Stobox Monthly Report | March, April, May 2022
Hello Stoboxians,
We are pleased to release Stobox’s monthly report for three months — March, April, May — combined. This report helps Stobox investors, team members, fans, and regular users track the company’s progress, achievements, and challenges.
Before we go into the working details of the development of Stobox companies, I would like, first of all, to tell you what is happening in Ukraine 🇺🇦 now and how it affects life in general.
In addition to self-help, we recommend the DAO fund to those who are not indifferent.
🇺🇦 Unchain.Fund
Unchain is a charity project created by blockchain activists. Our goal is to break the chain of war that the Russian Federation started against Ukraine. Your support helps us raise and quickly distribute funds for humanitarian needs. Let’s help the people of Ukraine get help when they need it most.
СHILDERNS OF HEROS !!!
In this section, we cover the main updates and developments of Stobox in the past 2 months. As usual in our reports, we divide the activity into the main areas of activity:
Tokenization & STOs
DS Swap & STBU
Marketing & Business activities
Progress Chain DAO
Tokenization & STOs
By February 2022 we have successfully implemented 4 tokenization projects of private companies, and 20+ turn-key tokenization clients are in the pipeline. As you may know, the process of Security Token Offering (Tokenization) may take on average from 3 to 6 months including all necessary legal steps. All four clients are using Stobox DS Dashboard to issue and manage security tokens. You can learn more about our client’s businesses and investment proposals.
Hard-cap - €3,000,000
All of the aforementioned customers have confirmed entering the secondary market on the Stobox DS Swap. The product is in development and testing and will be ready for release in the second quarter of 2022. Swap for securities and tokenized assets has a number of differences from standard solutions from Uniswap or Pancake. In the case of security tokens, the swap must take into account KYC / AML and other regulatory features of different countries. Stobox DS Swap will be available both for security tokens and regular crypto assets, like Ethereum or Tether. Undoubtedly, we have included Stobox Token in the product. It pays commissions for using the product. Based on DS Dashboard and DS Swap, DeFi solutions will be developed for traditional companies that have previously tokenized their assets/securities.
Meanwhile, on the consulting front, we have expanded our range of services. Quite often clients come to us with requests related to STO, but in the process, we find out that a non-security token is more applicable to their structure. Now we provide consulting not only in relation to STOs but also in regards to almost any questions related to digital assets, including but not limited to:
DAOs: governance, regulation, technical aspects;
NFTs: regulation, technical, operational, and marketing aspects;
Utility tokens: regulation, business model, operations, liquidity management, marketing, tokenomics.
Expanding the range of services allows us to deliver a more customized service to clients and assist a higher number of those who come to us. This drives down the average customer acquisition cost.
Expansion of consulting scope was accompanied by rising maturity of the consulting team. As new analysts became more experienced, they became able to handle more complex requests.
Key points:
Stobox is currently awaiting the DLT service provider license from the DMCC regulator of Dubai. This license allows Stobox to be present in Dubai’s technological arena and provide services via DMCC.
Despite operational difficulties, we have successfully released DS Dashboard v.2.17.18 which includes:
Multichain capabilities. I.e. Security Tokens can be issued on any EVM-compatible chain (Polygon, Binance Smart Chain);
Atomic Swap for Security Tokens. I.e. The after-sale distribution is done automatically via the smart contract, without the manual compliance by a corporate manager;
Driving License support for KYC procedures;
Redesigns and UI improvements.
Our team, together with a number of partners from Dubai, is planning to hold a specialized event dedicated to the tokenization of assets. This topic is very much in demand by representatives of large businesses in the UAE and Saudi Arabia. Today we are working on a number of asset tokenization projects, and our goal is to provide a transparent and trusted instrument for the primary and secondary offering of tokenized securities, in a fully regulated environment.
STBU or Stobox Token is now being embedded into DS Dashboard and DS Swap as a utility token to unlock several non-core functions. This creates additional demand for STBU and results in its price growth.
Crypto & Exchange & STBU
Many of you who closely follow the development of the company and products know that the team has been working on restoring balances and compensation to token holders for the last 2 months. This greatly negatively affected the price of the token, which has a very negative impact on the expectations of the community. We are aware of this and we apologize.
