OnPlace is getting ready to launch their token generation event, the official start of which is set on next month. The blockchain-based startup will commence a pre-sale of its platform’s native token, with the hope that it will help to attract investors to the project’s both short-term and long-term vision.
The startup’s goal is to create a decentralized community of investors via blockchain tech, that would make it simple and easy to invest in IT-related companies. The company plans to do it through a tokenization of assets with the help of its Private Assets Tokenization System (PATS) protocol.
Before planning its token sale event, OnPlace has already generated a significant amount of funding through more traditional methods of financing, such as crowdsourcing. Only a few months after its founding in 2016, OnPlace has already been able to secure $900,000 during its seed round of funding.
Following their initial funding effort, the startup was able to generate another million of dollars through a crowdsourcing platform, after they launched a closed alpha for early investors. Since then, the company’s success was followed by its expansion, which resulted in new offices being opened beyond its Russian headquarters, in Hong Kong and the US.
The team behind OnPlace holds on to the view, that private IT industry is where the company’s efforts suit best, as they consider IT the most lucrative investment area in the business right now.
“We can say with absolute certainty that investment into private IT companies has become one of the most reliable ways to get a high return percentage on investments in a relatively short period of time.“
The basic idea behind OnPlace is to make it easier for an ordinary person to become an investor in a private company. The company plans to accomplishing this goal through extending the ICO funding mechanism to investments in private companies.
The process begins with the community behind the project, looking forward to the Marketplace Opportunity WIndow phase of implementation. This is where participants can find profitable ventures to invest in, using the OnPlace platform.
The next step is applying OnPlace’s PATS protocol on traditional shares of private companies, tokenizing them in order to make them available for purchasing and sale on OnPlace’s private exchange platform. Finally, investors buy and sell these tokenized assets, which represent smart contracts backed by company’s shares. These tokens can ultimately be exchanged on public exchanges at some market-given price.
Lowering the cost to entry allows people with considerably less capital to get involved in financing startups, which itself could increase the amount of capital available to private companies in general and make it easier for these companies to get funding.
By August, 2018, OnPlace hopes to have its coins in circulation and by January next year the company plans to fully launch the platform. Before all of that, however, the startup will begin its token sale event in February this year.