TribeOS Ltd has announced a security token offering in Bermuda — the second token to be approved under the island’s new cryptocurrency regulations.

It is also the first security token offering, or STO, under the Initial Coin Offering Act.

The company calls itself the world’s first digital advertising marketplace designed to offer advertisers and publishers a platform where they can run secure, ad fraud-free campaigns using “a truly transparent platform”. Its token is called “FIRE”.

A Ministry of Finance spokeswoman confirmed the approval of the issuance.

“In accordance with the issuance approval process the offering was processed by the Registrar of Companies and reviewed and approved by the Minister of Finance,” the spokeswoman said.

Matt Gallant, chief executive officer of tribeOS, said: “Bermuda’s approval of the FIRE security token offering is yet another signal of our rapid trajectory of innovating new solutions for investors, advertisers and publishers. And we’re just getting started.”

In August, the company announced it had raised $3 million in seed funding from Bitmain Technology, a developer of bitcoin mining products.

The funds were to be used to build tribeOS’s core team and develop its marketplace.

With its new security token offering, tribeOS aims to secure more private funding for the development and deployment of its digital advertising marketplace this year.

In its statement, tribeOS said: “Bermuda has set itself apart in recent years in its substantive commitment to legitimising digital assets like cryptocurrencies and token offerings.

“It has made considerable investments in developing a substantial regulatory body to help integrate digital assets into global markets, and passed two new acts of legislation designed to govern digital currencies: the Initial Coin Offering Act, 2018 and the Digital Asset Business Act, 2018.”

The company has pointed to industry statistics that show $51 million is stolen each day from digital ad programmes through ad fraud robbery. Online advertisers often pay a fee based on how many times their advert is viewed or clicked on. Ad fraud can take the form of fraudulent clicks, spambots and phantom views.

Mr Gallant said: “Having personally been robbed of millions due to ad fraud I wondered … how many other marketers suffered the same fate? Unfortunately, my suspicions were confirmed.

“Is more education needed? Absolutely. Bottom line, ad fraud crime was impossible to stop before blockchain. And that’s exactly why tribeOS is building the ultimate, ad fraud-free marketplace.”

Last month, Mr Gallant said: “For years we waited for someone, anyone to tackle ad fraud head on. And we’re still waiting. Since the digital ad industry refuses to act, we will. The age of black box-style secrecy with digital ad campaigns is over. The new era of radical transparency is here and tribeOS will lead the way.”

In its statement announcing its STO, the company yesterday said tribeOS “will cost-effectively solve the ad fraud problem via a full-featured suite of breakthrough software tools. The tool suite features AdShield, that stops bots and fraudulent clicks; Gold Lantern, which provides bulletproof tracking and analytics; and a blockchain-based immutable ledger that delivers radical transparency of transaction data that can’t be manipulated or faked”.

• TribeOS has a website at https://www.tribeos.io/

• This story has been updated with the Ministry of Finance’s comment to confirm the approval of the token offering