1. Executive Summary
Elmnts, operating at elmnts.io, is strategically positioned to simplify the process of buying and selling oil and gas royalties, thereby modernizing commodity investing for a new era. The company’s core vision is to unlock the untapped potential within the oil and gas sector by establishing a comprehensive tokenized commodities ecosystem accessible to investors. This ambition extends beyond current offerings, suggesting a future where a wide array of commodities can be traded within this digital framework.
The platform’s central offering revolves around providing investors with the opportunity to invest in tokenized real-world assets, with an initial focus on oil and gas royalties. This innovative approach allows investors to directly hold and trade these traditionally inaccessible assets within their digital wallets, seamlessly integrating them with their existing cryptocurrency and NFT holdings. This parallel holding of diverse digital assets caters to a growing segment of the investment community that is increasingly comfortable with blockchain technology and seeks diversification within the web3 space.
Key investment merits that will be further substantiated in this memorandum include the provision of easier access to real-world assets that have historically been difficult for individual investors to acquire, the enhanced transparency afforded by blockchain technology, the potential for diversified returns within decentralized finance (DeFi) portfolios, and the opportunity to tap into a substantial market represented by the $700 billion commodity royalties sector. The potential for integration with DeFi protocols could offer additional yield-generating opportunities for investors, further enhancing the attractiveness of this asset class.
2. Company Overview
2.1 Business Model:
Elmnts operates a blockchain-based platform designed to facilitate a tokenized commodity ecosystem, with an initial emphasis on mineral rights and oil & gas royalties. The foundation of this model lies in leveraging blockchain technology, which inherently offers transparency, security, and the potential for reduced transaction costs compared to traditional financial systems. The strategic focus on mineral rights and oil & gas royalties represents a targeted approach within the broader commodity market, recognizing the potential for stable income streams tied to existing production.
The platform’s core function is to streamline the buying, selling, and trading of these tokenized assets by significantly reducing the number of intermediaries involved in the process. This disintermediation is a fundamental advantage of blockchain technology, promising lower fees and the potential for greater liquidity for both buyers and sellers of these assets. The aim for enhanced liquidity is particularly noteworthy given the traditional illiquidity of assets like mineral rights, suggesting that Elmnts’ approach could unlock significant value by creating a more efficient and accessible secondary market.
Elmnts employs a strategic approach to sourcing mineral rights, utilizing various channels including auctions, private sales, and leveraging its extensive industry networks. Furthermore, the company develops investment partnerships with drilling companies to gain direct access to properties and their associated extraction processes. This level of industry integration provides Elmnts with a competitive advantage in identifying and securing potentially lucrative investment opportunities. These direct relationships could offer Elmnts early access and potentially more favorable terms compared to relying solely on public or secondary markets.
A key aspect of Elmnts’ business model is its direct stake in the oil and gas leases associated with the tokenized assets. This ensures a fundamental alignment of interest between Elmnts and its investors, as the company’s own financial success is directly linked to the performance and profitability of the assets on its platform. This shared risk and reward model can be a significant factor in building trust and attracting investors.
2.2 Products and Services:
Elmnts offers a specialized platform designed for investing in tokenized real-world assets, with an initial concentration on oil and gas royalties. This allows investors to directly participate in the returns generated from the production of oil and gas.
A core feature of the platform is the ability for investors to hold and trade these tokenized assets directly within their digital wallets, positioning them alongside their existing cryptocurrency and non-fungible token (NFT) holdings. This seamless integration within a unified digital environment caters to the growing preference among investors for managing a diverse portfolio of digital assets in one place. This capability could also pave the way for innovative financial products leveraging these tokenized royalties within the broader DeFi ecosystem.
Elmnts provides a valuable service by making real-world assets, which are often characterized by their inaccessibility, significantly easier for a wider range of investors to buy and sell. The platform achieves this by leveraging the inherent capabilities of blockchain technology to simplify the traditionally complex and often outdated processes involved in commodity transactions. This simplification can lower barriers to entry and increase efficiency in the market.
