Blockchain has undoubtedly become a hot topic in recent years, with all kinds of people wanting to seize the business opportunities it offers. For example, many enterprises want to stand on the project side of the blockchain and issue tokens. Relatively speaking, there are also VC (Venture Capital) or PE (Private Equity) investors actively looking for good blockchain investment targets.
Unfortunately, in the current market mechanism based on centralized exchanges, any token issuance model like ICO (Initial Coin Offering), STO (Security Token Offering) or IEO (Initial Exchange Offerings) is faced with many challenges, so people hesitate to invest for fear of losing too much. Project teams worry that their trading volume is not deep enough to maintain the good circulation of their tokens or that the cost of token issuance and trading in the exchanges is too high. Investors are worried about the uneven quality of projects as some exchanges lack project due diligence capacity, or they are worried about not receiving adequate information about price and deal conditions.
In order to resolve all doubts, and with the support of SDChain Alliance, SDAT Institutional Investor Alliance (SDAT Alliance) has been founded and the SDAT decentralized exchange has been created. There are two reasons for this. On the one hand, the enterprises can directly issue their own tokens in the innovative and unique DIYO (Do-It-Yourself-Offering) model as expected, and thus they can widen their trading channels by sharing trading depths in SDChain-supported decentralized exchanges such as the SDAT decentralized exchange and exchanges belonging to other SDAT Alliance members. On the other hand, the SDAT Alliance members who are very experienced in the investment industry, can utilize SDAT membership tokens, to access the rights and the interests of members at private fund-raising roadshows to perform due diligence on projects, and help support high-quality capital investment projects. Consequently, investors receive fair and transparent treatment in the private placement process.
In other words, the emergence of the SDAT decentralized exchange is expected to cleverly beat the blind spots in the current market mechanism and truly open the way for a tokenomics-based investment industry.
DIYO Model Designed for Traditional B2C Businesses
Some people may say that there are decentralized exchanges (DEX) on the market that have been running on Ethereum. By contrast, what different values can SDAT show? David Pan, CEO of SDChain Alliance, and Chief Economist of SDAT Alliance, points out that comparing Ethereum decentralized exchanges with the SDAT Decentralized Exchange, one may find that SDAT can handle 5,000 transactions per second (TPS) at transaction confirmation speed of 3~5 seconds, compared to Ethereum-based DEX which could be up to hundred times slower and much less trader-friendly. SDAT Exchange is unique in the industry, capitalizing on the ultra-fast SDChain technology, to form the perfect user operating experience. This makes the SDAT Exchange a powerful new entrant in the cryptocurrency exchange industry.
David Pan went on to say that businesses considering DIYO should meet a few of the following 4 key DIYO attributes:
- Businesses should have an operating history with proven products or services that can further improve their net income through DIYO.
- Businesses are likely to be brand operators who want to apply tokenomics to improve customer loyalty.
- Businesses can increase cash flow convenience, applicable to cross-border settlements, as well as supplier and customer settlements.
- Businesses can further strengthen the trust relationship among suppliers and customers.
It is worth mentioning that behind DIYO is a huge shared ecosystem, which can cover many investment institutions and more decentralized exchanges based on SDAT Alliance technology framework. For starters, SDAT Exchange is the first operating decentralized exchange reference, encouraging more exchange operators from more countries to join the SDAT Alliance ecosystem to share the trading depth of the entire blockchain network transactions. Within this shared ecosystem, SDChain assists exchange operators with technical development, as new blockchain implementations are upgraded simultaneously across the entire SDChain blockchain network. This means that exchange operators can enjoy the latest technological achievements at any time without organizing their own blockchain technical teams.
In terms of how traditional businesses can issue their own DIYO, here is a simple example. Suppose there is a magazine, XYZ, that decides to participate in DIYO. It can first promote its token sales online by itself, and meanwhile it can tell consumers if they subscribe to the magazine for one year, the subscribers can get the XYZ token issued by the magazine. At a certain time defined by XYZ magazine, the magazine management team can choose to go to SDAT Exchange, and or other SDAT Alliance decentralized exchanges, to list XYZ tokens for trading, pending the new subscriber base which XYZ magazine wishes to target by working with other SDAT Alliance exchanges operating in different verticals or countries.
As well as talking about DIYO utility tokens, David Liao, CEO of the SDAT Alliance, who has nearly 20 years of experience in real estate investment & financing and REIT investment globally, comments on the growing real estate tokenization requirements. David Liao says that overseas investment institutions and real estate developers are in urgent need of exploring the real estate tokenization and securitization benefits. He added that SDAT Exchange is an innovative business model to accelerate the growth of the real estate private placement industry, and to power the future of the real estate digital economy.
Transparent DIYO and Real Estate Private Placement Process Enabled by SDAT Token Membership
There are 6 key missions for the SDAT exchange:
- To guide traditional and innovative investment institutions to understand blockchain tokenomics.
- To protect investor rights through the comprehensive openness and transparency of the transactions on the decentralized exchanges.
- SDAT membership tokens serve to establish an orderly private placement investment process, facilitating private equity investment quota and due diligence time period.
- To create a member-for-member investment community where SDAT members can provide projects for other members to invest in.
- To create a safe and efficient online transparent operation through the SDAT membership system facilitating private fundraising roadshows, so that each member can enjoy their entitled due diligence time period according to their SDAT tokens held. During this period, members can participate in online roadshows, listen to project pitches, and ask questions in a timely manner to decide whether or not to invest.
- To create a fair environment as SDAT members, based on the number of the tokens they own, will receive corresponding services on SDAT Exchange.
For example, the top 10% of members with a large number of SDAT membership tokens may be ranked at Level 6 and have a longer due diligence time period than Level 2~5 members. Each member, according to the number of SDAT tokens they hold, is allocated their equivalent investment quota ratio, based on all SDAT tokens outstanding. Each time before a private placement activity starts, the membership level will be reordered according to the number of membership tokens that each member owns at that time. If an investment institution that were originally listed at Level 5, and later bought more SDAT membership tokens to upgrade their membership into Level 6, then the new Level 6 member could qualify for Level 6 benefits for the specific private placement activity.
For the investors who do not hold the SDAT membership tokens, they are usually recognized as Level 1 members. Although they do not have access to private placement documents, participation in roadshows, quota allocation, they can still check the open materials online and purchase tokens through the exchange platform after private placement is completed and the project launches on SDAT Exchange.
SDAT Exchange does not charge trading fees. Regardless of the size of each transaction amount, only one ten-thousandth of SDA is used as blockchain gas fee. In contrast, other exchanges generally charge one or two-thousandths of the trading fee according to the transaction amount. Assuming a transaction is worth $100K USD, the investor will have to pay a trading fee of at least $100 USD. If the same transaction occurs on the SDAT exchange, only one-ten thousandth of SDA, roughly $0.000001 USD will be charged. This is significant saving for institutional investors and traders.
SDAT Exchange is expected to launch the Alpha version of SDATokens.com in mid-June 2019; the SDAT Institutional Investor Alliance will be officially launched at the same time. SDAT welcomes businesses that are interested in issuing DIYO tokens to learn more, as well as investment institutions interested in private placement opportunities to join us.