Tokenization: How Aladin Tokens Can Build Assets and Provide MSMEs Access to Required Funding

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AladiEx

4 min readJul 31, 2020

A grand reshaping of economic initiatives worldwide is taking place in the global financial sector. As tokenization of real-world assets becomes apparent, this led to disruption to how companies conduct their business transactions. Business owners are adopting new and improved processes for managing their enterprises.

Aside from holding and trading, evaluating market volatility, and the ongoing debates regarding the pros and cons of cryptocurrency as compared to fiat money, many significant developments are occurring. One of them is tokenization.

Tokenization Defined

Using tokens is comparable to real-world assets that incorporate the blockchain technology in developing digital tokens. These tokens have value like common assets. The presence of digital tokens is revolutionizing the current capital markets.

Some advantages of digital tokens include:

Hassle-free ownership transfer. As businesses are tokenized, this enables faster transfer of ownership. Compared to long waiting times for banks or financial institutions to approve financing, employing a crypto token is a straightforward approach that uses peer-to-peer (P2P) innovation that ensures immediate transfers.

Accessibility anytime, anywhere. Like cryptocurrencies, assets can either be bought or sold at any time and anywhere via blockchain and smart contract technologies, only requiring you to have stable internet connectivity.

Improved liquidity. Tokenization provides liquidity based on illiquid property, which is not easy to physically partition. The high price of any property like real estate or venture capital funds restricts them and makes them inaccessible to most investors. This is where the lockup time may be longer, including the release of the down payments. Tokenization enables liquidity and allows us to purchase or sell a portion of an asset, providing the capital instead of having an investor. The presence of digital asset markets can disrupt and entirely modify the basic stock exchanges.

Asset Ownership: Using Token Via Blockchain

Some thriving enterprises employ security token offerings (STO) to increase funding supported by tangible real-world assets. They are widely used as an entry point and ownership means. The ease of exchanging tokens through the blockchain, globally, instantly, and with minimal transaction fees, could entirely disrupt conventional stock ownership industries and infrastructure.

The concept of asset ownership has become a sub-sector of the crypto industry through security tokens or tokenized securities, which may reflect stocks and properties, including other securities with tokens highlighting their blockchain value. In turn, this enhances efficiency, liquidity, and transparency.

These asset-supported tokens are not constrained to blockchain-related activities, which usually are instrumental to ICOs for raising funds. They can provide innovation in conducting enterprises on stock exchanges compared to what we have at present.

Boosting Digital Asset Economy

Despite the availability of specific regulations to ensure the accountability of the token issuers, an STO works a fundraising instrument like an initial coin offering (ICO).

Compared to an STO, the introduction of ICOs is also recognized as a viable approach to crowdfunding. These ICOs have supported several startups to raise a fundraising strategy and an essential factor for crowdfunding via the blockchain, safeguarding all involved parties, specifically the investors.

Blockchain engineering is increasing exponentially in many industries like finance with more applications that could change the lives of many people. Regarding ownership, with smart contracts, security tokens are created with the main objective of providing solutions for real-time digital assets transfers based on legal boundaries.

Understanding Aladin Tokens

AladiEx Token Offering (ATO) is a new fund-raising approach that uses super Aladin tokens, which are solely owned by Aladiex Holdings Limited. The ATO model has unique features.

Multiple sales rounds. The release of the tokens comes in phases fit to every stage of the firm’s development.

Key performance indicators. Each of the company’s development stages has KPIs needed for every round and the firm must finalize the indicator in the past round so it can raise funds in the succeeding rounds.

Token freeze and release. Several tokens that belong to the contributors are frozen until the succeeding round then these may be partially released to avoid price manipulation and keep stable growth for the token value.

Reward tokens. Contributors in the previous phase get bonuses or rewards with a token amount at the holding rate when the firm begins raising funds in the succeeding phase.

Profit-sharing. About 70% of the profit of the whole ecosystem is shared among token holders based on the number of tokens held.

AladiEx Brings Innovation to Startups

AladiEx is a digital platform that provides the funding needs of micro, small, and medium-sized enterprises (MSMEs). The platform enables them to raise funds for their global projects at an affordable cost while reducing the business bottlenecks.

The distinct blockchain ecosystem solution, provided by AladiEx, supports both business financing and investors worldwide to invest in potential projects that are hassle-free while managing their assets through sophisticated trading platforms. Check out our website for more details today at https://aladiex.io/. If you are ready to trade with us, visit https://aladiex.com/.