FinTelegram’s Stance on REAL-TOK: A Security Token by Design!

tamir
Fri, 02 Feb 2024 11:09:42 +0000
Black Compliance, Crypto Schemes, ticker, Lukas Koch-Hochmuth, Peter Kilian, REAL-TOK, Ronald FRANKL, Thomas Wagenhofer

In recent discussions surrounding the classification of the REAL-TOK token, FinTelegram has taken a firm stance, designating it as a security token. This classification has sparked debate, prompting further explanation of our position. FinTelegram is committed to providing precise, fact-based reporting, and our analysis of REAL-TOK is grounded in thorough research and evidence. We maintain our Black Compliance listing and warn potential investors.

Failed DMCA Complaints

The REAL-TOK operators filed a DMCA complaint with Google about the FinTelegram reports and wanted to remove the articles from the search results. Following a counter-notification, however, Google rejected this complaint. We are now discussing the accuracy and conclusions of our reviews with the REAL-TOK people’s Austrian lawyer, Ronald Frankl (website).

Look At The Facts

The promotional strategy employed by REAL-TOK, through its website and press releases, explicitly promises investors substantial returns. Specifically, it forecasts a tenfold increase in the token’s value from an initial issue price of €1 by 2024. Such promises of high returns, alongside presentations of the token as a high-appreciation investment, are fundamental characteristics that lead us to classify REAL-TOK as a security token.

Read our REAL-TOK reports here.

Moreover, REAL-TOK is marketed as an investment in tokenized real estate, implying that token holders gain fractional ownership of real property. The promise of passive income and profit-sharing from the sales of real estate projects further solidifies its status as a security token. The project also offers staking options promising up to 10% annual interest rates, aligning with the U.S. Securities Exchange Commission (SEC) and European regulators’ definitions of securities products.

Our network of international real estate companies will accept REAL-TOK (RLTO) as a currency, and this ensures a high demand for the token. Staking will also be implemented on the platform. This allows investors to benefit additionally from 5% interest p.a. Up to 10% for holding the RLTO token.
REAL-TOK press release

The application of the Howey Test, a criterion for defining investment contracts, leaves no room for doubt: REAL-TOK fulfills the qualifications of a security token. The operation of REAL-TOK within Austria suggests that the Austrian Financial Market Authority (FMA) is the pertinent regulatory body to assess and confirm this classification. We anticipate that regulatory approval will be deemed necessary for REAL-TOK, reflecting its inherent nature as a security token.

Despite the issuer’s Vienna-based address, the project’s choice to issue a crypto token through entities in Georgia and Dubai raises additional questions about its structure and aims. The issuers around Peter Kilian, Lukas Koch-Hochmuth, Thomas Wagenhofer, and their partners are located at Akademiestrasse 2/10 in Vienna.

Our analysis has revealed explicit promises in REAL-TOK‘s press materials that real estate assets will underpin the token. These assurances are not fabrications but conclusions drawn directly from the project operators’ own statements.

Furthermore, the white paper may mislead investors by depicting real estate projects, especially those associated with Klosterneuburg Abbey. The documents imply ownership by REAL-TOK operators, yet only building rights have been granted. This could potentially deceive investors about the actual nature of the assets involved.

Concerns are also heightened by the backgrounds of individuals linked to the REAL-TOK project. Prominent promoter Thomas Wagenhofer has a history of convictions for fraud and theft. The involvement of such individuals in a project aiming to raise €1.2 billion necessitates public awareness.

Conclusion

In summary, FinTelegram’s review of REAL-TOK is a comprehensive analysis substantiated by available information. Our classification of the token as a security is based on its promise of returns, its nature as an investment in tokenized real estate, and the regulatory precedents set by both the SEC and European authorities. We remain open to dialogue and are prepared to defend our findings, ensuring our readers are well-informed and protected from potential investment risks.

Additionally, we maintain our blacklisting of the REAL-TOK scheme.

Share Information

If you have any information about REAL-TOK, its operators, and its facilitators, please share it via our whistleblowing system, Whistle42.