Looking to the future, Elmnts has articulated plans to expand its ecosystem to include a broader range of commodities beyond oil and gas. Additionally, the company intends to introduce a lending protocol, known as Atoms, which would allow users to borrow against their tokenized real-world assets. The Atoms lending protocol has the potential to address the inherent illiquidity often associated with real-world assets by enabling investors to access capital without the need to sell their tokenized holdings.
2.3 Target Market:
Elmnts’ primary target market consists of investors who have an interest in commodity investing, with a particular focus on the oil and gas sector. This specialization allows the company to tailor its platform and marketing efforts to a specific segment of the investment community.
The platform is also designed to appeal to individuals who are already comfortable with or actively participating in the blockchain technology space, including those involved with cryptocurrency and NFTs. These investors are likely to appreciate the transparency, security, and potential for innovation that blockchain-based platforms offer.
Furthermore, Elmnts is targeting investors who are actively seeking easier access to real-world assets and value the transparency that blockchain technology provides in tracking ownership and transactions. This addresses a key pain point in traditional commodity investing, which can often be opaque and involve cumbersome processes.
Initially, based on the reference to security tokens exempt under the Securities and Exchange Commission (SEC) Rule 506(c) , Elmnts’ target market primarily includes accredited investors. This regulatory framework allows for the sale of unregistered securities to individuals meeting specific income or net worth criteria. While this approach simplifies initial regulatory compliance, it also defines the current scope of potential investors. However, there may be a long-term strategy to broaden access to retail investors as the regulatory landscape for tokenized securities evolves.
Insights for Section 2: Elmnts is fundamentally reshaping how investments in oil and gas royalties are approached by integrating the efficiencies and transparency of blockchain technology with the traditional commodity market. This innovative business model has the potential to attract a new wave of investors to this asset class. The strategic roadmap that includes expanding into lending and other commodities signals a clear ambition to establish a comprehensive and versatile platform for tokenized real-world assets within the burgeoning DeFi ecosystem.
3. Market Analysis
3.1 Tokenized Real-World Assets (RWA) Market:
The market for tokenized real-world assets is currently experiencing a period of substantial expansion, with projections indicating a remarkable surge in value. One report estimates that the market will grow from $50 billion in 2024 to a staggering $18.9 trillion by 2033, representing an impressive compound annual growth rate (CAGR) of 53%. This exponential growth trajectory underscores the immense potential and increasing investor interest in bringing traditional assets onto blockchain networks. Another independent analysis corroborates this optimistic outlook, forecasting a similar growth pattern from $0.6 trillion in 2025 to $18.9 trillion by 2033. The consistency in these long-term projections, despite slight variations in the initial market size estimates, provides further confidence in the transformative power of RWA tokenization. As of April 2025, the RWA tokenization market, encompassing stablecoins, has already reached a significant market capitalization of nearly $250 billion. This substantial figure highlights the existing infrastructure and the increasing adoption of tokenized assets within the broader digital asset ecosystem. Furthermore, the impact of tokenization is no longer confined to theoretical discussions. In 2025, tokenized assets across various sectors, including U.S. Treasuries, equities, commodities, and private credit, have demonstrated tangible market presence, reaching a combined value of $15.2 billion, excluding stablecoins. The inclusion of commodities in this growing trend is particularly relevant to Elmnts’ focus on oil and gas royalties. Adding to the positive sentiment, Bitwise, a prominent player in the digital asset space, has predicted that the value of tokenized real-world assets will exceed $50 billion in 2025 alone. This near-term forecast suggests a strong and continuing momentum in the adoption of RWA tokenization, creating a favorable environment for new entrants like Elmnts.
3.2 Tokenized Commodities and Energy Assets:
Within the broader RWA market, tokenized commodities, with gold being the primary asset currently represented, account for a market size of approximately $1.2 billion in 2025. While this segment is smaller compared to other tokenized asset classes, it signifies an existing appetite for bringing tangible commodities onto the blockchain. The dominance of gold in this space may also indicate an opportunity for diversification with other commodities like oil and gas. Looking ahead to the remainder of 2025, the outlook for tokenized commodities is positive, with a base case projection of $1.5 billion and a more optimistic bull case scenario reaching $2 billion. This anticipated growth suggests an increasing acceptance and adoption of tokenizing physical commodities. Industry trends further support this view, with expectations that the tokenization of commodities such as gold, silver, and oil will gain significant traction throughout 2025. This momentum is likely driven by the inherent advantages of tokenization for commodities, including enhanced transparency, the ability for fractional ownership, and simplified trading processes. Experts in the field anticipate that the overall RWA tokenization market will surpass $50 billion in 2025, with commodities identified as a key area contributing to this growth, alongside real estate, private equity, and debt. The increasing involvement of institutional players and the development of clearer regulatory frameworks are expected to be major catalysts for this expansion.
