Introduction to Tokenization
The blockchain community has been passing around the concept of tokenization of real-world assets for years now. The idea behind tokenization is quite simple. You take any real-world asset and tokenize it by creating digital representations of these assets called tokens using distributed ledger technology like blockchain. It does not matter if the asset is tangible or intangible. This means you can tokenize practically anything under the sun.
There are several reasons why asset owners might want to consider tokenizing their assets but it all boils down to cost savings and adding liquidity to assets that can be considered illiquid. One good example of a great use case of tokenization is Gold. Just think of all the cost savings in handling and storage if Gold transactions are made digitally. Not to mention having immediate access to your digital gold which you can trade online 24/7 on exchanges.
Tokenization is also in line with one of the reasons why cryptocurrencies were created in the first place — making financial opportunities more inclusive and accessible to everyone. The tokenization of the Roe V. Wade movie is a good example of this. Have you ever fancied of becoming a producer of a movie? Now you can through this innovative budget raising mechanism Security tokens.
Roe V. Wade is an award-winning movie following the event about one of the most famous and controversial court cases in America. The movie is based on true events when a broke pregnant girl with a 10th-grade education named Norma McCorvey (now famously known as Jane Roe) sues Henry Wade, the district attorney of Dallas County for her right to have an abortion.
However, the motives of McCovey are put into question when apparently one of the proponents that instigated her to litigate has an ulterior agenda. Margaret Sanger, the founder of Planned Parenthood and one of the antagonists of the movie, wanted to reduce the growth of the African American population in the country. Sanger’s initiative was called Negro project.
Dr. Bernard Nathanson, the most famous abortionist of those times joined Sanger’s efforts to repeal anti-abortion laws. Sanger and Nathanson then recruited feminist Betty Freidman. Together they hatched a plan and found a perfect pawn in the person of McCovey (Roe).
In the courts, the protagonist sought to influence the Justices for a favorable vote by feeding them with fake pools and fake statistics from the mainstream media even to the point of onboarding Hollywood to do TV shows and movies about abortion.
There were very few people who are willing to step up to fight. One of them is Mildred Jefferson, the main protagonist of the movie. She is the first African American woman to graduate from Harvard Medical School. She joined the Catholics and others in the effort to educate Americans about the truth of abortion.
Roe V. Wade Token (RVW)
The RVW Tokens are tokenized bonds. These tokens enable investors to profit from the future “Roe v. Wade” film earnings. The main idea behind this initiative is to turn movie enthusiasts into movie investors. Funds raised in the Movie Token Offering will be used to finance the associated costs of the movie. According to their token sale website, film production is already completed but additional financing is required to execute distribution and marketing plans.
The tokenized bond of the movie is represented by RVW tokens and issued by RVW limited with the technical help and expertise of LCX which acts as the movie’s exclusive blockchain service provider. The tokens are ERC-20 tokens, issued in the Ethereum Network. A total of 5M RVW tokens will be offered at the nominal price of $1 US dollar per Token and total net proceeds of $5 million US dollars The tokenized bond rights are issued with a denomination of $1.00 USD (one US Dollar).
The tokenized bond rights are issued against payment to be received in one of the supported cryptocurrency assets: BTC (Bitcoin), ETH (Ethereum), USDC (USD Coin). Amounts received are converted into USD at the respective daily exchange rate, on which basis the number of RVW tokens to be allocated is calculated. The subscription period started last November 11, 2020, and ends automatically on October 31st, 2021.
The tokens will be backed by the gross proceed of the movie. The investment period is approximately 18–36 months with an initial release target of Q1/2021. There will be a fixed yield of 20% per annum. These tokenized bonds are only open to 5,000 investors making the minimum investment $1,000 USD (US accredited investors have a minimum of $10K USD). Those who will invest more than $500K will get Executive Producer credits, those with $250K investment get Co-Producer credits, and those with over $100K Associate Producer credits.
What are security tokens?
