Investing in Security Token Offerings: Minting the Way to Blockchain Investments
STOs (Security Token Offerings) established on the blockchain provide recent unique applications of investments, business possibilities and additional opportunities that are presently inaccessible in the customary markets.
Notable enterprises like Microsoft, Amazon, IBM, Google, Facebook, and Walmart have recently begun creating alternatives for blockchain. Furthermore, statistics unveil that the blockchain innovation enterprise is predicted to achieve $24 billion by 2024. Similarly, the World Economic Forum foresees that 10% of the World’s GDP (Gross Domestic Product) will rely on blockchain by 2025.
Although the statistics do not unveil the entire story, blockchain innovation is a game-changer; the ventures created in the field are mistakenly viewed. With this in mind, there have been many concluded in a list of frauds, concealed behind the name of ICOs (Initial Coin Offerings).
The ICO ventures that appealed investors across the world generated billions of dollars amongst the years 2017 and 2018. Considering this, 80% of these ventures were detected as frauds wherein thousands of them are currently defunct in 2019.
Furthermore, the vague lawful systems surrounding ICOs and utility tokens have conclusively caused in a venture being closed by the government. Particularly, for blockchain investments when it is at such an early phase, it is significant to comprehend the different lawful conformance for various legislations. Consequently, the insufficient transparency on the lawful system for ICO caused by criminal acts closed bank accounts, and money laundering undertaken by the originators.
Due to the ups and downs of ICOs, a technological method to blockchain investments was enforced with the utilization of STOs. Unlike the utility tokens provided by an ICO, security tokens are supported with tangible assets suchlike enterprise incomes and fractions as well as real estate.
With this in mind, a security token has an actual-value which is constituted by the underlying asset, particularly stocks, real estate property, funds, bonds, etc. In addition to that, the token generated on blockchain innovations offers the company an advance funding process. Additionally, the security token showcases investors with a chance to obtain divisions of an enterprise or even an asset.
Dissimilar to utility tokens, security tokens represent a monetary worth and constitute divisional or whole proprietorship of real-world assets. More significantly, STOs abide by lawful and governed administrations like AML, HYC, background checks on various financial specialists, etc. In contrast to ICOs, investing in STOs is much more secure and lawful.
In the world of Crypto, finding the right people to do the job can be troublesome and difficult at best. This is why at FIAT Exchange, we offer an all-in-one service encompassing everything there is to launching a token offering, as well as ensuring that everything is safe and transparent with all of the legalities done first. As a pioneer in the consensus industry, we offer the tools to democratize access to finance and through our platform, investors, start-ups and established companies are able to find opportunities they otherwise never would have.
At FIAT Exchange, we have consultants to help innovative start-ups, promising businesses and even well-established corporations launch their own Initial Exchange Offering, Initial Coin Offering, Security Token Offering or Reverse Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.
While there already are other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.
If you are an Investor looking to unlock access in the FIAT Exchange ecosystem and discover new investment opportunities or if you are an Entrepreneur looking to raise capital, we can definitely help! Please feel free to contact us: support@fiatxs.com
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