Tokenisation
By Emily Pavlou, OneCycle
Tokenisation of assets refers to the process of issuing a blockchain token (specifically a security token) that digitally represents a tradable asset. These security tokens can be traded on a secondary market.
The tokens act in the same way as any other traditional security or investment contract, and are subject to the same rules and regulations.
The way we invest is changing
Security Token Offerings to account for 32% of early-stage funding by 2022 ( Opimas Consulting)…
The way we invest in assets has begun to fundamentally change since the arrival of tokenisation, with rapid disrupting in the technology sector.
There are many reasons for this. Predominately, benefits to both the investor and the start-up (or seller/issuer of the tokens).
Tokenisation Example : OneCycle Limited
A sustainable and green company, OneCycle decided to maximise the benefits of a token fundraise.
OneCycle is a Green NanoTech, that extracts magnesium directly from the sea in a sustainable and carbon neutral way. They are transforming how we produce nano-particle sized magnesium, known as MgO Nano. After thorough consultation and liaising with key stakeholders, they began fundraising through a FCA compliant security class asset/security token offering, backed by the physical magnesium or nano-particles produced.
Fundraising for this build has begun via a tokenised asset – the Magno token – attracting both traditional and the new breed of investor through the global nature of blockchain. Key benefits of this tokenised offering so far, are asset liquidity, and a less expensive source of growth capital – both a priority for a company like OneCycle that plans to grow at a high rate. The MagNo token is currently issued at less 50% of underlying realisable products market value.
What do technology start ups need?
Asset liquidity…