3.3 Oil and Gas Royalties Market:
The global market underpinning Elmnts’ initial focus, oil and gas infrastructure, was valued at a substantial $804.06 billion in 2025, with projections indicating a growth to $1108.31 billion by 2034, representing a steady CAGR of 8.4%. While this figure represents the infrastructure market, it highlights the immense underlying economic activity within the oil and gas sector, which directly generates the royalties that Elmnts aims to tokenize. More specifically, the market for mineral and royalty interests, the direct target of Elmnts’ platform, is estimated to be valued at $700 billion. This significant market size presents a considerable opportunity for Elmnts to capture a substantial portion of the investment volume by offering a more modern, accessible, and liquid alternative to traditional investment methods. In the United States alone, revenues from oil and natural gas leases on onshore federal lands amounted to $8.497 billion in the fiscal year 2023, with royalties constituting the vast majority of this revenue at $8.370 billion. This data point underscores the substantial financial scale of the oil and gas royalty market in just one country. Looking at the demand side, global oil demand remains robust and is forecasted to continue its upward trajectory, reaching nearly 105 million barrels per day by 2030. This sustained demand suggests continued production and, consequently, a consistent generation of oil and gas royalties in the medium to long term, providing a degree of stability to the asset class that Elmnts is focusing on.
3.4 Competitive Landscape:
The landscape for tokenized real-world assets is becoming increasingly populated with a variety of platforms and protocols. Key competitors in this space include infrastructure providers like Chainlink and Algorand , which offer the foundational technology for tokenization. Other platforms such as Ondo Finance focus on tokenizing specific asset classes like U.S. Treasuries. Additionally, there are platforms with broader RWA ambitions, including XDC Network , Quant , Maker , Pendle , Plume , RealT , BlockAsset Group , Tokenize Pro , RWA Labs , Digital Asset Creators , InvestaX , TokenFi , Mantra Chain , Bixos Network , Lyra Network , Securitize , tZERO , and Verta. This diverse range of competitors indicates a growing interest in the RWA market but also highlights the need for Elmnts to establish a clear and defensible niche. Elmnts also operates within the established market for oil and gas royalty investments, facing competition from traditional royalty trusts such as Permianville Royalty Trust (PVL), Permian Basin Royalty Trust (PBT), Cross Timbers Royalty Trust (CRT), and PermRock Royalty Trust (PRT). These trusts have a long history and established investor base. Additionally, mineral rights marketplaces like EnergyNet , US Mineral Exchange , and Oklahoma Minerals facilitate the buying and selling of mineral rights and royalties through more traditional methods. Companies like Ranger Minerals and Live Oak Resource Partners are also active in acquiring mineral and royalty interests. Elmnts’ success will depend on offering significant advantages over these well-established players. Elmnts’ key competitive advantages appear to lie in its position as a first-of-its-kind platform specifically focused on tokenizing oil & gas royalties within the broader real-world asset market. By leveraging blockchain technology, Elmnts aims to reduce the number of intermediaries, lower fees, and provide greater liquidity compared to traditional methods. The company’s core mission is to democratize access to mineral rights and royalties within the oil and gas sector , potentially attracting a new segment of investors who are seeking the benefits of blockchain technology and easier entry into this asset class.
Insights for Section 3: The market analysis reveals a compelling opportunity for Elmnts at the intersection of a rapidly expanding tokenized real-world asset market and a substantial, though historically illiquid, oil and gas royalty market. While the competitive landscape is evolving, Elmnts’ specialized focus on oil and gas royalties, coupled with the inherent advantages of blockchain technology, positions it favorably to capture a significant share of this emerging market. The ability to offer increased accessibility and liquidity compared to traditional investment methods could be a key driver of adoption for Elmnts.
