Why Private Listing Tokenization Project is the New Way to Go with Crowdfunding within the Blockchain Industry
From ICOs to IEOs and STOs, we have observed different crowdfunding options in the Blockchain industry for both business owners and investors. All of these options have been found out to have their up and downside.
However, the industry appears to be taking a step further by considering the Private Listing Tokenization Project. This will greatly benefit the property owner, the masses, potential investors, and the Blockchain industry.
Since its inception, the Blockchain industry has based its transacting methodology on coins and tokens. There has also been certain migration from one level of token issuance and coin conversion to the other. Several platforms have been able to make use of different strategies in generating funds to start up in the Blockchain industry.
For a long time, the initial coin offering (ICO) was the go-to for most start-up blockchain industries to pitch their offering to investors and get enough funds to move the project in no time. But this soon faded into oblivion because of the fraud and illegal deals associated with it, due to lack of regulation.
Soon, IEO looked like the saving grace, but this method also did not last long as only members were permitted to invest by getting the tokens. In 2018, especially in the latter part, several companies started coming up with the idea of regulating the industry by working with securitized tokens, and this birthed the Security Token Offering (STO).
Why it Replaced ICOs, IEOs & STOs
The main idea behind STO offering is to offer investment opportunities into the Blockchain industry to just anyone. This means that assets and property owners can technically include their business in the Blockchain industry. They make this possible by offering tokens to just anyone willing to invest in their properties and enjoy the dividends in the long run.
The beautiful thing about STO was that it involved no mediator or broker, and the investors could go-ahead to get the tokens and even immediately use it to complete transactions in the Blockchain industry. STO looked like the perfect replacement of ICOs and IEOs; however, several investors began to question the authenticity and goal of its creation.
The incorporation of regulatory bodies like the US Securities and Exchange Commission into the system started causing potential investors to question the anonymity that the offering can produce. More so, most of the property owners still could not get an endorsement from these regulatory bodies just in time, making their legitimacy doubtful. This caused the birthing of the Private Listing Tokenization Project.
How it Works
Security Private Listing Tokenization Project is an advanced form of STO in which property owners can bring their investors under the Blockchain industry by offering them tokens in the form of stock and making it convertible to different currencies.
However, it’s important to mention that there are certain Private Listing Tokenization Projects that run a Utility Token or Hybrid, therefore there is no need for acquiring a license under the Security Exchange Commission. This is something that the owners of the Project prefer. However, the Investors prefer to invest in a Security Project since the laws will protect them.
What stands Private Listing Tokenization Project out is that there are already registered regulatory bodies on the ground who can readily make it happen within minutes as soon as the property owner is ready.
Hence, this leads to:
- Eradication of time wastage when launching the tokenization project
- Increased level of security, since the project will be functioning under a certified network.
- Ease of purchase for investors who do not have to rely on brokers or risk declaring their assets to government regulatory bodies.
From this standpoint, it is evident that Private Listing Tokenization Project is gaining more ground among investors and property owners and has a high chance of being the future of crowdfunding for both small and medium-scale businesses.