Understanding Business Tokenization
Blockchain as a tool for innovations has cut across so many industries and has changed perspective about finance from removing central system and bringing more bank fewer people on board, it has also made it easy for cross border payment all further allow businesses in a process converts their rights, benefits to a particular unit of value, assets, shares, and equity into digital tokens that can easily be exchanged and accessed by crypto users.
And just like buying stocks and shares in businesses and startups, tokenization helps brands in selling ownership stakes in publicly traded and private business corporations that give token holders an opportunity to participate in the company’s growth and be part of the decision making process as most tokens give holders access to governance.
How Tokenization Works and Its Effect on Business and Startup Funding.
Blockchain provides a database for decentralized data storage that brings about more transparency and facilitates the digital currency cryptocurrency which represents value.
This value could be anything such as Business shares and stocks making it seamless for people to buy and even give more market entry as it can be traded on open marketplaces and Exchanges like AFRIDEX and allows people to buy even units of shares and invest as low as 10$ or minimum trading amount for the platform where these tokens are supported for trading.
AFRIDEX’s model is to ensure that businesses and startups can further gain more investors and leverage the blockchain technology features to further make business investments seamless and easy.
Beyond just Cryptocurrency, these shares can be represented by Non-fungible tokens as in the case of real estate leveraging on their rarity to represent business values that can be liquidated back to fiat easily. You can read our last article here to learn about Non-fungible tokens.
With AFRIDEX’s launchpad model. businesses and startups will be able to access funding by listing their tokens for sale at a price during the period of launchpad subscription with interested buyers using specified cryptocurrency to buy these tokens before they are finally listed to be trading on the AFRIDEX exchange.
It is believed that this will help brands and businesses who mostly depend ongoing through YC that takes 7% of the funds raised during the process and make it easy for crypto holders to have opportunities to do more with their assets.
AFRIDEX Exchange is a blockchain-backed cryptocurrency asset exchange that is poised at redefining the financial sector by creating novel and unique trading features that will create interconnectivity among individuals and corporate organizations. The AFRIDEX Exchange set to be live in about six weeks amidst other use cases will help businesses and startups tokenize their businesses and innovations.