Equity Token Offering is one of the most effective tools for traders and it could be more effective when designed keeping the business in mind. Equity tokens are a secure shape of investing within the nascent fashion like blockchain technology. It gives a chance to take advantage of the opportunity supplied by means of blockchain revolution in a barely specific manner than what traditional cryptocurrencies offer. ETO permits you to guess on generation and additionally diversify the chance. It’s type of a bridge between blockchain and already current and rich agencies.
Types of Equity Tokens
You can sanction to produce a lot of stock, however, release on the part of it to the investors and shareholders. The left unissued stocks can be utilized to sale later. Only when all unissued shares are sold is when the existing shareholders have diluted their shares. The amount of tokens shows the number of shares in the organization which is inscribed on a smart contract. As the company develops the stake held by the investor decreases, however, the stake holds more value.
Every token is equal to a percentage share on the company. The investor has the percentage of the company, as long as the token is his/her wallet. The anti-dilution premium is fixed as an added insurance, for the investor to remain in the organization without diluting their assets. This gives a chance to grab a future at present .Dilutable equity tokens are suggested instead of non-Dilutable tokens.
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