4. Technology and Platform
4.1 Underlying Technology:
Elmnts has strategically chosen to build its platform on the Solana blockchain. This decision is primarily driven by Solana’s inherent technical capabilities, including its high capacity for scalability, which is crucial for handling a potentially large volume of transactions as the platform grows. Furthermore, Solana offers near-instant global transaction speeds, allowing for efficient trading and settlement of tokenized assets. A significant advantage of the Solana network is its low transaction fees, which can make frequent trading and smaller investments more economically viable for users. The combination of these features makes Solana an ideal foundation for a tokenized commodities ecosystem where speed, cost-effectiveness, and the ability to scale are paramount. In addition to leveraging the core functionalities of the Solana blockchain, Elmnts is also utilizing Solana token extensions. These advanced features of Solana’s SPL token standard enable issuers to program regulatory compliance directly into the tokens themselves. This innovative approach allows Elmnts to embed regulatory guardrails, such as restrictions on who can hold or trade the tokens, directly within the token’s code. This can significantly streamline compliance processes and enhance trust among investors by providing transparency and automation of regulatory requirements.
4.2 Tokenization Process:
At its core, Elmnts’ technology transforms traditional investments in mineral rights into digital tokens. This fundamental process makes these historically complex and often inaccessible investments significantly more accessible to a broader range of investors. By representing ownership as digital tokens on a blockchain, Elmnts enhances the transparency and security associated with these assets. The tokenization process involves converting the ownership rights to mineral rights and oil & gas royalties into digital tokens recorded on a blockchain. Each token represents either the entire asset or a fractional share of it, allowing for investments at various capital levels. These digital tokens can then be readily bought, sold, and traded on the Elmnts platform, facilitating a more liquid market compared to traditional methods of dealing with mineral rights. All transactions involving these tokenized assets are secured by the underlying blockchain technology. This ensures that the records of ownership and the history of transactions are transparent, immutable (meaning they cannot be altered), and can be independently verified by anyone on the network. This inherent security and transparency are key advantages of using blockchain for asset tokenization, building trust and confidence among investors.
4.3 Platform Features (Based on limited information):
The Elmnts platform is designed to provide accredited investors with a centralized point of access to investment opportunities in oil and gas royalties. Upon registration, users can explore a variety of investment options, review detailed information about the underlying mineral rights, and undergo a qualification process to ensure they meet the criteria for investing in these tokenized securities. Once qualified, investors can seamlessly invest in and manage their portfolio of tokenized assets directly through the platform. To facilitate ease of use, Elmnts provides an embedded digital wallet during the signup process. This eliminates the need for users to manage external cryptocurrency wallets, simplifying the onboarding experience, particularly for those new to blockchain technology. The platform supports investments using the USDC stablecoin, a cryptocurrency pegged to the US dollar, as well as traditional payment methods via ACH transfers, facilitated through a partnership with Coinflow. This dual payment option caters to a broader range of users with varying levels of familiarity with digital currencies. Looking towards future development, Elmnts has announced plans for a lending protocol called Atoms. This feature would allow investors to use their tokenized oil and gas royalties as collateral for obtaining crypto loans. The introduction of such a DeFi functionality has the potential to significantly enhance the liquidity of these traditionally illiquid assets, providing investors with greater financial flexibility.
4.4 Security Measures (Limited information):
The foundational security of the Elmnts platform is inherently provided by the underlying blockchain technology. Blockchain’s decentralized and cryptographic nature makes it extremely difficult to tamper with transaction records or alter ownership information. This provides a robust level of security for the tokenized assets and the platform’s operations. Furthermore, Elmnts’ utilization of Solana token extensions to program regulatory compliance and embed regulatory guardrails within the tokens themselves also contributes to the overall security and integrity of the platform. By automating compliance at the token level, Elmnts reduces the risk of non-compliant transactions and enhances the security framework. However, while these aspects indicate a security-conscious approach, further details regarding specific security protocols implemented by Elmnts, such as smart contract audits, encryption methods, and custody solutions for the underlying assets, would provide greater reassurance to potential investors.
