2019-3-27 16:30 |
Montex Market is a unique crypto-exchange where users can purchase stocks in startups with virtual currencies [ETH or exchange’s native token MON]. Businesses that decide to tokenize their stocks will win from access to global crypto investors, looking for ways to diversify their portfolios.
For a long time, investors have viewed startups as a viable option to search ultra-high yield and diversify their portfolios, although it has been hard to connect to startup businesses due to various barriers. Through tokenization, Montex Market brings together investors from around the world and startups, while also guaranteeing high security and protection with the native wallet and strong encryption methods.
What is tokenization?
Today, it’s possible to digitize almost everything around us. Companies can tokenize their stocks which means to process to digitize them by placing on the blockchain.
In this way, they win from all those perks and blockchains bring to the table. First, fewer middlemen standing between transacting parties. Second, fewer fees since there are not that many middlemen charging them anymore. Third, faster execution periods since no notaries, lawyers, accountants need to be engaged with all data securely stored on the blockchain that can’t ba change. That’s the power of tokenization in action.
How Montex Market Enables Tokenization?
At Montex Market, users can review a curated list of startups and purchase ownership stocks with virtual currencies. Helping promote tokenization among companies, Montex opens up a suite of additional following advantages:
Easy cross-border transactions
Traditionally, learning about startups in foreign countries and investing in them has been extremely hard. With Montex, contributors aren’t limited by borders and their physical locations, which will help startups tap into global investing communities.
This is primarily enabled by using virtual currencies that work fast and present no risk of fraud. Wherever you are, you can invest in startups right now.
Shared opportunities through crowd investing
For a long time, only the rich could become investors into startups, while businesses weren’t willing to spend time and effort, looking for smaller contributors, and were always sticking with big venture funds. Montex will enable the tokenization to open up startup venture capitalism for broader public thanks to lowering buy limits and using globally-accepted virtual currencies.
Businesses won’t have to look for investors anymore since posting their offer on Montex will draw minor contributors who will share in opportunities to buy into those startups.
Higher liquidity for stocks in startups
As a rule, investors into startups need to wait for 6-7 years before they can liquidate their holdings, which is usually done upon an IPO or purchase by big corp. At Montex, digitization helps startups trade their stocks to trade freely which completely eliminates the need to wait for a long time before a contributor can part with a purchase.
Should the buyer want, they’ll be able to sell the stock right the next minute after the transaction.
Better insights into startups
Since buyers won’t have to hold stocks for lengthy periods of time, low-potential stocks will see sell-offs and winning startups will grow in prices and popularity. In this way, the free market ecosystem, self-sustaining across Montex Project and driven by tokenization, will arrange startups based on real indicators and hard facts, barring any chance of fraud, false information or market manipulation.
Additionally to these benefits from digitization, Montex Market will deliver tangible insights into startups presented at the exchange.
Montex will research startups for potential buyers
As we learned above, tokenization helps reduce the number of middlemen. Among those are analysts who research startups and try to identify the best fits for investors. The problem is that they aren’t that much motivated to deliver.
At Montex, the analysts will curate the list of startups in order to filter out any dubious-looking projects and promote the best options. Motivated to display only worthy opportunities, they will perform well. Meanwhile, users won’t have to go through extensive research into projects that might present-from the very start-signs of a future failure.
For all hand-picked startups, there’ll be displayed a set of latest financial statements, business plans, and short videos about the underlying concept.
Montex definitely will disrupt startups funding. Maybe not globally, but in East Asia. It’s clearly drilling into something big. People are fed up with only the “fat cat” investing in startups and yearn for their place the table.
Why investing in startups makes sense?
In one word, it’s all about diversification. An investor, holding various assets, such as cryptocurrencies, shares, bonds, commodities, would be still exposed to the risks that, in case of a crisis, all of these assets will go down in prices. However, startups are a completely different breed. They are extremely resilient and can actually post profits even during harsh economic crises.
Although investing in startups is highly risky, allocating a portion from an investor’s portfolio – for instance, 10%-can help obtain higher growth rates long term. If any picked startup reaches its full potential, the profit’s limit is the sky.
There’s no doubt that tokenization is only starting to gather steam. Companies like Montex, being at the lead of digitization curve, help find the innovative ways to bring out value and benefits for the wider public. Digitizing investing in startups by enabling to purchase their stocks with virtual currencies helps open up more liquidity and connect budding businesses with willing investors.
To learn more and ask any questions you might have, subscribe to the project’s Telegram group. Make sure that you register at this unique exchange and see how it works for yourself.
The post Tokenizing Startups: Montex market to be first in Crypto to do that appeared first on AMBCrypto.
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