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What does token crowdfunding mean (what is token financing)

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What does token crowdfunding mean (what is token financing)

What does token crowdfunding mean? Token crowdfunding refers to a new and groundbreaking project established for a new technology initiated by a company for crowdfunding. In the field of blockchain, “ICO” and “Token Issuance” achieve their goals through crowdfunding, allowing people to participate in various forms of economic activities through crowdfunding

According to CoinMarketCap data, the total market value of global Cryptocurrency reached US $619 billion on September 17, 2019, up about 20% from the beginning of the year; Ranked first is Bitcoin, currently priced at $12.95, with a 24-hour increase of 13.4%; The Swiss dollar ranked second, temporarily at $0.113, with a 24-hour increase or decrease of 15.23%. In addition, Japan ranks third in market value, and as of April 29, 2020, the trading volume of its virtual digital asset exchange exceeded $50 billion. (PANews)

What is token financing

Token financing is a new type of capital flow method in the financial market. In the field of blockchain, there is usually a concept involved – ‘investment’. Simply put, it means raising funds or purchasing equity in a project by issuing tokens. Tokens can be used to fund activities such as project development, construction, and infrastructure management, as well as to help investors participate and earn profits, all of which are transactions completed by smart contracts The current popular investment method in the market is to invest in the form of tokens. In general, the “seed stage” and “strategic round” (A round) are both referred to as the initial stage. “Private placement” is a structural token financing mode (Initial coin offering) with equity as the core. This approach, also known as ICO, involves selling an asset to another entity before converting it into tokens. The main advantage of this form is that token holders can sell tokens to investors at a specified price at a specific time; They can use the company stocks or fund shares they invest in as a return for payment; Investors can determine the price changes of tokens by voting on the agreement; Token owners can make changes based on their chosen partnership and risk preferences.

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