Brickken was co-founded in 2020 by Edwin Mata Navarro and four others to help companies tokenize their assets through fractional ownership.
In a recent interview with an AIBC reporter Jean Michel Azzopardi, Edwin stated that Brickken’s goal is to cut off the middleman and open up access to liquidity in the token economy.
Three years since its founding, Brickken has continued to build strategic partnerships with various law firms across the world in a bid to streamline its services and ensure regulatory compliance with securities laws.
In this interview, Edwin recently told Olayimika Oyebanji, Hackernoon award-winning Contributor, that tokenization, mass adoption, and web 3 legal compliance are the defining of Brickken.
1. Thanks for accepting my request for an interview. I would like to start with the question of whether tokenization is the next big thing in the crypto industry. Why are you bullish on it despite the downturn in the crypto market?
I am bullish on tokenization in the crypto industry because major financial institutions and brands are adopting the technology.
Despite the downturn in the crypto market in 2022, companies like JP Morgan, Hamilton Lane, WisdomTree Asset Management, KKR, and the Monetary Authority of Singapore are beginning to use tokenization for asset management.
Additionally, Goldman Sachs has recently implemented their own tokenization infrastructure, and consulting firms such as Deloitte, EY, BCG, and McKinsey predicts that the tokenization market will reach $16 trillion by 2030.
The data clearly shows that the tokenization market is gaining traction and becoming a key player in the blockchain industry.
2. Tell me about the co-founding of Brickken? What are its goals?
Brickken, along with its co-founders, aimed to make real estate accessible to retail investors by fractionalizing it. We began implementing this concept by blending securities, crowdfunding, illiquid assets, and easy access to provide attractive returns.
However, as we faced challenges and market changes, the vision evolved into the current Brickken, a token offering and management platform that offers blockchain-agnostic infrastructure for companies to mint, offer, and manage their utility, security, and non-fungible tokens (NFTs), enabling companies to easily manage their digital assets and participate in the token economy.
3. I have read many pitch decks on real estate tokenization. What I am yet to see is a true instance where fractional ownership is set in motion. What, in your opinion, are the obstacles to achieving the end goal of tokenization?
Many companies have struggled to make tokenization successful due to a lack of understanding of the legal implications of issuing securities and the full capabilities of blockchain technology.
Additionally, they have not effectively leveraged the decentralized nature of blockchain and integrated the best features of both web2 and web3.
To effectively implement tokenization, it is crucial to understand the interplay between security markets, crowdfunding, and blockchain technology, and how they can be blended to achieve optimal efficiency and value.
The high entry point and lack of innovation, not only from a technical perspective but a procedural one are why tokenization is often viewed as a theoretical concept rather than a practical application.
4. How can they be surmounted?
Lack of expertise in the matters around tokenization, and in the processes of token minting, offering and management of digital assets.
5. How does Brickken operate?
Our dApp provides a comprehensive set of tools for managing the token life cycle, from minting to offering and management of the token issued and funds raised.
Features include KYCs, cap tables, voting polls, real-time analytics, a custom sale web page generator, token distribution panels, and open API integration with other dApps and protocols.
Our platform streamlines the tokenization process and enables companies to fully utilize the benefits of blockchain technology. As a decentralized application, we do not act as intermediaries, allowing companies to operate on their own terms.
7. What are its achievements in the three years of its founding?
I would have to choose the following, in 2021 we got accepted in[to] Startupbootcamp Program, one of the most important world acceleration programs, we obtained the NEOTEC Grant, a top Spanish technology startup grant financed by the European Investment Fund ("EIF"), and we entered the Financial Sandbox in Spain for testing a security token exchange market.
In 2022, we raised two million euros and grew the team to 25 members, where 12 members of the team are lecturers in universities and business schools, and many have become speakers and given commentaries and interviews to news outlets.
8. The crypto industry has been heavily criticized for the lack of a viable framework to protect investors. What do you think should be done to regain investors' confidence?
This is a complex issue and companies need to ensure that they are following the applicable laws and regulations.
It is important for them to have internal compliance mechanisms in place to ensure that they are following all applicable laws and regulations, as well as to make sure that they are fulfilling their obligations to their investors.
Additionally, it is also important for companies to keep up with changes to laws and regulations to stay compliant, which many are currently in the process of being updated due to the 2022 events that happened in the crypto space.
Investors can only regain their confidence over time, through companies prioritizing compliance over maximum profit.
9. What is your prediction for crypto in 2023?
There is a need for increased regulation in the Web3 space to provide more stability, as more institutions get involved and banks start testing their Central Bank Digital Currencies (CBDCs).
Despite the efforts of many to drive mass adoption, the markets continue to be dominated by large corporations and governments.
10. Any parting words?
Blockchain is an unstoppable force, and it's only a matter of time before everyone joins Web3. Reports are confirming this trend is here to stay!