come to pass over the past couple of years, and made it clear that a truly community-driven and free approach is required. While Brickken will require individuals and businesses to comply with local laws and regulations where they are located, there will no longer be any fear of being baselessly “vetoed” by a traditional payment processor or financial institution.
Brickken operates on a security token offering (STO) model, which allows users to assign value to real-world financial assets and use a blockchain-based ledger to process and store transactions. However, there also exists what is known as the “STO trilemma” which suggests that developers are forced to make tradeoffs between security, scalability, and decentralization. Brickken’s approach is to make the process as easy and plug-and-play as possible, simplifying the process down to just a few steps, as well as connecting users to community experts and investors.
Brickken operates on a decentralized app (DApp) that will allow users to register with an email address and create an STO offering (debt or equity), and establish its tokenomics, maturity, term, rights, and yield to investors among other situations. Its purpose is to connect the dots between the legal requirements and the decentralized application, while streamlining the process and making it as easy as possible for end users. The platform’s code will also be stored in a public, open-source Github repository, which will allow for third-parties to verify and audit it and help establish a community of users to further develop its mission.
In addition, Brickken contains an innovative workflow for implementing KYC/AML regulations as well as utilizing a Uniswap pool to provide scalability. Transparency is a core tenet of Brickken’s philosophy, and its purpose is never to flout laws and regulations, but to democratize crowdsourcing and prevent heavy-handed market players from exerting undue control over it. Regulations will be applied as per the local laws of the jurisdiction the asset is based in. While the implementation of securities over many diverse jurisdictions has always been cumbersome, using a blockchain-based solution provides immutability, transparency, auditability, and traceability in a manner that is accessible any time of the week, day or night.
Brickken also provides many benefits to investors, such as a harbor to store funds that are not subject to the miserably low or even negative interest returns offered by traditional banks, even before inflation and monetary policy is accounted for. The tokenization of assets could potentially unlock trillions of euros in illiquid assets and vastly increase market liquidity and depth and bring the market to retail investors at large, much of which was previously available only to investors with specialized knowledge or access.
Historically, investors have shied away from projects that are deemed “too political” and have not well tolerated small to medium sized investors when it comes to illiquid assets. Brickken aims to bring crowdsourcing options to these underserved markets in a transparent, compliant, and beneficial manner.
If you have questions about our fund or would like to be sent investor documents, you can contact our investor relations department at [email protected].
