In these present days, we are running for the best ROI by investing the capital and raising the funds through them. It includes peer to peers loans, selling share stock in markets.
In this present strategies, even small startups can get raise through the tokening system. Tokens are useful to earn money by bidding their project shares. It is the Major key points to raise funds by selling the project white paper in this much border market.
In this article, we going to discuss the differences between STO & ETO
STO has invented to overcome the illegal fraudulence of ICO STOs can include companies offering tokens redeemable for precious metals, tokens backed by another asset such as real estate, tokens that represent shares in a company or tokenized debt that functions in a similar manner as a corporate bond.
While holding an STO is much more constricted than an ICO, companies are increasingly drawn to this fundraising model as it provides a good legal foundation to raise funds.
Investors may also be more comfortable with the smaller degree of risk that is associated with regulation.
Equity token is the process of investing in a token and getting a part of shares from the company. The percentage of token they invest will be equal to the value of the investing company shares. Shareholders can grab their ownership for their investment.
Investors, in return, are purchasing tokenized equity holdings, which represent a claim on the company’s assets and may come with shareholder voting rights.
Unfortunately, I'm new to cryptocurrency.
ReplyDeleteI read about Bitcoin only from here https://bitcoinbestbuy.com/quick-guide/ where I learned a lot of new things for myself.
So I wonder how exactly these tokens work :)