The phenomenon of tokenization, which enchanted the world of cryptocurrencies, has the potential to break through even in traditional investments. It’s just a matter of how to overcome the risk of fraud operating in the crypto world, where up to 93% of projects end in failure. However, experts see the future in this direction. There is even talk of the birth of a new economic order.
Tokenization a solid foundation
Blockchain, as a decentralized, globally shared and transparent database, gives real estate tokenization a solid foundation on which to operate. Some even see the future in it on a much broader scale. “Blockchain will soon become our “internet of value”. We will exchange and trade music, apartments, electricity, goods on it, just like on the Internet, track their origin, change of owners, run “smart” contracts, vote on everything possible, including the parliament.
All this in a decentralized manner, without any central accounting, administrative or notary authority, which we would have to trust and somehow control. Now an expert on the digital revolution, who will also speak on the topic at the XIXOIO First Crypto Banking Conference in the World.
“The token is the ideal unit for the future of finance and investing. It’s digital, it works on the blockchain, and thanks to this, tokens can be transferred very quickly without the need for an intermediary,” says Richard Watzke, head of XIXOIO. A token can represent, for example, a contractual relationship between an investor and a company. For several years, such a practice has been operating in the crypto world and also attracts the environment of classic investments.
The biggest problem with ICOs is fraud
ICO is a well-known term in the cryptocurrency world. It is an abbreviation of the English words Initial Coin Offering, which can be loosely translated as the initial offer of digital currency. That is, the first public sale of a digital currency even before this currency reaches the exchanges. Projects based on cryptocurrencies are thereby trying to obtain capital for their further operation.
The ICO was inspired by the classic IPO (Initial Public Offering), which is a public offering of shares. When a traditional firm wants to raise additional capital, it may offer some of its shares to the public for sale. Interested members of the public pay a certain price for the shares and the company thus obtains capital.
However, an estimated 93% of all ICOs fail. A large part of them is a fraud or the recipient of the money loses motivation to do anything else after receiving it. If there is no way to claim these funds back, it leads to a loss of motivation. The current state of the ICO market is complete chaos, where both fraudsters and quality projects with real potential can gain ground.
Potential for corporate financing
“Tokenization has a huge potential to connect companies with investors. Convenient and simple. It is enough to eliminate the risk of fraud faced by ICOs and introduce the whole model to companies and investors by incorporating it into the existing legal framework. This will lead to a real crowdfunding revolution in corporate financing,” says Richard Watzke, head of XIXOIO.
Then converting a certain asset or contractual relationship into a blockchain token will be simple and fast. The current conference XIXOIO First Crypto Banking Conference in the World will deal with the topic of tokenization. “The conference is a unique opportunity for every visitor to be at the birth of a new world of investing. It is an opportunity to personally meet the capacities of the field, but also to gain unique know-how on how to use blockchain technology to obtain resources for business development or how to use it to invest smartly as a natural person,” reveals Richard Watzke from the company XIXOIO, which organizes the conference.