Through tokenization, investing is cheaper, faster, more secure and available every hour of the day. This opens up real-world assets and the world of cryptocurrencies to people who previously may not have been able to invest due to geographic or financial restrictions, and offers an alternative to traditional and largely outdated investment methods.
In this article, we’ll explain what tokenization means, and an promising of project of asset tokenization, Soraix.com.
WHAT DOES IT MEAN TO “TOKENIZE” AN ASSET?
Tokenization is a relatively new term used to describe a cryptocurrency fund raise in which investors exchange fiat or crypto currency for “tokens”.
In a nutshell, tokenization is one way to securitize real assets.
To securitize an asset means to divide it into shares that you can sell to investors. In the same way, to “tokenize” an asset is to divide it into shares, or “tokens”, that represent a predefined share of the underlying asset. They are therefore often called “equity tokens”.
These tokens are secured through the immutability of blockchain technology, and they’re tradeable via crypto exchanges.
CREATING A NEW EQUITY TOKEN
When a company decides to tokenize its stock, an equity token is created to represent shares of the stock. The total value of equity tokens will be equivalent to the total value of the asset. Let’s look at a simple example.
Imagine that you have some property — say an apartment. You need cash quickly. The apartment is valued at $150,000 but you just need $10,000. Can you do this quickly without much friction? To my best knowledge, this is next to impossible.
Enter tokenization. Tokenization is a method that converts rights to an asset into a digital token. Suppose there is a $200,000 apartment. Tokenization can transform this apartment into 200,000 tokens (the number is totally arbitrary, we could have issued 2 million tokens). Thus, each token represents a 0.0005% share of the underlying asset. Finally, we issue the token on some sort of a platform supporting smart contracts, for example on Ethereum, so that the tokens can be freely bought and sold on different exchanges. When you buy one token, you actually buy 0.0005% of the ownership in the asset. Buy 100,000 tokens and you own 50% of the assets. Buy all 200,000 tokens and you are 100% owner of the asset. Obviously, you are not becoming a legal owner of the property. However, because Blockchain is a public ledger that is immutable, it ensures that once you buy tokens, nobody can “erase” your ownership even if it is not registered in a government-run registry. It should be clear now why Blockchain enables this type of services.
Thus, we took an asset, tokenized it and created its digital representation that lives on Blockchain. Blockchain guarantees that the ownership information is immutable.
The next step is to sell the tokens to investors.
MEET SORAIX PLATFORM
Let me introduce you Soraix.com, a platform where the companies of all sizes to raise capital via their own ETO (Equity Token Offering) to open an investment opportunity for equity tokens representing fractional interest on their assets. Soraix aims to transform traditional stock exchanges by tokenizing the exchange of assets via blockchain technology, resulting in wider adaptation and stability in the industry.
HOW INVESTORS AND OWNERS BENEFIT FROM SORAIX
Soraix Tokenization Platform removes the middle man, making it easier and cheaper for investors to buy/sell company stock and for owners/developers to raise capital. Investors can trade tokens almost instantly and for a very low fee (similar to stock market trades). For owners, tokenization makes it possible to raise capital without financial intermediaries to underwrite the project.
Company Stock market has historically delivered attractive returns, but it has high barriers to entry because the assets involved are so expensive. Investors in tokenized assets get the best of both worlds: the high returns of investments (even with a very small investment), and the liquidity of the stock market.
It’s also important to note that because equity tokens are backed by real assets, they carry far less risk than other cryptocurrency tokens, which are highly volatile and speculative assets. What’s more, traditional users will benefit from Soraix one-of-its-kind revenue sharing model, which enabling them to trade their Soraix Tokens (SRX) using a 1:1 peg against Equity Tokens issued on Soraix platform by companies raising capital, regardless of the value of either token.
SORAIX ICO
In order to bring the platform to live, Soraix is currently conducting an ICO of SRX Token. The ICO is open to investors of all portfolio sizes, with no minimum token purchase, enabling the vast majority of those interested to participate in this opportunity.
The ICO has started on August 26, 2019 and will be ended on November 24, 2019. An amount of 60% (600,000,000) of SRX Token supply (1,000,000,000) will be available to purchase. With the initial price equivalent to 0.00025 ETH per token, Soraix developers intend to collect in the minimum target of $4,500,000, and maximum of $24,000,000 during the ICO.
For more information, you can visit these following links:
Website: https://soraix.com/
Whitepaper: https://soraix.com/static/whitepaper.pdf
Facebook: https://www.facebook.com/soraixteam/
Twitter: https://twitter.com/Soraix3
Telegram: https://t.me/soraixico
Author's Bitcointalk Username: Tpq01349
Profile Link: https://bitcointalk.org/index.php?action=profile;u=1972940
ETH Address: 0xA73fA2565C18218AC6510c8CD3B220F5794f3B84
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