Security tokens like the RVW Movie Tokens are different from the usual Utility tokens issued on public blockchains. Utility tokens are primarily designed to be used for a specific use case or “utility” within its own ecosystem. On the other hand, Security Tokens are issued primarily as a right or claim to the future earnings of an asset. In the case of RVW Movie Tokens, it is the right for a prorated share of the profits of the Roe V. Wade movie.
In order to differentiate Security tokens from Utility tokens, we can apply the Howey Test. This test determines if a transaction represents an investment contract in which the investor is led to expect profits solely from the efforts of the promoter or issuer of the tokens. Since the RVW Movie Tokens made promises of an annual yield of 20% and a prorated share from the proceeds from the movie’s generated revenue, the token is considered a security token.
Many projects in the cryptocurrency space positioned their initiatives as utility tokens which later on deemed securities by regulatory bodies. EOS and more recently XRP are two prominent projects ted by the U.S. SEC to have held security token sales in the past without proper approval. Hence, it is better to invest in regulated security tokens lessening the risk associated with miscategorization of utility tokens turning into securities.
How LCX tokenized Roe v. Wade the movie?
The RVW token was developed, created, and deployed by LCX on behalf of RVW limited, the business entity that holds the rights for the Roe V. Wade Movie. LCX acted as a regulated token generator for the issuance of RVW security tokens for RVW limited. The security token was used as a financial instrument for fundraising similar to an IPO. RVW security tokens are backed by the gross-profits of the Roe V. Wade feature film wherein holders are entitled to revenue shares generated depending on the number of tokens they hold.
LCX is a registered and licensed token generator. The technology company was commissioned by RVW limited to develop, create, and deploy the smart contract for the creation of the security tokens on Ethereum. The contract address is 0xedc145278cc59e27562275654918880b830960a0 and can be view via the Ethereum block explorer Etherscan.
Instead of just providing a stand white-label solution for STO’s LCX is covering all aspects of public digital asset offerings. From legal setup, legal documents, security prospectus, development of the smart contract, token generation, purchase platform, and advanced KYC and token management solution. This end-to-end solution makes LCX services the most advanced infrastructure for digital assets.
Where can you buy RVW Token?
Interested buyers of RVW token can participate in the token sale by heading to the token sale website: https://sale.roevwade.com/ Those who plan to participate are required to fill out a registration form to create an account with LCX. The website also includes pertinent documents that prospective investors would want to read. These include the RVW Token Offering Memorandum, RVW Token Basin Information Sheet, and RVW Token Offering- Terms and Conditions.
Why you should buy RVW Token?
Here is the million-dollar question, why would anyone want to buy RVW token? Let’s be honest although many of the utility tokens crypto enthusiasts buy do not guarantee gains for their purchase all of them hope they earn something out of their purchase. Although they might purchase for the sole purpose of using it as a currency within a given blockchain system it is always better if these utility tokens appreciate in value or give some return right? If you are that type of person then you should seriously consider purchasing RVW token.
According to RVW all subscriptions will receive full payback of their purchase plus their 20% yield. However if the movie flop then there will be no proceeds, no payment in any form, or yield made. That is the risk of the investment. It is totally up to the investor if he believes the movie can make a profit. Like any other industry, there are risks involved.
Remember filming of the movie and post-production have been completed and all proceeds of the token sale will only be used for the distribution and marketing of the movie. Essentially they already have a working product that is ready for the consumption of the consumers. Watching the trailer of the movie gives the impression of a very engaging film with some interesting plot twists. Reading the synopsis made us want to watch the movie, good court drama movies are in short supply these days where most movies are geared towards sci-fi of action movies.
The RVW security token sale is a first of its kind in a regulated environment. This means there are fewer risks and the people involve in investing generally more sophisticated. It is up to you or your financial adviser to decide if the RVW token is the right investment for you.
Movie website: https://roevwade.com/
RVW Token sale website: https://sale.roevwade.com/
LCX Website: https://www.lcx.com/