Within just two years of popularity, the blockchain has attracted the attention of various large-scale firms, financial institutions, technology companies, and states alike. It presents a novel way of interacting financially, potentially providing us with an alternative that will entirely make fiat currency and financial intermediaries irrelevant and unnecessary. One of the important ways through which businesses have sought to integrate the blockchain into their financial models is through tokenization, which is mostly a method through which the use of fiat currency and financial intermediaries in making and receiving payments, or in any financial transactions, is eliminated and an alternative economic system is a development whereby all financial dealings are done on the basis of cryptocurrency tokens. The ICOBooster team headed by Giacomo Arcaro, Davide Zucchetti and Davide Baldi understand that the entire process may seem extremely confusing, but bear with us! By the end of this blog, it will jointly reach the unequivocal conclusion that the tokenization of businesses and the involvement of the blockchain and cryptocurrencies into business models is the way forward.
Tokenization and ICOs
The model that tokenization via Initial Coin Offerings (ICOs) present is fairly simple, though it may seem complex and unrealistic at first. An initial coin offering is essentially an investment on the basis of which cryptographic coins are generated on the blockchain, which can then be sold on the market in terms of currency exchange for fiat currency, or is used for other business transactions across the board of businesses and companies that accept a certain cryptographic token as a valid mode of payment.
An ICO is an investment that allows owners of a cryptocurrency to ‘mine’ that cryptocurrency on the blockchain and create tokens of that currency, similar to how the central bank produces fiat currency, and then distribute tokens to investors in return for their investment, which they can then use as utility tokens or security tokens. While utility tokens can be used as a currency to buy certain goods and services (for example, if Bitcoin were to be used to buy a product on Amazon, it would have been used as a utility token), security tokens are simply an investment into an asset backed by the capital of the company raising the ICO.
What tokenization essentially does is that it provides a platform for businesses to refrain from bank loans and other forms of investment ventures and move towards offering cryptographic coins in exchange for an investment into the company, which essentially then act as a proxy for stocks within a company. As the company profits, it accumulates more capital and demand for its cryptographic coin (share) increases, increasing the value of the tokens that those who invested in the ICO received as a ‘token’ for their investment.
One of the greatest examples of industries that are increasingly being defined in financial terms by cryptographic tokens is the E-Sports industry, which has gained credence right about the same time as the ICO and Token industry. Since e-sports is a business that is prevalent mostly amongst millennials and targets a market of technology ‘natives’, that is, people born with most of the basic technological provisions that we see today, it is fairly simple for an industry such as e-sports to shift to a tokenized economy that generating funds and investments through initial coin offerings and provides shares in the company in the form of cryptographic tokens.
The e-sports industry, while relatively docile and infantile at the moment, is very relevant to the discussion here because it represents an industry that is defined at the core by technological advancements and the embrace of technology as a replacement for activities and phenomena that previously were not influenced by technology or digitalized. Regardless of one’s opinions towards the e-sports industry, one cannot deny that the industry is rapidly expanding and becoming increasingly relevant, and if the industry is actively embracing tokenization as a form of investment generation, then it goes to show that many new industries defined by technological progress will also move to undertake similar measures.
Similarly, many environmental business projects and models focusing on ecology are also placing a premium on generating funds through ICOs and tokenization, primarily because they also cater to a market of investors that believe heavily in the power of technology and are utopian in their firm assertion that technology is a solution to many of the world’s problems.
What is perhaps more relevant is that many other industries are also increasingly considering the possibility of tokenizing their financial systems, primarily because it presents a unique mechanism that helps them eliminate a variety of problems that accompany engaging in conventional modes of financial relations. These companies are primarily risk-taking companies that can set defining trends in the financial world, and it is very important for new, innovative, or experienced businesses to seriously consider tokenization if they wish to remain relevant in the evolving financial world of today and wish to present a plausible avenue for investment in the future.
ICOBooster (http://icobooster.io) has used the extensive experience and nuanced understandings of team to develop a unique mechanism through which aspiring business can use tokenization as a unique and effective way to generate capital. They are driven by a desire to eliminate the reliance of budding business on the unnecessary and often ineffective provision of founds by credit institutions, provisions that often have significantly harmful conditions attached ICOBooster provides ICO Development, ICO Marketing, Smart Contract Development, White Papers, and Wallet Services, ensuring that clients receive the full ICO package when they trust the Company with generating funds to realize their business aspirations.
