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.

Stay ahead of the curve by shifting from traditional to modern-age tech. Visit Blockchain App Factory, a leading equity token development company, to build secure ETO platforms for your business.

 

Beginner Asked on April 16, 2019 in Technology.
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