10 Reason to Crowdfund with TaoDust
With so many options out there to raise startup capital, our goal was to bring the best of both the private equity and crowdfunding worlds together on one platform. Here is a short list of some of our favorite advantages to traditional crowdfunding. Enjoy!
TaoDust is Great for Startups
TaoDust believes that there is no “One Size Fits All” solution for startups who need to raise capital. With this in mind we also uniquely understand what most startups go through during this process and how they can benefit from having their assets tokenized as an alternative. We propose the first real use for the blockchain for equity crowdfunding which empowers entrepreneurs and business owners to take full advantage of the cost-saving efficiency of smart-contracts.
Smart-contracts are configurable and pre-defined instructions to the blockchain ledger. They are an emerging type of “programmable-asset” that, when tokenized through TaoDust, can take care of the complicated registration, compliance, and distribution procedures for your equity crowdfunding campaign.
Ownership Rights
With Equity Crowdfunding 2.0 unlike traditional crowdfunding, TAO investors have 100% ownership over their tokens. TaoDust issues securities that allow investors to finance innovative startups and small to medium-sized companies in exchange for company shares. Our platform is truly different in that it takes the equities that those shares represent and tokenizes them to ledger upon the Ethereum blockchain.
These Equity Token Offerings on TaoDust have the same benefits of ownership rights that investors of instruments like common stock enjoy as well as the flexibility of issuing derivative investments for market makers and token creators.
Security Regulation
We offer the diversity and speed of an ICO while complying with the regulation. While there are many different regulatory models for startups to follow, TAODust cuts through the red-tape by providing something of a template for organizations and other project creators to follow. These smart-contracts then allow a startup issuing a crowdfunding campaign on TaoDust to automate the corporate governance which is required of tokenized securities in their desired exchanges regulatory body. Tokenized Equity on TaoDust is technically a cryptocurrency but sophisticated enough to be used for more matured financial markets and stock exchanges.
Dividends and Profit Sharing
Once distributed and in the possession of its owner, tokenized assets can then pay dividends. These transactions will be automated by the smart-contracts which originally issued the tokens.
Free From Centralization
Security tokens are stored and transferred through a distributed network of blockchain nodes. In the case that one node ceases to exist, the blockchain will continue to operate. This distributed model is unlike a central bank, who if they were to cease-to-function, would in-turn cause a collapse of any underlying economy that was dependent upon its support.
What this means to crowdfunding is that the Ethereum tokens issued by TaoDust will be portable, making them free of reliance on only one central issuer, nation, or economy.
New Liquidity Sources
Crowdfunding on the TaoDust Platform allows for the tokenization of an asset on the ethereum blockchain, therefore it removes the complication of selling illiquid assets; whether it is shares of a company or shares of a house the equity or ownership interest can be tokenized and distributed to multiple owners.
With our platform, we combine crowdfunding to the liquidity network of the global cryptocurrency market so that tokenized securities issued on TaoDust are more accessible than any other crowdfunding platform today!
Instant Access to Secondary Markets
By tokenizing assets on the blockchain, geographical problems are eliminated. Any startup that is launched on the TaoDust platform has global visibility which allows them to sell equities locally and worldwide.
When the investor decides to sell their equities, they can do it as soon as it is issued because the tokens, or blockchain representation of the equities of the startups, are liquid for nature. By accessing a decentralized network of global exchanges, investors will be able to sell at market value, exactly as the stock market.
Trust
We intend to raise the level of quality of offerings by introducing TaoDust issued securities to cryptocurrency investors and tokenized asset offerings to traditional markets. With the capability for startups to whitelist investors through built-in KYC/AML compliance, blockchain auditing, the future of equity crowdfunding will have a higher bar of excellence than the previous generation of ICOs.
Low Fees
No need for middlemen, everything is efficiently automated via smart-contract which in many cases replace the need for expensive regulatory and compliance oversight. In comparison to financial institutions and their 7% brokerage agreements and an additional 8% total retained fee, TAODust only keeps a ~4.8% platform fee to fuel further growth and development of the other projects within the TaoDust economy.
Easy to Use for Project Creators and Investors
Startups raising funds through an Equity Token Offering on TaoDust will have a platform which easily connects their offering to a global marketplace of institutional and unaccredited investors.
The platform is designed to make the process of registering a tokenized security as simple as setting up a crowdfunding campaign; this is what we mean we talk about equity crowdfunding 2.0. The future of startup capital through tokenization is here! Welcome to Taodust!
Thank You!
If you would like more information please follow this publication about how equity crowdfunding and TaoDust can help you and don’t forget to visit our website.
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