By providing businesses with a comprehensive model on which to create ICO’s, mine cryptographic coins on the blockchain, and provide investors with tokens in return for their investments, ICOBooster presents a marked alternative to conventional forms of capital procurement. The extensive experience of the team in devising strategies for successful ICO offerings is only bolstered by the highly skilled group of cofounders that our organization boasts. Finally, it continues to evolve and incorporate new and innovative practices to facilitate the deliverance of successful ICOs, indicating its extreme dedication to providing businesses with alternatively effective measures to generate funds.
- Giacomo Arcaro (Co-Founder): Giacomo has now been involved in the world of cryptocurrencies and ICOs for quite some time, establishing himself as a veteran of the industry and a pioneer of its processes. Currently also working as an advisor for ICO Vision and LCCX as well as a Black Marketing Guru, Giacomo has extensive experience in understanding the specific requirements of a business regarding the models through which it can generate capital that allows it to thrive in competitive environments.
- Davide Baldi (Co-Founder): Serial entrepreneur, expert in the creation of commercial networks, owner of companies in various sectors, including management consulting, projects in the blockchain field, real estate operations. He is specialized in providing strategies to companies to help them compete in this period of crisis, from 2003 to today he has been involved in projects aimed at the growth of Italian and foreign companies, with a look at the internationalization of companies. Davide supports and invests in Smart Contract systems within the Blockchain and the Cryptocurrencies representing the new challenge on the market, the beginning of a new era, and we want to be a first level player on the international scene.
- Davide Zucchetti (Co-Founder): Davide is a knowledge manager with over 30 years of experience in training and business consulting. He founded the company Hiskill, making it a pillar of corporate management consulting in the Italian scene. He is a public speaker and has provided and still provides services to increase the level of competence and professionalism in companies. he is co-founder of ICOBooster and brings with him the necessary experience to apply to the Crypto world for companies that want to finance their blockchain-based projects by an Initial Coin offer.
Why Tokenization over Conventional Credit Institutions?
There are a variety of benefits to the tokenization of an industry’s financial system that provides companies with innovative new opportunities, as well as distinct and effective solutions for problems that they have previously faced.
Before a brief overview of the benefits of tokenization, it is important to understand that tokenization brings with it an entire revolutionary model of investment and capital generation that seeks to revolutionize how the entire world views investments. Given the rapid growth of the industry, it is quite clear that tokenization will soon become an irresistible force that will sweep the world of finance. Tokenization provides a decentralized and unregulated system for the generation of funds that has been unprecedented, prompting with a wave of new ways through which the financial world can delve into a model of decentralized and autonomous control.
Firstly, using ICOs allows companies to avoid having to go to banks for funding, which essentially means that companies can avoid the hassle of having phenomenal credit ratings or having to face the problem of exorbitant interest rates and unnecessary and inconvenient bank policies and regulations.
Secondly, the blockchain itself is premised on the idea of a decentralized form of financial transactions which essentially means that there will be little regulation on the operations of businesses for the foreseeable future. This provides a cover for businesses that are still in their rudimentary stages and cannot afford the problems associated with state-based financial regulations and interventions, allowing businesses to grow and expand without major blockades or hurdles.
Thirdly, the block chain provides investors with a more safe and satisfactory mode of investment, essentially because it is very hard to engage in any financial crime or fraudulent behavior on the block chain. Plus, by providing investors with the ability to have total control over their investment at all times, that is, by providing them with the ability to monitor investments in sell or buy instantaneously, tokenized ICOs are providing investors with significant incentives to invest in businesses that they may still be hesitant about since they can cash out at any time.
Finally, the financial world is evolving at the behest of technological innovation and the breakthrough in innovation, at least in the financial sector, has been the creation of cryptocurrencies through the block chain. While cryptocurrencies are currently a long way from being a mainstream mechanism of everyday financial relations, they are increasingly seeping into businesses in the form of ICOs. Some analysts predict that the future of all investments will be ICOs and that ICOs have raised more than 3 billion dollars within a measly two years of fame. This means that businesses must embrace technological advancements if they are to remain relevant.
With the advance of various decentralized financial and economic ecosystems, businesses are increasingly considering the possibility of adopting tokenization as the primary vehicle for the generation of investments. The very fact that the ICO industry is growing monumentally and at an accelerated rate means that investors and businesses alike see serious benefit and positivity in the venture, and therefore deem adoption necessary.
ICOBooster provides various services for businesses and organizations looking to revolutionize their financial models and ecosystems and integrate the model of tokenization through providing cryptographic coins by ICOs and have extensive experience working to completely overhaul the rudimentary models of various institutions. Keeping in mind the breadth of benefits that tokenization provides and the future trajectories of the investment generation model, any aspiring business must seriously consider using tokenization.