Month: December 2018

How Blockchain Can Help you to Raise Money

If you are still thinking that funds can be raised only by way of traditional methods like Initial public share offering, venture capital etc. -get ready to learn the latest, speediest and convenient mode of fundraising.  You will be surprised to know how technology has advanced.  Money can be raised even by blockchain.  Read on to know how:

  1. Initial Coin Offering: Under initial coin offering, just like subscribing for shares, one can subscribe cryptos. ICO normally has a maturity date.  Even if you need to sell it before maturity, you can sell in the crypto exchanges.  For detailed information visit CoinSpot Review 2018 – Australian Cryptocurrency Exchange.  It is obvious that just like IPO, ICO can be used for raising fund.  This shows that crypto is the future of share market too.
  2. Crowdfunding: Startups find it very easy to raise funds using blockchain.  They issue tokens which are bought by investors.  These tokens are under the safe custody of cryptocurrencies.  Hence once the startups list them on the exchanges, the transaction becomes transparent.  Thus blockchain reduces the cost involved in fundraising.  The entire process is simplified.

Advantages of raising funds using blockchain:

  1. It is faster and less costly.
  2. It is safe as it is safeguarded by the crypto
  3. It is transparent and does not involve any hidden risks.
  4. Fundraising can be beyond borders. Anyone across the globe can invest in the ICO or crowdfunding.  Hence it is easy for startups and businesses to pool funds.

Soon the traditional methods of fundraising would become obsolete.  The traditional methods lack transparency and are very slow functioning.  There are many legalities and procedural aspects involved.  Also, liquidity is not available to investor easily.  There is no doubt that soon blockchain fundraising would replace the traditional methods.