Insights for Section 4: The technology underpinning Elmnts, particularly the choice of the Solana blockchain, appears to be a strategic advantage, offering the necessary speed, scalability, and low costs for efficient operation. The innovative use of Solana token extensions for regulatory compliance further highlights the platform’s forward-thinking approach. While the inherent security of blockchain provides a strong foundation, providing more explicit details about Elmnts’ specific security measures would be beneficial for instilling greater investor confidence. The planned Atoms lending protocol represents an exciting development that could significantly enhance the platform’s utility and attractiveness within the DeFi space.
5. Team and Advisors
5.1 Core Team:
Odai Ammar, the Co-founder and Chief Executive Officer (CEO) of Elmnts , brings direct and relevant experience to the company through his previous role as Head of Real Estate and Business Development at Lofty AI. Lofty AI operates a platform focused on real estate tokenization, utilizing a fractional ownership model. Ammar’s leadership as CEO, coupled with his prior experience in a similar domain, suggests a strong understanding of the RWA tokenization landscape and the ability to navigate its complexities. James Pacheco, a Co-founder and the Chief Product Officer (CPO) at Elmnts , is responsible for the platform’s product strategy and user experience. His emphasis on enhancing accessibility to high-yielding assets aligns directly with Elmnts’ core mission of democratizing access to oil and gas royalties. A strong focus on product development is crucial for creating a user-friendly and effective platform that attracts and retains investors. Elias Moreno, initially a Co-founder and the Chief Technology Officer (CTO) of Elmnts , appears to have transitioned to a role as a Software Engineer at Squads as of February 2025. While his LinkedIn profile corroborates this transition, RootData still lists him as a former CTO of Elmnts in April 2025. His early involvement as CTO likely played a significant role in shaping the technical architecture of the Elmnts platform. The exact nature and extent of his current involvement with Elmnts would be a pertinent question for potential investors. Erich Schmidt, a Co-founder and the Chief Operating Officer (COO) of Elmnts , brings invaluable expertise in the specific asset class that Elmnts is targeting. His background as an oil industry veteran provides a deep understanding of the operational aspects of sourcing and managing mineral rights and royalties. His role as COO is critical for establishing and maintaining the partnerships with drilling companies and ensuring the quality of the underlying assets. Leonardo Galante is identified as a developer on the initial Elmnts team. His presence indicates the technical capacity within the founding team to build and maintain the platform. A skilled development team is essential for the ongoing evolution, stability, and security of any technology-driven business.
5.2 Advisors and Partners (Based on limited information):
The fact that Solana co-founders, Raj Gokal and Anatoly Yakovenko, are investors in Elmnts provides a significant level of validation for the project, particularly its technological foundation. Their deep understanding of the Solana blockchain and its ecosystem lends considerable credibility to Elmnts’ choice of platform and its potential for success within the Solana network. Elmnts has also garnered backing from notable venture capital firms, including Foundation Capital, Graph Ventures, and B+J Studios. The investment from these firms suggests that Elmnts has undergone a degree of due diligence and its business model has resonated with experienced investors in the technology and blockchain sectors. These venture capital firms often bring not only financial resources but also valuable expertise and industry connections. The partnership with Coinflow to facilitate the conversion of traditional fiat currency (via ACH) to the USDC stablecoin is a strategic move that significantly enhances the accessibility of the Elmnts platform for users who may not be familiar with the intricacies of cryptocurrency exchanges. This streamlined onboarding process is crucial for attracting a broader user base.
Insights for Section 5: The leadership team at Elmnts appears to possess a well-rounded blend of experience that is directly relevant to the company’s business model, encompassing blockchain technology, real estate and asset tokenization, and the oil and gas industry. This diverse skillset increases the likelihood of effective execution across the various facets of the business. The early financial backing and endorsement from prominent figures in the blockchain space and reputable venture capital firms provide a strong indication of the potential and viability of Elmnts’ vision. However, the apparent shift in the initial CTO’s primary role warrants further scrutiny to ensure the continued strength and stability of the platform’s technical leadership.
