Neufund, one of the first STO projects based in Europe to be approved by SEC, is redefining the world of STO fundraising. The project came against the backdrop of ICO’s failure to deliver results. With STO, an investor gets a standard security in the form of tokens. With proper STO consulting, a project can raise enough funds to finance its projects.
The Berlin-based company just performed its first Security Token Offering some weeks ago, and is planning to roll out more soon.
Neufund is a blockchain-based equity financing firm that focuses on enhancing real-world assets with legally enforceable security tokens. They are developing and shaping the future of tokenized fundraising.
What’s the fuss with STO?
Because they will make the equity-based fundraising process more easily accessible, and attractive for both investors and companies. Tokenized IPOs bring forth new supervision mechanisms that are more in line with government requirements. This helps to open up institutional investment markets more efficiently as well as introducing more capital for enterprise projects.
For example, if an investor wants to buy a certain amount of stake in a company he will initially consult with his lawyers to help with evaluating the investment. He will then have his lawyers draft the contracts once negotiations have taken place. Upon making the investment, there are no open markets to easily trade the asset in case other opportunities come up.
This could surely change with the advent of Security Token Offerings. And Neufund is at the forefront of the progress. First, STOs are standardizing the actual legalities around cryptocurrencies. The aim is to lower the threshold for both investors and companies to participate. Second, the blockchain tech will eventually allow trading of assets on secondary markets.
STO future is promising
Here are the key advantages of STOs
Intrinsic value: The holder of this tokens has enjoys multiple perks, such as dividend payment, a share of the profit of a company, accesses digital and physical assets of the firm.
More legitimacy: ICOs are largely unregulated, so many companies may not participate in them. On the other hand, Tokenized initial offerings are regarded as more legitimate and can attract multiple investors.
More open: an investor can access more information of the issuing company. Thus, such an investor can make an informed decision.
So yes; this is a big deal. We can’t hide our excitement about the progress of this project. Both the tech and legal aspects are still in development. However, things are getting closer and in line with the roadmap. Neufund is growing to become a sincere platform that creates an efficient capital market for digital asset trading.
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