Security Token
First of all, it is necessary to specify terms in order to be clear what I am talking about. I will not discuss coins (digital currency working on blockchain technology). I described below tokens which have recently appeared a lot and I am feeling that everyone has forgotten what their purpose.
In general, all varieties of coins, tokens and everything else were created with a single goal – the development of the ecosystem and infrastructure for using cryptocurrency in the real world.
Security tokens, in turn, give a unique opportunity to all participants of the system. The company is free to raise the necessary funds from anywhere in the world. On the other hand, anyone absolutely free can participate in the creation and development of the interesting project.
What do we get from it?1)The boundaries are blurring Imagine that you could participate in the creation of such company like Apple. Previously, there was not any technical possibility to did this. There was not even the Internet, so you just would not know that there are people who want to create something like this and that they need money for development. And even if you found out them and for example lived in another country, you would not be able to influence their company.
2)There are no restrictions in raising fundsAt the moment, funds raising for the development of the company is problematic and is limited by a large set of requirements, which, unfortunately, are often not related to the security of the contributors. It is an artificial barrier in the hands of those who have owned the modern financial world, in order to save their money and influence. Listing is very expensive and possible only for financial giants. Small companies do not enter the stock market.
What is an IPO, anyway?This is the way to get additional funding by diluting business shares. The main part of the shares usually remains with the founders, the rest is distributed to everyone, as the alleged share of the business, and in theory should generate some revenue, etc.
So, it means that young companies are cut off from big money, they have no chance to enter the IPO market and get the funds. All profits go to large organizations.
The collapse in stock markets
As for the collapse of stock markets, it is a separate issue. I will say only that the financial world is currently at a new stage of development. The economic model that has been in operation since 1944 has outlived its usefulness. The real economy can no longer sustain this financial bubble, which has grown over time. Therefore, it is possible for financial markets to collapse in the foreseeable future.
In that regard, there is a question. How crypto currency can become an alternative to the current stock market and how will be able to rise to this difficult challenge?