6. Financial Overview
6.1 Funding History:
Elmnts successfully raised $2 million in a Pre-Seed funding round on August 5, 2024. This significant initial capital injection was led by prominent venture capital firms Graph Ventures, Foundation Capital, and B+J Studios, and also saw participation from notable angel investors, including Raj Gokal and Anatoly Yakovenko, the co-founders of Solana. This level of early investor interest and the involvement of strategic backers provide a strong foundation for Elmnts’ initialvdevelopment and operational activities. There is some discrepancy in the reported details of Elmnts’ early funding. While the $2 million pre-seed round in August 2024 is consistently reported by multiple sources , some sources also mention a $268,000 seed round raised by Elmnts Investments Series 1 on July 18, 2024. Pitchbook also notes a $2 million Early Stage VC deal on August 5, 2024. Startupluxembourg reports $2.0 million in August 2024 , and Fundz mentions a $268,000 seed round with an initial filing on December 11, 2024. It is likely that the $2 million figure represents the primary pre-seed funding round that garnered significant attention, while the $268,000 might be an earlier, smaller seed investment or a separate investment vehicle. Further clarification from Elmnts regarding its complete funding history would be beneficial for investors. According to Tracxn data , the post-money valuation for the $268,000 seed round was $9,617,417, with a revenue multiple of $1,147,226. However, given the more widely reported $2 million funding round around the same period, this valuation might not accurately reflect the company’s current standing. Securing the valuation associated with the $2 million investment would provide a more relevant metric for potential investors to assess the company’s worth.
Table 1: Funding History
| Date of Funding | Funding Amount | Round Type | Lead Investors | Other Notable Investors | Post-Money Valuation (Reported) |
|---|---|---|---|---|---|
| July 18, 2024 | $268,000 | Seed ?? | Not Disclosed | $9,617,417 | |
| August 5, 2024 | $2,000,000 | Pre-Seed | Graph Ventures, Foundation Capital, B+J Studios | Anatoly Yakovenko, Raj Gokal, Anagram Crypto, Asymmetric, Autonomy Capital, MonkeVentures, Outliers Fund, Dead King Society, Austin Federa, Anatoly Kondiyakov, Joe McCann, Mert Mumtaz, Nom, Geoff Renaud, Brian Long, Hardhat Chad, Rex, BASED CHARKER, lil perp, Anna, Samer, EBlock Capital, Milst | Not Available |
6.2 Revenue Model:
Elmnts has established a clear revenue model that includes a management fee of 0.69%. This fee, typically applied to the total value of assets managed on the platform, provides a recurring revenue stream that scales with the growth of Elmnts’ assets under management (AUM). This model is common in the digital asset management space and directly incentivizes Elmnts to attract and retain investors on its platform.
In addition to the management fee, Elmnts also earns 6.25% equity as the sponsor of its tokenized funds, instead of charging a traditional cash commission fee. This equity-based compensation structure aligns the long-term financial success of Elmnts with the performance of the investment funds offered on its platform. If the tokenized oil and gas royalty funds generate strong returns for investors, Elmnts stands to benefit significantly from its equity stake. This model demonstrates a commitment to the long-term value creation for both the company and its users.
6.3 Financial Projections (Not available in snippets):
The provided research material does not include detailed financial projections for Elmnts, such as projected revenue, expenses, or timelines for achieving profitability. This type of information is typically crucial for potential investors to assess the financial viability and growth potential of a company. Obtaining financial projections from Elmnts would be a necessary step for conducting thorough due diligence.
Insights for Section 6: Elmnts has successfully secured initial funding, which is a positive indicator of early investor confidence in its vision and business model. However, the discrepancies in the reported funding details underscore the need for further clarification to present a completely accurate financial overview. The established revenue model, combining a competitive management fee with an equity stake in the sponsored funds, appears to be a sustainable approach that aligns the company’s interests with those of its investors. The absence of detailed financial projections in the provided material represents a gap in the information available for potential investors to fully evaluate the financial prospects of Elmnts.
