What Makes AladiEx a Preferred Digital Platform for Fundraising New Businesses

aladiex (37)in #fundraising • 4 years ago

Blog_What Makes AladiEx a Preferred Digital Platform for Fundraising New Businesses.jpg

In a recent angel round discussion on the launching of AladiEx in Jakarta, Indonesia on March 10, 2020, most crypto experts agree that the future financial infrastructure is deemed to explore blockchain technology. This is geared to provide solutions to countless problems faced by the different industries.

For Daniel Schwartz, CEO of AladiEx, an emerging digital platform, he believes that the blockchain is gaining momentum as value transfer is held instantaneously with less dependence on third-party financial institutions as compared today.

Among ordinary consumers, startups, corporations, and banks, blockchain technology can be advantageous in optimizing international transfers. Eventually, this brings more efficient systems and reduced transaction fees for trading activities globally.

Future Tokenization on the Rise

As expected, industry experts anticipate that everything is bound to be tokenized in the coming years. With this, anything of value will be employed with blockchain. This means the ownership rights of valuable properties will be using the blockchain like bonds, stocks, currencies, and other assets. These assets include masterpieces or works of art, real estate, high value cars, and ships.

Why Use Blockchain Tech in Launching a Product?

During his talk, Mr. Schwartz asked, “Why should an investor purchase token-based shares instead of making an investment in traditional, old-fashioned shares on a stock exchange?”

He cited several reasons companies should raise capital through a digital platform using the blockchain like AladiEx. The CEO executive noted the entire financial infrastructure is set to move in this direction. Many startups will be better established to take advantage of AladiEx. This is where company share tokens can be used easily when adopted for exchange trading like BTC or ETH.

Hassle-free transfer of tokens from seller to buyer and instant settlement.
Trading on exchanges is quicker with less unwanted delays. This brings higher interest rates from investors and competitive prices. Among unlisted shares, liquidity is near to zero. Early investors may wait for many years waiting if they opt to sell their shares. For issued shares on the blockchain, especially with less trading restrictions, the early investors can sell any time they want. This can bring more attractive investment to the investors at higher prices.

Better access to global investors.
Many groups of investors are pre-registered and created in databases worldwide. These commercial databases are linked to each other and made available to be tapped by companies seeking investors. Many platforms like AladiEx are launched recently to enable investors to instantly invest into MSMEs that issue shares on the blockchain. These platforms collaborate with international investors and investor databases. They provide their clients better access to international investors. This is much better compared to the traditional technologies and systems. Using the blockchain ecosystem, all members can access advanced technology that enables everyone to interconnect, interact, and exchange relevant data about the investors and available opportunities.

Employing more efficient and highly advanced technology.
Startups that issue shares through the blockchain are embracing the new global trend which exploits the benefits of technology such as enhanced efficiency, reduced transaction costs, and wider market visibility. By itself, they use innovative and better technology to boost marketing efforts and branding initiatives of the raising capital and promoting a ‘technology premium,’ such as higher valuation brought by integrating better and highly efficient technology.

Token tokenization.
Blockchain tokens are usually used as a tool to provide ownership rights in a company share. In some instances, shares are too expensive for some investors, which lead to a reduced share price. Meanwhile, through the blockchain technology, tokens are tokenized and fragmented into mini elements to make it more affordable for many small investors.

Reduced transaction fees.
The upcoming trading exchanges for tokenized securities have published their fee structure and it appears this will be a key factor in lowering the fees on existing exchanges among listed company shares. This attracts investors and encourages valuations and prices upward.

Automated process.
A huge proportion of the processes related to issuance and trading with shares can be automated through blockchain technology and commonly used in smart contracts. For example, processes involving money laundering avoidance (AML), investor verification (KYC), and investor accreditation verification can be highly automated. By doing so, these processes eliminate expensive human elements, enhancing efficiency and minimizing overall costs.

24/7 trading on exchanges.
Blockchain-based trading exchanges can be accessed round the clock or about four times more compared to the current exchanges. This allows trading across different time zones and enhanced ability to trade and become more attractive to investors than the existing trading hours.

More reliable and secure than existing options.
The blockchain by itself can be a trusted tool as it uses shared, immutable and transparent ledgers. Trading history are made available to anyone, including the authorities. The potential risk of committing errors is reduced with increased level of identifying errors. Investors are enabled to trade through exchanges. Also, they can instantly do this without spending or at minimal cost when trading directly or peer-to-peer (P2P).

Automated compliance and linked with smart contracts of the tokenized securities.
Immediate trading within jurisdictions is possible to a much higher degree today compared in the past. Compliance can be evaluated and guaranteed through the token smart contract. In the conventional process, in preventing compliance issues, unlisted share trading is limited to specific digital tools and not allowed across platforms or P2P.

Minimized ongoing cost brought by instantly maintained cap tables.
These can be monitored using smart contracts when updating them and regularly scanning the blockchain for those unreported trading. Also, using the blockchain, the cap table is more accurate and updated than in the existing system.

What Sets AladiEx Different from Its Competitors

More than just an exchange

AladiEx provides a digital platform that lists tokens while helping startups and small and medium-sized companies raise capital through an effective launch pad to assist companies to build their capacity sustainably.

Secure your privacy and committed to doing more than that

Also, AladiEx guarantees your property with an insurance policy of up to $100 million.

Aside from providing storage

AladiEx has an asset management system that enables startups to INVEST — TRACK — SPEND.

Not just any ordinary trading service platform

AladiEx is a social network that enables you to interact, learn, and copy commands from the experts in the industry. For more details on how we can assist you, visit us at https://aladiex.io/