Equity Tokens Start New Era in Crowdfunding

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by Eugenia Kovaliova · 3 min read
Equity Tokens Start New Era in Crowdfunding
Photo: Stamps platform / Twitter

The Stamps Equity Token Platform is providing a revolutionary alternative to the more complex ICO models. Next step in the evolution of fundraising.

Raising capital has always been and continues to be the first thing first when launching and scaling a new business. Since the times have changed, simply heading downtown to a local credit union for a loan is not the best way to raise capital anymore. For a great amount of tech entrepreneurs the method of crowdfunding via Initial Coin Offerings (ICOs) has already become a more realistic alternative.

Crowdfunding represents itself as a new phenomenon that has taken the fundraising world by storm. It allows investors to go directly to their friends, neighbors, and potential customers for equity-based financing, so that anyone with a laptop and good internet connection now has a very real chance to become a potential venture capitalist.

With such popular websites as Kickstarter and Indegogo allowing millions of people across the world to invest in the next groundbreaking product, non-traditional equity-based financing has opened a whole new world of opportunities for savvy entrepreneurs.

This new world of chances has brought about the ICO boom, which stroke in recent years. The growing demand for cryptocurrency crowdfunding services, in its turn, has contributed the development of service providers and platforms that facilitate token releases.

The Stamps Equity Token Platform represents the new-generation groundbreaking project, allowing companies to engage in a crowdfunding campaign by releasing equity tokens, providing a revolutionary alternative to the more complex ICO models.

Issuing equity tokens is a new innovation in small-business fundraising that has been made possible through recent advances in technology. Businesses, who have a great product or service, can now release digital equity tokens that represent ownership shares in their companies to a community of enthusiasts that are most eager to see them succeed.

Equity tokens differ from traditional equity financing methods. Instead of being sold to potential customers, they are gifted to the existing community of STAMP coin holders. The value of the company is then created by the market that is formed around their equity tokens.

The Stamps platform gives companies a way to issue marketable encryption tokens that represent legal capital in their company. This is a revolutionary alternative to the traditional ICO model, in which an entrepreneur works hard to develop and release a token into an extremely volatile and unpredictable market.

Unlike a regular ICO, a Stamps equity token release involves businesses gifting equity in their companies to STAMP coin holders. This release of equity tokens involves no commitment from the company doing the fundraising. On the opposite, the company retains a portion of the initial equity token release while the rest are gifted to STAMP coin holders.

Once market demand for the equity token emerges, the business can liquidate some or all of its retained tokens to fund its operations. If no market demand emerges within a specified timeframe, the equity tokens are destroyed and the equity is returned to the issuer, free and clear.

And everything mentioned above is just a tip of an iceberg. Stamps platform users will have much more benefits, which are fully described in the company’s Whitepaper. Stamp has planned a soft cap raise of $1 million and a hard cap raise of $89 million.

Blockchain News, News, Token Sales
Eugenia Kovaliova

Eugenia can call herself a multy-interested person, as she is always in search of new proffessional fields to encompass. After graduating from Belarussian State University with Bachelor degree in both International Communication and Public Relations, she joined a travel startup Fresh Adventures, where she worked for 3 years creating unique itineraries through exotic countries, travelling around the world and developing the company as a partner. Currently, she works as a business analyst in the field of information technologies. She believes that IT is the future, that is why it is so important to keep up with the latest trends in this rapidly growing industry.

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