asset tokenization

Tokenize Everything. This seems to be the buzzword at the moment around the blockchain and cryptocurrency realm. Several traditional financial assets companies such as J.P. Morgan, Fidelity Investments have started to move into assets based tokenization. The cryptocurrency market has evolved itself from Bitcoin to ICOs and now to TAO ( Tokenized Asset Offering ). The expansion of cryptos into the Security Token is a natural progression since it allows traditional asset management companies and other institutional investors to participate in blockchain related projects.

The future is going to be powered by blockchain technology. This technology, also known as digital ledger technology, has the power to process transactions without the need for middlemen. Moreover, the network chronologically records all transactional details and cannot be hacked or manipulated.

An Equity token offering is a fundraising event that runs on blockchain technology. Companies offer Equity tokens to investors. The equity token is a digital token backed by a company’s shares. The following are the characteristics of the equity token:

Equity financing of new firms/businesses is usual practice that is conducted to dilute shares, in order to raise capital. Conventional methods consist of existing shareholders carrying out dilution of the firm, so prospective investors can obtain capital in several rounds. There are two primary phases in equity token based finance, these are referred to as private locked up phases and public liquidity phase.

You can retain the stocks as non-dilutable over the course of the lock-in period. The tokens are available for prospective investors via Equity Token Offerings. (ETOs)

The different benefits of tokenization

The reasons why tokenization is attractive can only be attributed to blockchain which presents a series of advantages:

Immutability – a transaction record and the record of ownership is permanent and cannot be erased.
Universal accessibility – a smartphone with a connection and the credentials to access the data is all you need to affect a transaction from any part of the world at any time of the day.
Cost effective – the smart contracts that control the blockchain eliminate the need for any medication that might translate into costs.
Transparency – the immortality of the blockchain eliminates any possibility of asymmetry of information that might arise during the transfer of ownership.

The tokenization of real estate asset is highly complicated and requires cutting-edge technology such as blockchain and smart contracts. Currently, Real Estate Investment Trusts (REITs) are publicly listed and provide liquidity to the fund, but they are expensive for retail investors. Some REITs have a minimum entry for investors at $25,000 or higher. However, tokenizing might give retail investors to hold $10 worth of tokens of top buildings like the Empire State Building.

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Blockchain App Factory is an industry-leading ICO marketing company in India. Blockchain App Factory’s comprehensive experience within the cryptosphere and in the domain of blockchain technologies makes its services among the best in its class.

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ICO, or Initial Coin Offering is the technology utilized to obtain funds through crowdfunding by issuing crypto tokens/coins. ICO marketing is a critical aspect of your ICO’s launch to ensure visibility for your project, so it can attract, convert, and retain the investors it requires.

As the technology is relatively nascent, not a lot of firms offer ICO marketing services. Experience is a very important factor when choosing among ICO marketing companies. ICO marketing is therefore, a niche service that is very business specific. Blockchain App Factory is an industry-leading company with extensive experience within the cryptosphere and in blockchain development.

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ICO promotion services are a critical aspect of your ICO’s development. Promoting your ICO helps it to obtain the visibility that it requires to succeed. Being different from the herd is very important in today’s crowded ICO environment. Convincing prospective investors is a job easier said than done, and effective ICO promotion enables the retention and conversion of investors.

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ICO marketing is a critical aspect of your ICO’s developmental cycle. ICOs are a dime a dozen these days, and there has been a corresponding increase in the presence of ICO marketing companies. An effective ICO marketing company has extensive hands-on experience in the cryptosphere and within the domain of blockchain development.

Asset tokenization utilizes digital tokens to denote fractional ownership in assets like real estate property, fine art, and valuable metals/stones. There is no restriction as to what can be tokenized. Smart contracts handle ownership rights. Tokenization opens up investment for smaller scale investors, and for existing investors that are intending to diversity. Tokenization is a low-risk investment avenue for the latter.

ICO marketing is a critical part of your ICO’s development cycle. Marketing is crucial to attract, retain, and convert prospective investors in your project. ICOs are ubiquitous these days, and as a result, it is very important to differentiate yourself from the crowd. More importantly, marketing is necessary to establish the integrity of your ICO.

ICO scams are a dime a dozen these days. Here’s a staggering statistic for you: 70% of ICOs that were started in 2017 were scams. That’s right, one in seven ICOs are a scam, that intend to do nothing more than take away investor’s hard earned money. Marketing becomes crucial to establish your integrity and seriousness.

Blockchain App Factory is one of the most reliable security token offering development service providers. Our optimized security token issuance platform enables easy liquidation of large assets, access to investors from around the world and allocate tokens in a simple manner. We help you at every stage of the STO launch such as publishing white paper, blockchain development, STO marketing and more.

