Equity crowdfunding for startups
Equity tokens are digital tokens that are issued by companies and are backed by stock. Since these transactions are recorded on a blockchain network, they exist perpetually and cannot be altered. This assures high-end security for investors and companies, diminishing the danger of fraud. It is fundamentally the equivalent to crowdfunding but on a blockchain network.
Investors who want to invest in a company buy shares with their cryptocurrencies. The benefits they will receive are:
- They enjoy rights like any shareholder in a company would.
- They have the right to vote and are also be paid dividends.
- There is no third party required and therefore it allows the investor and the company to have uninterrupted contact.
- There is also no necessity for a mediator such as a bank to carry out transactions.
- Everything is handled on a digital platform.
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