You have most likely heard about cryptocurrencies, such as Bitcoin, Ethereum or Ripple to name a few, as they dominated the news in 2017 and 2018 due to their meteoric rise. But have you ever questioned how a cryptocurrency is created in the first place and how it operates before it becomes popular and tradable?
At first, there is an idea based on blockchain technology. There are many different types of blockchains that can be used by businesses.
A company puts forward the future business model that integrates tokens at the heart of it. These tokens, like digital vouchers, could be exchanged for goods or services that the company will offer. To launch this new project, that company can fundraise it via private or public sale campaign to sell tokens.
Once the company reaches its goal and builds a solution, they have an option to convert tokens into cryptocurrency which make it tradable on many exchanges.
Sounds like nothing stops new companies to just tokenize, raise capital and conquer the world. Except…creating a token in blockchain can be a daunting task that requires a lot of specialized sophisticated knowledge that young companies that want to raise capital often do not have or cannot afford. Tokensgate created a pioneering solution that enables tokenization of any company on the market and to facilitate a private or public offer.
Buying tokens at the very early stage is very attractive. You're able to buy tokens up to 99% discount to the price that will be presented at the Initial Coin Offering (ICO)
Most tokens are locked before they reach exchanges and start to be tradable, but when they reach this point they started to be liquid asset. You can sell or buy those assets without control of the company.
According to many resources, investing in wide range of tokens can give a return up to 13 times even including the failures in the portfolio. The key to token investments is to invest right and wide!