4 Reasons for Investors to Participate in Tokenomica’s ETO

November 08, 2019 STO

Given that our ETO is already in full swing, we figured it would not be amiss to provide our potential investors with a rationale as to why Tokenomica is worth investing in. Let’s take a look at the reasons to participate in Tokenomica ETO:

Market

Let’s start with the most important part — the market. Tokenomica operates on the EU fundraising market which is constantly growing no matter the obvious inefficiencies, including:

1) Lack of retail investment opportunities;
2) High fees for retail investors. A study carried out by Deloitte Luxembourg indicates that retail investors in the EU are being overcharged on entry fees for investment products. Entry fees for buying an equity fund could cost retail investors up to 8% of their initial investment, on top of annual ongoing charges by fund managers, with similarly stringent entry requirements across other EU nations;
3) General illiquidity of assets;
4) Intermediaries are involved at almost every step of the process.

But at the same time, we can’t ignore the obvious benefits:

1) The market is constantly growing. €225 BLN — the total market size of private placement, private equity  and equity crowdfunding markets combined in 2019 and constant growth is projected for 2020-2023;
2) Single legal environment. Over half a billion people living in the EU in 2019 and 28 countries existing in a single legal environment;
3) A constant need for businesses to attract funding;
4) A growing need for retail investment opportunities.

Considering, both drawbacks and benefits indicated above, Tokenomica aims to operate on three areas of the EU fundraising market: private placement market, private equity market and crowdinvesting market.

By the end of 2020, we aim to bring our revenue to the sum of €5 528 421 and proceed to €14 449 038 in 2021. Now, in 2019, we have already launched the product and started acquiring corporate clients to make our plans real.

Tokenomica's financial model 2019 — 2024

Future partnerships and upcoming features

By purchasing Tokenomica’s smart equities, you make a promising investment: the current pre-money valuation of the company is €23 mln, and by the beginning of the second round it is expected to rise to €54 mln. There are two reasons for this expected increase.

The first reason is the future partnerships of Tokenomica. Right now, we are already onboarding 5 corporate clients that will be announced during the course of the PreSale round and in Q1 2020. One of our future partnerships will be the tokenization of Eurobonds for one of the major bond issuers in Europe. In 2020, tokenized bonds worth $10 million will be offered on Tokenomica.

The second reason is the features soon to be implemented on the platform. Within the following year, we are planning to launch a secondary trading facility for smart securities, OTC Trading, fiat integration, and add new post-campaign management features for companies. By the time the main round of Tokennomica’s ETO begins, the platform will be significantly improved.

Institutional investors are paying attention

Surely, institutional investors have been recently showing a special interest in security token issuance platforms — after all, it is they who should be paying the most attention. High investor interest in issuance platforms allows them to conduct successful fundraising campaigns: Polymath raising $58.7 million using a simple agreement for future tokens in January 2018 is perhaps the best example of that.

That said, witnessing the interest from institutional investors, issuance platforms themselves start perceiving institutional investors as their target audience, leaving retail investors behind. Take, for instance, the last year’s Neufund’s STO with its minimum investment amount of €100,000 — smaller investors were cut out of the loop.

We stand out from our competitors

If you take a closer look at our competitors, you will notice that there’s no other solution that provides simultaneous issuance and marketplace for tokenized assets along with an integrated DEX — we are one of a kind in this market. As soon as Tokenomica’s secondary trading facility is launched, we will take an even more advantageous position.

That said, technology is not the only area where we stand out: we also have successfully contracted insurance policy in April 2019, which makes Tokenomica’s exchange the first insured DEX on the market. This fact makes us proud.  

We don’t turn our backs on retail investors
One more thing that makes us different from our competitors is that we don’t want to limit our investor audience only to institutional investors. Retail investors have been following the project since day one — rather than letting larger-scale investors muscle them out, we would like to see them grow together with us. At the end of the day, one of the main ideas behind Tokenomica is to provide retail investors with an opportunity to invest in promising companies in the early stages — and that’s exactly the type of company we are.

And one extra reason — people

Tokenomica was built for retail investors by retail investors. With our extensive experience in both traditional and crypto markets, we wanted to build a product that we would like to use ourselves, a product that would make a difference.

To turn our dreams into reality, our core team left the comfort of working in Deloitte and started working tirelessly on the development of Tokenomica. Now, we need to take the next step in the development of the platform and add new features. Most importantly, we would like to invite you to become a part of Tokenomica!

The pre-sale round of Tokenomica’s ETO will last until the 15th of December. Don't miss out on the opportunity to invest now and join the securities market revolution!