Hong Kong firm to test tokenised concert stakes ahead of digital gold trading

People will soon be able to buy Ethereum-based investment tokens for concerts in March and April, laying the groundwork for the introduction of tokenised gold in Hong Kong, according to an industry leader. Esperanza Fintech Group CEO Dan Ronald Leung Wai-tsun said on Tuesday the initiative would test public appetite for tokenised assets through entertainment before expanding into gold and stablecoin products. “Tokenised investments or tokenised concerts are to prepare for tokenised gold or stablecoin execution [in the future],” he said. “It’s an investment that the public could see and enjoy.” Among the first batch of events are concerts featuring Cantopop singer Chris Wong Hoi-kun at the Hong Kong Coliseum on March 6 and 7, and another show by a yet-to-be-disclosed Korean boy band in Malaysia on April 11. Investment tokens convert a concert’s production costs and profits into small tradeable digital units on a blockchain. The model allows members of the public to invest in events directly, replacing the need for organisers to shoulder large upfront expenses. For instance, prospective investors can buy tokens linked to the Chris Wong concerts using Hong Kong dollar bank transfers. A set number of these tokens will represent 10 per cent of the total production costs of the two shows. They can be traded before the concerts take place, and investors will share in any profits afterwards, with Esperanza acting as the underwriter. Leung said the company was starting with a 10 per cent share as the investment model remained new, and both the market and the public needed time to adapt. He added that Esperanza could eventually cover the full production costs through tokenisation. Returns for token holders will depend on ticket sales and corporate sponsorship revenue – the higher the box office and sponsorship income, the greater the potential earnings. However, Leung cautioned that unforeseen expenses could push production costs over budget and reduce profits. He added that it had become more difficult for companies to invest large lump sums in concerts amid the current economic downturn and for organisers to secure bank loans. This investment model, he said, could help performers obtain funding earlier in the process. “In the past, when investments were needed for concerts, it was in the millions of Hong Kong dollars. Now, we’re representing [token buyers] to invest, and they could be paying just HK$1 or HK$5 [13 to 64 US cents],” Leung said. Leung added that geopolitics had become a key factor in investment decisions, so the company would, for now, avoid working with American, European and Japanese performers due to potential complications. Esperanza Fintech secured formal approval for its tokenised investment business from the Securities and Futures Commission earlier this month. The group also runs licensed gold trading and tokenised gold operations. Hong Kong continues to serve as a testing ground for new fintech and bullion products, with the goal of helping to internationalise the yuan and expand the city’s role as the world’s gold trading hub. Tokenised concerts are what the firm described this week as “an innovative financing and community engagement model for the live entertainment industry”, offering “a significantly lower entry barrier and [allowing] trade [of] the tokens in secondary markets”. Leung stressed that the firm was required to act as a gatekeeper by confirming concert details such as the venue, ensuring that performers had signed their contracts, and conducting due diligence before offering tokens to investors. Leslie Au, a veteran concert organiser and record label executive in Hong Kong, said tokenised investments could eventually support initiatives ranging from nurturing new performers to film production and the city’s major events once the model matured. He said the key would be for the company issuing investment tokens to take the lead in organising such projects and to invest at least 50 per cent of the production costs, with the remainder funded by sponsors or entertainment companies, to prove the model’s viability. “The next step would be to run something longer term as opposed to singular concerts, such as 10 meet-and-greets with stars of a hit television show across Asia … which could happen by quarter three this year,” he said, adding that more public education was needed.

Hong Kong firm to test tokenised concert stakes ahead of digital gold trading

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Hong Kong firm unveils crypto-based concert funding model, marking the city’s latest step in fintech innovation and gold tokenisation

Hong Kong firm unveils crypto-based concert funding model, marking the city’s latest step in fintech innovation and gold tokenisation