Up until recently, a business wishing to find investors had to issue its shares on the traditional stock market. It is a well-regulated, tried and true way to secure financing for a project but it is difficult to enter the stock exchange because of the legal requirements a business has to meet. While regulation is extremely important when it comes to the financial market, excess can lead to innovation being stifled.
Safety and Transparency in Investment
The Initial Exchange Offering model allows a business to fundraise toward an innovative project in an easier, more convenient and considerably more transparent way.
Guaranteed safety of investment is one of the most important elements a project can have to an investor. Over the years, many strategies have been developed to better guarantee transaction security and the safety of the funds themselves.
As we were entering the digitization and cryptocurrency era, investors and business themselves increasingly needed quickly-developed and safe IT projects promoting communication and improved liquidity.
IEO as a safe and transparent way to finance a project is fast gaining popularity around the world. As one of its main strengths one has to list its excellent transparency and safety. Initial Exchange Offering is a cryptocurrency-related instrument based on the blockchain technology.
To be able to participate in Initial Exchange Offering, a project must meet particular exchange requirements. Otherwise its token cannot be sold on the exchange. The exchange runs a thorough and comprehensive background check of projects before their tokens can be sold as part of an IEO. The main purpose of the background checks is to limit the risk of financial loss for investors.
As part of its IEO, Marshal Lion will issue a pre-defined number of tokens. The process will be reliant on smart contracts. Smart contracts automate the project and eliminates needless middlemen. The token itself will later serve as an investment instrument to be used with Marshal Lion’s product lineup. As the project team has stated:
“The ease of use guaranteed by the Marshal Lion dedicated digital platform will make investing in the non-bank loans market easier than it’s ever been and will draw in many of those who so far have been locked out of that lucrative market”.
Following the purchase of a token, an investor will be able to use it on the Marshal Lion digital platform at https://mlgc.io/. There, one will find the projects available for investment. After the project has come to its conclusion, the investor will receive their tokens back. Marshal Lion then pays out investors’ shares in ETH. If a project fails to succeed, the investor loses nothing and receives their invested funds on the same day. The risk is covered by Marshal Lion.