7. Risk Assessment
7.1 Regulatory Challenges:
The regulatory landscape governing tokenized assets, including real-world assets like oil and gas royalties, is still in a state of evolution and is characterized by a degree of uncertainty. This inherent uncertainty presents a potential risk for Elmnts, as future regulatory developments could impact the legality or operational framework of its business model. To mitigate this risk, Elmnts will need to maintain active engagement with relevant regulatory bodies and adopt a proactive approach to ensuring ongoing compliance. Furthermore, the legal recognition of ownership rights associated with tokenized assets and digital ownership in general is not yet fully established within existing legal systems across all jurisdictions. This lack of complete legal clarity could potentially lead to challenges in the enforcement of ownership rights or in the seamless transfer of these rights, which in turn could affect the liquidity and overall marketability of the tokenized oil and gas royalties offered on the Elmnts platform. Navigating the specific rules and regulations pertaining to securities or commodities for tokenized assets can be a complex undertaking, with compliance requirements often varying significantly across different jurisdictions. Elmnts will need to dedicate resources to thoroughly understand and adhere to the regulatory landscape in each region where it operates or where its investors are located. Failure to meet these diverse regulatory requirements could expose the company to legal penalties and operational disruptions. In the case of Elmnts, the tokenized oil and gas rights are structured as securities that are exempt from full registration under SEC Rule 506(c). While this regulatory pathway simplifies the initial compliance burden, it also restricts the pool of potential investors to those who meet the criteria for accredited investor status. This limitation, while strategic for early-stage compliance, could potentially constrain the platform’s overall growth compared to platforms that can offer access to a broader base of retail investors, should future regulations permit.
7.2 Market Volatility and Adoption Risks:
Tokenized assets, particularly those that are traded on secondary marketplaces, are susceptible to significant price fluctuations. This inherent volatility, which is characteristic of the broader cryptocurrency market, could extend to tokenized real-world assets like oil and gas royalties traded on the Elmnts platform. Such price swings could impact the returns experienced by investors and potentially erode overall market confidence. The widespread market acceptance of tokenized oil and gas royalties as a viable investment product is not yet fully established and depends on the evolving appetite of investors for this relatively novel asset class. The success of Elmnts will ultimately rely on its ability to effectively educate potential investors about the benefits and risks associated with tokenized royalties and to attract a substantial number of users to its platform to create a liquid and active market. The fundamental value of mineral rights and the associated royalties is intrinsically linked to the volatility of energy markets. These markets are subject to a wide array of influencing factors, including global economic conditions, geopolitical events, and evolving environmental policies. Fluctuations in the prices of oil and gas will directly impact the income generated from the underlying mineral rights, which in turn will affect the returns realized by investors on the Elmnts platform.
7.3 Technological Risks:
Despite the robust security features inherent in blockchain technology, the underlying blockchains and the smart contracts that govern tokenized assets are not entirely immune to security risks and potential technological failures. These risks include the possibility of hacking attempts targeting the platform’s infrastructure or the exploitation of vulnerabilities or bugs within the smart contracts that manage the tokenized assets. Successful security breaches could lead to the loss of investor funds or significant disruptions in the platform’s operations. The process of asset tokenization itself can be technologically complex, potentially creating a steep learning curve or significant entry barriers for some individuals and institutions interested in participating in the market. If the Elmnts platform and its associated processes are not designed with a high degree of user-friendliness and clarity, it could deter potential investors, particularly those who are new to blockchain technology or the intricacies of commodity investing. Ensuring the secure custody and effective management of the tokenized assets is of paramount importance. Investors need to have confidence that their digital assets are held in a secure manner and are protected against loss, theft, or mismanagement. Elmnts will need to clearly articulate and implement robust custody solutions and security protocols to address these critical concerns.
7.4 Competition Risks:
The market for tokenized real-world assets is rapidly growing and attracting an increasing number of participants, leading to a heightened level of competition. As more platforms and protocols emerge in this space, Elmnts will face growing competition for both investors seeking opportunities in tokenized assets and for the sourcing of high-quality real-world assets to tokenize. To thrive in this competitive environment, Elmnts will need to establish and maintain a strong and defensible competitive advantage, potentially through unique product offerings, strategic partnerships, or superior technological capabilities. In addition to the competition within the blockchain-based RWA space, Elmnts also faces competition from the traditional, well-established methods of investing in oil and gas royalties. These traditional avenues include royalty trusts, mineral rights marketplaces, and direct acquisitions. To successfully attract investors, Elmnts will need to offer compelling advantages over these existing methods, such as increased accessibility, enhanced liquidity, greater transparency, or lower transaction costs.
