Traditional fundraising methods face challenges that prevent companies from facing fierce competition from within the ecosystem. This is even more true for startups. Regulatory preferences, the reluctance of banks and financial institutions to issue loans, and the difficulty of convincing independent investors are some of the factors that make adequate financing of businesses by conventional methods difficult
Opposite the
These methods and the innovative ICO model represent two extremes of fundraising techniques that retain particular advantages and disadvantages. Great flexibility is introduced by the technology of tokenization. The decomposition of products into transferable units, the value of which is totally dependent on market forces, has brought a dynamic interest to both symbolic issuers and their potential holders.
The ICO's fundraising methods destroy geographic barriers and class segregation. Country offices help open the market to a diverse and global audience. However, sometimes tokens are offered after the fact with no connection to the underlying business
Balancing the equation
Balancing the system involves finding a meeting point where business owners and token emitters can find complete expression. Such a system will allow them to benefit from the advantages of decentralization and atomized technology without knowing traditional resistance. At the same time, investors and token holders should be required to hold shares that are not limited to tokens.
To this end, the Stamp platform uses Blockchain technology to provide a safe, inexpensive and transparent path. entities around the world to issue equity. They do so in the form of exchangeable tokens that represent a share of ownership of their business. This unique move satisfies the discontent within the industry and offers businesses and investors the opportunity for a stable and transparent market. Issuers can reap the benefits of token technology, while investors can maintain tangible equity in the companies that direct such investments.
The Stamps platform uses an augmented version of Blockchain's emerging technology. Boosting the Soferox dual-channel infrastructure, Stamps will streamline the process of issuing equity securities. Unlike traditional financing methods, when a company issues tokens on the Stamps platform, it immediately has a large number of lenders who own a share of the business and prevent that the Offer is considered a security.
A pioneering architecture (Proof of Pact) that uses two distinct Blockchains to carry two different data sets. A Blockchain contains transactional data and is immutable. The second Blockchain contains the rules that regulate additions to the transaction chain.
Intrinsic Rewards
The Stamp Platform also allows the issuing organization to create structural benefits including:
Dividends – A share of corporate profits, distributed at regular intervals to equity token holders via Bitcoin.
Voting Rights – Holders of stock tokens may take part in certain high-level decisions of strategic value for the company, such as the following. election of board members or the issuance of new tokens.
Increase in Participation – Increase in equity value of equity tokens. An organization might decide to increase the amount of equity awarded to certain equity token holders. This is particularly useful if the valuation of the company has changed, or if an organization wishes to issue new equity tokens without diluting the existing STAMP holders.
Merger or Acquisition – In case of stamp – the organization of the issue is acquired, the holders of stock tokens will be cleared via Bitcoin based their participation in the organization.
Blockchain technology is still in its early stages of development and several twists will still be expected. Until now, both conventional methods and ICO processes have failed to provide total benefits to all concerned parties. Therefore, finding a balanced system that satisfies the goals of symbolic issuers and investors is a step towards the stability and value delivery of Blockchain technology.
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