The international equity market has gone through a tempestuous decade since the beginning of the recession. The world has experienced some economic growth in the past 5 years. Even then, there is a serious decrease in the number of IPOs. The market is performing well but at the same time, start-ups are not able to take any benefit of such growth. This is regardless of the fact that the public is investing highly in the equity markets.
Applications, such as Robinhood, have brought a significant change in the consumer market. This is majorly because of the increasing interest in cryptocurrencies. The major problem arising in the way of procuring funds is the existence of old-fashioned systems, like banks, private firms, and bureaucracy fees, which has made this procedure inconvenient, costly, and unclear. This is also because investors have become very cautious of lending institutions because of the international recession.
The international equity market is slowly reaching a dead end because of structural obstructions coming in the way. The equity market is moving towards decentralization nowadays. This is where they can make use of the Blockchain technology. There is a start-up, named Chainium that is constantly working to provide an easier way forbusiness entrepreneurs to raise funds.
It is a very difficult job to raise funds and invest. The equity market is facing the same situation that the media industry was facing at the time when freelancing websites, like Upwork and Elance, were introduced in the market. There are a lot of legal formalities that one has to go through for linking up small investors with developed organizations.
It is not possible for new companies to do p2p financing. That is why venture capitalists, banks, and private equity companies are filling the blank space in the equity market. But all these services come with a negative side. Business organizations have to go through a personal judgment of investors to procure funds.
Chainium is focusing on creating a process that can bring transparency in the trading process. This platform does not charge any fees as it makes use of the blockchain technology. Chainium is supported by CHX tokens, which connects business owners with investors.
Owners of business firms put forth the stipulations based on which they offer their equity to their investors. They also mention in the terms about how much they want to be involved with their investors. Chainium can manage an equity sale for private firms. This platform also ensures that such a sale is transparent, safe, and legitimate.
This platform enables interactions between the company and investors without the involvement of intermediaries. Investors can get all kinds of benefits through this platform that they used to get with traditional systems, such as voting rights, dividend, analytics, and financial reporting.
The Chianium platform was under development for a past few years. They are going to launch their Initial Coin Offering (ICO) in the early period of the year 2018. This ICO is going to highlight their solutions in front of those who are interested in purchasing its tokens. If you want to get more information about the Chainium platform, then read its whitepaper.