Block Europe is thrilled to announce that Craig Mc Gregor was recently interviewed by Berna Bayindir for security tokens, new projects, DSTOQ’s concept and more!
1)What is the main idea and purpose of DSTOQ?
The concept behind DSTOQ is to build a licensed stock exchange for investing into security tokens – a platform where investors can use cryptocurrency to buy real world assets.
2)When and how was the idea born?
More than two years ago, Christian (Nagel) and I founded the company. We looked at real problems in the world and what we identified was a lack of access to the capital – a lack of movement offing basically value across borders. We realized that blockchain technology was a good piece of technology to solve that problem. Our concept was born out of a problem that we saw in the world.
3)What is your business model?
The business model is to take a stock exchange business model, revolutionize it in a lot of ways from a technology perspective and then to create a global platform. There are two parts of the business. First is the trading platform that is a peer-to-peer, fully decentralized, with everything on chain – we never hold our customers’ funds and we charge trading fees like any other exchange, albeit minimal – that is how we monetize that. The other side of the business is the actual tokenization. You can trade things that we tokenize. Very importantly, we are going to be doing IPOs – taking private companies to public.
4)How does the company make money?
We make money on trading fees. Our real value proposition is the cross-border game. Some companies charge 10% in listing fees, which is a huge number. We will have a significantly lower listing fees for companies and especially in emerging markets we might even have fully subsidize it, depending on how much revenue we are making from the trading fees.
5)What is your target audience? To which part of the blockchain community you provide your services?
We have two distinct audiences. The first one is the crypto industry itself and the second one would be the emerging market investors. For the crypto investors, the platform is very well-positioned, because crypto investors can use our platform to invest into the token economy and to diversify their portfolios. In addition, DSTOQ offers emerging market investors who experience super high inflation the opportunity to diversify.
6)DSTOQ’s headline is “Exchange without Borders”. Is there any border you cannot cross?
At the moment, we are not going to be serving customers in the United States or China as there is less certainty in those regions and we want to protect our customers. But I think exchange without borders speaks very well for the company itself. It is one of the best use cases of crypto exchanges all around the world.
7)You already have partnerships with some tech companies. Are there any other potential partnership requests?
Yes, absolutely. We have tech partnerships with æternity and Stellar. We have built our exchange and tokenization on top of Stellar’s blockchain. It has all of the functions that we need. With æternity, we bring real world data into the blockchain and confirm all of the information there. There are still some options, but we feel very settled on the tech side.
8)How is the competition for DSTOQ in the market?
There are companies that are making a lot of claims, but I am not going to talk about particular projects, that is not in my moral code. But what I will say is that when it comes to competition, one of our biggest difficulties is a lack of education. A lot people might not have a very in-depth knowledge of capital markets or laws around security trading or any of these tokenization topics. Therefore, we don’t make claims if we don’t deliver. We are launching the platform by the end of the year and it will be an app, available on both iOS and on Android. We will also have a desktop version coming next year and when it comes to competition, I have not heard anything that is going to happen anytime soon.
9)You have talked about offering security tokens at Berlin Blockchain Week, could you explain a bit more about this plan? And what are the main challenges?
Sure. In terms of offering security tokens, we are starting first with pre-existing securities that we will tokenize. In a second wave, we will do security token offerings, which is basically companies issuing equity directly on the chain. We also have two key criteria; the first one is that we can accept cryptocurrencies and the second one is that we can actually run what is called a “securities depository” on chain. When it comes to security tokens, it is crucial that there be a legal link between the owner of the security token and whatever it is supposed to represent. This is how we offer security tokens.
10)What is the feedback of potential investors?
The feedback we are receiving is very good. Investors have lost money on utility tokens are now looking at new models of investment. Security tokens are super attractive for a lot of people because they are not just based on utility, but on underlying value that is more robust and solid.
11)Is DSTOQ targeting emerging markets as well as Africa?
Absolutely, emerging markets, including Africa, are a primary focus for us. We identified seven to ten key markets including Argentina and South Africa – I know the South African market very well being a native myself – the country is quite supportive of crypto and ranks as the top country for Google searches on Bitcoin. We are also very interested in Ethiopia, Uganda, Rwanda, Kenya, Philippines, Malaysia, Vietnam, Thailand and more. We identify countries that would most benefit from increased financial inclusion, meaning access to financial products. India and Turkey are also very interesting markets for us where we see massive opportunity.
12)Explain the DSQ token and for what purpose can it can be used?
Sure, the DSQ token is our utility token that can be used for payment to purchase security tokens on our platform.
13)What are the next big milestones for DSTOQ?
The next big milestones is our product launch, which will first be available as an app. We have our product at the proof of concept stage. Other key milestones are expansion into emerging markets. We are very excited for the next phase in our journey.
Thank you to Craig Mc Gregor, CEO of DSTOQ for this interview.
Author: Berna Bayindir
Photo Credit: DSTOQ, Pixabay