Due to the fact that most of the technical team of the exchange is located directly on the territory of military operations, we have decided to freeze the work of the exchange. This is done in order to save the funds of our clients. All funds are securely protected by Fireblocks, while the exchange itself was stopped. The inability to ensure the safety of the exchange due to the ongoing war in Ukraine forced us to postpone the project for an indefinite period. Unfortunately, we are talking about the fact that some of the developers working on the project left to fight defending the country. In such circumstances, it is impossible to adequately implement the project.
I assure you, Stobox Exchange is an integral part of the company and Stobox products and its work will be restored. Alternatively, we work on turnkey solutions for partnerships. Obviously, this does not give strength to the token, since its utility is currently on pause, however, we do not see problems in the long term. The Stobox company is functioning, the team is working on internal and client projects, income is generated through the implementation of tokenization and consulting services.
After the normalization of the token rate, we will restore trading on Uniswap and Pancake.
Key points:
All operations on Stobox Exchange have been paused for an indefinite period;
All funds are safe and stored on Fireblocks infrastructure;
Stobox Exchange development will be continued with the new dev team outside Ukraine.
Marketing & Business activities
Our activity is divided into 2 areas: tokenization and crypto. While we are experiencing temporary difficulties in the crypto area, the main focus has been shifted to the processes associated with tokenization, namely, what brings a stable income to the company.
Key points:
Already next week, from March 20 to March 23, Stobox is participating in the most significant blockchain event - the Sigma AIBS Blockchain Summit. We have prepared a customized booth space for communication with partners and clients. We are expecting two delegations from our clients to discuss a closer partnership regarding tokenization. More than 3,000 participants plan to attend the event, and we know that the topic of asset tokenization is one of the most interesting areas of Web-3 for companies and institutional market participants.
Over the next 4-6 weeks, in Dubai, we plan to hold a meetup event dedicated to tokenization and Progress Chain. The participants will be representatives of large businesses, professional financial institutions, specialized lawyers. Our task is to gather professional market participants to launch the Progress Chain project, as well as to attract attention to Stobox tokenization projects.
Stoboх Technologies Inc. has finalized a report for investors in Security Token - STBX. The report is published in DS Dashboard and is available to all investors of the company.
We are working with a number of UAE-based regulated funds and family offices to close the STO investment round for Stobox Technologies Inc. All detailed information about the plans and features of the company's development is presented personally to the relevant investors. Having closed the investment round, we plan to invest no more than 10% in the purchase of STBU utility tokens on the market. The price impact would be substantial and therefore we, as Stobox management, would reduce the damage that occurred recently.
The last thing to mention is the fact that we have become the best startup in Los Altos (USA) by Hackernoon. Quite a minor event for our company, but we are grateful for the support and appreciation of our work.
Progress Chain DAO
The work on the Progress Blockchain project consists of two main areas: technical and business. Systematic work in all directions will ensure the release of the project with the highest expectations.
Technical development
At the moment, we have described the basic requirements for the network and built an architecture that should fulfill our plans. This is to describe the product development plan and start the development process.
Unfortunately, due to the war, we cannot ensure the work of a dedicated team, rather, on the contrary, our task is to find blockchain developers outside of Ukraine and attract them to work in the project. This process is being delayed due to the very high demand for such experts and their exorbitant cost.
The core Whitepaper document was recently published and contains all of the comprehensive technical documentation.
Business aspects
Unlike conventional blockchain networks, building a network for tokenized assets and regulated participants is a long-term business development effort. Our task is to attract to cooperation a number of organizations that will make the first list of DAO participants who are ready to offer their services on the Progress network. Tokenization providers, lawyers, CRPs/AMLs, financial auditors and other professional participants are an integral part of the health of the network. At the moment, we have already received confirmations from more than 10 professional participants. We are also working to ensure that the concept of the network is supported by specialized funds interested in the development of on-chain regulated finance and permissioned DeFi.
Conclusion
As you may know, numerous businesses in Ukraine are going through difficult times. Even large IT companies are losing millions as well as their teams, not to mention businesses in other industries. Our team copes with all difficulties with dignity. We know that many of you are frustrated by the large drop in the price of the token, the downtime of the exchange, the delay in your expectations. We understand this and we apologize. But also I and the whole team at Stobox want to assure you that we do not plan to abandon our plans and ambitions. All our plans will be realized, and accordingly, your expectations will be justified.
Stay with us. Support Ukraine 🇺🇦
Write us at info@stobox.io or in our group chats.