When people hear securities on the blockchain, they often think about Wall Street billionaires, like the “Goldman Sachs,” issuing their tokens.
However, at Tokenizer, we strongly believe that the impact of tokenized securities will be felt more strongly at the local level by offering security tokens. Currently, investors lack effective methods to express their localized knowledge without raising large sums of capital and acquiring entire businesses.
Improved Liquidity at the Bottom Line
Security tokens offer improved liquidity at a much lower level of the economic pyramid by deploying local knowledge. Think of a moment when you took your family out to a five-star hotel in Miami, and you enjoyed yourselves thoroughly. The management and the waiters were stunning, and their meals were excellent. As you are enjoying it, you could easily invest $200 into the restaurant’s equity.
In simple terms, security tokens create a new financial path for retail investors who may lack large sums of capital to invest. Blockchain securities act as a liquidity layer for businesses that could never carry out IPOs because they are sub-million dollar to $10 million business.
It would be advantageous for investors to be able to access businesses that have high growth potential, but are not at the level to carry out an IPO, and may never IPO. Investors would have access to a wide range of industries or the ability to invest in companies with which they have direct experiences and can directly influence.
Let us assume you own some Huawei stocks. You are more likely to buy a Huawei smartphone, but that does not precisely influence Huawei’s bottom line. Even if you recommend the stock to friends or relatives, your efforts will have no tangible impact on Huawei’s bottom line. It is challenging at the local level.
The smaller the business, the more important it would be to have many owners with a vested interest in their success.
With security tokens, investors could hypothetically exploit their local and specific knowledge of those places to create a platform that comprises of several businesses. The businesses will, in turn, enjoy access to liquidity they would not otherwise experience.
There is significant value here for businesses, individual consumers, and even investors. Individual consumers could eventually enjoy the same access to investments as venture capitalists or individuals who invest minimums of $25,000 into multiple ventures.
Tokenizer is a blockchain-based banking platform for fundraising, investing, and trading Asset-Backed Tokens (ABTs). We simplify the complex technical challenges of creating both security and utility tokens, and we strive to bring the multi-trillion dollar financial industry into the blockchain space.
By leveraging on our decentralized platform, investors can: gain access to the world’s most extensive portfolio of assets to invest in, easily track their investments and set-up alerts and advanced stop-loss actions, exit and liquidate their stake in startups, private equity in other assets before underlying assets mature, trade 24/7, and log off all dividends and interest payments made by projects.
For fundraisers and project owners, get exposure to the largest pool of investors in one platform, receive funds in the currency of choice, and get transparent ratings by using the Tokenizer platform. Contact us today and get the services that you deserve.