The team of Blockchain App Factory are pioneers in providing equity token offering services and blockchain technology, and so they offer all inclusive services right from token creation, wallet creation, exchange software development, marketing services, security integration etc and all the services are provided at the best rates available in the market.

Asset Tokenized Offerings are trending, and are currently the buzzword within the cryptosphere. At this moment, ATOs are more the future of the blockchain than ICOs. Asset Tokenized Offerings are set to drive adoption and legitimize the space.

Tokenized Assets are given to prospective investors through what are referred to as STOs (Security Token Offerings), TAOs (Tokenized Asset Offerings), or ATOs (Asset Tokenized Offerings). They provide an undeniable set of benefits to the domain of purchasing and selling securities. Tokenization of assets enable the transferring of physical assets from one location to another, and to redefine ownership -- fully in the digital space.

The following are a few features of Asset Tokenized Offerings (ATOs):

-> ATOs are an evolutionary phase of ICOs (Initial Coin Offerings) and STOs (Security Token Offerings)
-> High cost barriers are reduced / eliminated
-> Geographical restrictions are done away with
-> Reduced capability to invest in larger assets due to investment strength is eradicated
-> Investors can enjoy good returns while engaging in diversification of their portfolio
-> They enable smaller investors investment opportunities

The tokenization of real world assets is expected to create a revolution within the realm of blockchain. Tokenization is set to redefine investing, as the tokenization of real world assets enables fractional ownership of assets, inducing smaller scale investors into the game, and providing a low-risk diversification avenue for existing investors. Anything can be tokenized, from real estate property, to fine art, to valuable stones and gems.

Asset tokenization Platform is an innovative new method of investing where physical, real-world assets are allocated tokens. These tokens indicate ownership of the asset. Asset tokenization enables fractional ownership of assets, opening up investing to a class of investors who may not have otherwise had access to the investment option.

The functionality of equity tokens is comparable to that of a conventional stock asset. Owners of equity tokens have some kind of ownership in their investments. Equity tokens can be categorized into dilutable and non-dilutable tokens. In dilutable tokens, the amount of tokens displays the number of shares in the firm which is on a smart contract. In non-dilutable tokens, every token is a percentage share in the company.

Equity tokens enable fledgling companies to raise capital quicker. Equity tokens can be issued either through private or public platforms. Effective equity token platforms automate the complicated parts of fundraising and equity while providing you enhanced speed, simplicity, and clarity throughout the process.

ETOs are an efficient tool for traders as equity tokens are gaining popularity due to their enhanced security and technologically progressive feature sets. ETOs are even more effective when they have been developed with the organization in mind. The two primary phases in equity token-based finance are the private locked-up stage and the public liquidity phase.

Equity token development falls under two major categories

Dilutable tokens

With regards to non-dilutable tokens, the firm sanctions to generate a lot of stock, however, only a portion is put out to investors and stockholders, the remainder can be used to sell later on.

Non-dilutable tokens

In non-dilutable tokens, every token is equivalent to a percentage share in the firm. The investor owns a fractional share of the firm, as they long as they retain ownership rights to the token.

Tokenization is an emerging trend. Anything can be tokenized, and it enables fractional ownership of assets that may otherwise not be accessible to small-scale investors.

The assets industry at present suffers from a lack of transparency, efficiency, and is prone to risk. Blockchain technology allows for the digital representation of assets with smart contracts. Tokenization could possibly create a revolution within assets management.

Asset tokenization offering, as the name indicates, is the offering of asset tokens. These tokens indicate partial ownership in a tangible asset. Asset tokens are tokens that are pegged against physical, real-world assets.

Tokens are offered through Asset Tokenized Offerings, a variant of a crowdfunding event in which the digital tokens that are included in the offering are categorized as securities.

*Asset tokenization *is generating increasing buzz on how to move conventional assets onto a blockchain setting. This shift into blockchain through the process of tokenization provides a host of benefits.

Tokenization enables fractional ownership of assets
It opens up investment avenues for smaller scale investors and for investors looking to diversify in a low-risk way
It enables liquidity of assets, particularly problematic in the real estate industry

These benefits have led industry analysts to bank on asset tokenization as the investment vehicle of the future. Investing is expected to never be the same again.

Why Asset-backed Tokenization?

Asset-backed tokens, or security tokens, enhance the prospective initial raise for fund operators, and other entities that issue securities. Moreover, it is advantageous for crypto fund managers to develop cryptographic analogs of conventional assets to enhance the liquidity of underlying assets.

Liquidity can be described as the ease and speed with which assets are sold or purchased at market price. Typically, bonds and stocks are assets with increased liquidity, in comparison to assets such as vehicles, real estate, art, jewelry, and collectibles, which don’t have access to increased trading volumes, trade opportunities on exchanges and liquidity.