Chainium - Equity Market Reinvented
What is Chainium? it’s an equity blockchain, it's going to make buying and selling shares and companies real equity, more achievable for small businesses and for the average investors like you and me. This is going to be a disruptive ICO I believe the reason why it's very difficult for people to buy stocks and shares if they're not an accredited investor they don't use a middleman so this could be something that is very disruptive to the stock market industry similar to how ICOs have been disruptive to IPOs. Referring to the Chainium white paper, there is a competitive analysis in their whitepaper and there's quite a lot of overlapping competition that you could consider maybe competition in certain areas but not really doing exactly the same thing as what Chainium is. First one is of course the traditional crowdfunding sites such as Kickstarter, Indiegogo and obviously small businesses use those to raise capital for a further expansion etcetera. There’s also equity crowdfunding, some of those are CircleUp, Seedrs and Crowdcube none of them that I'm overly familiar with but basically, they are a centralized mechanism for selling equity or shares in unlisted companies. There is execution only listed trading platforms so you can actually sell your equity on platforms exchanges like the share center and RobinHood. When you're not actually publicly listed on a stock exchange yet and then you've also got private investment brokers as well and they offer trading platforms for unlisted companies too. So, those are the old-world approaches and of course we have some blockchain projects but and I don’t think any of them are in direct competition for all of their services. There are a few blocking projects that have similarities to Chainium, in terms of what they are trying to do. First one is asset tokenization, you’re probably familiar with LAToken, KICKICO, they're basically allow any sort of physical property like artworks, commodities to be treated on their platform. There's also other blockchain projects for equities clearing and settlement some of them are Setl.io, T0 and Chain. They just basically reduce the cost in equities clearing and settlement. Then there are prediction markets a stocks, Gnosis and Augur are listed as the examples in the whitepaper. It's sort of like gambling where you invest on a share price over a fixed time period to see whether it goes up or down. There's also crypto funds so they're manage funds, blackmoon crypto, blockchain capital and there’s many others. They offer a stake in a fund and the funds are managed for you and then you get some returns. However, Chainium is not an investment fund, it's not a vehicle, it’s not competing with any of those projects. So that's not what Chainium trying to do, essentially what Chainium are doing is offering equity in small businesses to any investors much like what IPOs or ICOs allowing anybody to invest in these small businesses and in turn allowing small businesses access to capital that they wouldn’t otherwise be able to achieve. So, they'll be able to get capital in exchange for equity and raise funds in that manner.
When we talk about the problems, there are limited options for raising capital especially for small private businesses, they don't have the option. They do crowdfunding, it's going to be expensive, typical crowdfunding sites take at least four percent of the money and it's confusing as well. It's difficult and it's not the real ideal solution especially for small businesses that are looking to raise capital so if you want to trade your equity in your company for capital then you could always do an IPO but then that’s going to get even more expensive. There's a lot of middlemen involved, they’re going to take their cut and again it's a long-drawn-out process. So, there is very limited options for what you can do, you could also go and find a venture capitalist I suppose and get them to invest in your business but then again who knows venture capitalists, becoming more common certainly with in the crypto space but in general if you are just a small business you probably don't know any venture capitalists and you’re probably not going to meet any. The next problem is as I just mentioned middlemen almost are always necessary to do anything when it comes to raising capital for small private businesses. You always have to use a middleman, you have to use them to set up an IPO or you'd have to use them to probably get in touch with venture capitalists and people that are what they're willing to invest their money and again they will always take a cut. Raising capital for small businesses is confusing, complex slow and expensive. The process is long, drawn-out, it's complex most people can't understand, they get confused and ultimately, it's expensive. In terms of investors, investors also have limited options for investing in stocks and shares. Unless you're an accredited investor you can’t really just buy stocks and shares in companies, you've got to go middle man and this costs you money. Using stockbrokers and that's why they've got this sort of wall setup, they earn money you can’t get in as a normal person. It’s what ICOs have been disrupting now for few months and is the IPO only accessible to accredited investors if you won't want to invest in IPO, you've got to go through your stockbroker and they make the deals for you. ICOs have allowed anybody to get involved buying into the technology behind small businesses, blockchain technology, tokenize technology and you don't get equity in that case but you do get some of the tokens that are used on the ecosystem so there is some value there although you don’t get any ownership rights in the company. However, this is slightly different with Chainium, they’re obviously going to have this platform to allow you to buy in to small companies and without you actually get real equity and brick and mortar businesses here. Slightly different but the concept is the same it is about allowing people to participate. Small investors at the moment have very limited options.
Website: https://www.chainium.io
Twitter: https://twitter.com/ChainiumIO
Facebook: https://www.facebook.com/chainium.io/
Telegram: https://telegram.me/chainium
Whitepaper: https://www.chainium.io/uploads/files/Chainium-Business-Whitepaper-v3.pdf
Bitcointalk ANN: https://bitcointalk.to/index.php?topic=2431631
Authored by: donniedarko
Bitcointalk url: https://bitcointalk.org/index.php?action=profile;u=1720051