7.5 Team and Operational Risks:
The initial technical leadership of Elmnts, embodied by co-founder and former CTO Elias Moreno , appears to have shifted, with his LinkedIn profile indicating a role at Squads as of February 2025. This potential change in technical leadership could pose a risk to the platform’s ongoing technical development, maintenance, and innovation. Potential investors will likely seek clarity on who is currently leading the technology efforts at Elmnts and their qualifications to ensure the platform’s continued technical stability and advancement. Elmnts also faces operational risks inherent in the process of sourcing and managing mineral rights and in maintaining effective partnerships with drilling companies. The quality and profitability of the tokenized royalties offered on the platform are directly dependent on Elmnts’ ability to identify and secure valuable mineral rights and to foster strong, collaborative relationships with the operators responsible for the extraction of oil and gas. Any disruptions or challenges in these operational aspects could negatively impact the returns generated for investors.
Insights for Section 7: Investing in Elmnts, as with any early-stage venture in a rapidly evolving technological and regulatory landscape, carries a number of inherent risks. These risks span regulatory uncertainties surrounding digital assets, the volatility of both the cryptocurrency market and the oil and gas sector, potential technological vulnerabilities, increasing competition within the RWA space, and operational complexities associated with the oil and gas industry and team dynamics. A thorough assessment of these potential challenges is crucial for any prospective investor.
8. Investment Highlights and Conclusion
Elmnts presents a compelling investment opportunity at the forefront of the burgeoning tokenized real-world asset market, specifically targeting the substantial oil and gas royalty sector. The company’s innovative approach leverages the speed, scalability, and low costs of the Solana blockchain to offer a platform that promises to democratize access to a traditionally illiquid and complex asset class. The strategic focus on mineral rights and royalties, coupled with plans for future expansion into other commodities and the integration of a lending protocol, positions Elmnts for significant growth within the DeFi ecosystem. The experienced core team, with relevant expertise in blockchain, real estate tokenization, and the oil and gas industry, along with the early backing from prominent figures in the crypto space and reputable venture capital firms, provides a strong foundation for the company’s future success.
The market for RWA tokenization is experiencing exponential growth, and Elmnts is entering this space with a focused strategy on a $700 billion market. The platform’s aim to reduce intermediaries, lower fees, and enhance liquidity addresses key pain points in traditional commodity investing. Furthermore, the use of Solana token extensions for regulatory compliance demonstrates a proactive and innovative approach to navigating the evolving regulatory landscape.
However, as with any investment in emerging technologies, potential investors must carefully consider the inherent risks. These include the evolving and uncertain regulatory environment for digital assets, the volatility of both the cryptocurrency and energy markets, potential technological vulnerabilities, increasing competition in the RWA space, and operational complexities related to the oil and gas industry. The departure of the initial CTO also warrants further due diligence.
Despite these risks, Elmnts’ strategic positioning within a high-growth market, its innovative technology, experienced team, and early investor validation suggest a promising outlook. For investors seeking exposure to the intersection of traditional assets and decentralized finance, particularly within the oil and gas sector, Elmnts offers a unique and potentially lucrative opportunity. Further due diligence, including a thorough review of the platform’s security measures, clarification on the technical leadership, and access to financial projections, is recommended for potential investors to make an informed decision.
Works cited (Partial List)
Elmnts
The Elmnts Approach
Elmts – 2025 Company Profile, Funding & Competitors – Tracxn
What We Do | Welcome to Elmnts!
A Solana project wants to tokenize oil rights — will investors bite?
Unlocking RWA Tokenization in 2025: Key Trends, Top Use Cases & DeFi Insights – KuCoin
Tokenized Real-World Assets Market Expected to Reach US$18.9 Trillion by 2033
Elmnts Investments Series 1 $268,000 seed 2024-12-11 – Fundz
Elmnts 2025 Company Profile: Valuation, Funding & Investors – PitchBook
Marc F.