Investors will be able to buy and sell equity tokens through a technology built on top of Ethereum blockchain. BnkToTheFuture will issue a token next year to let people let people pay for deal analysis, due diligence and investor relations. It hopes to use the experience it has so far in helping 45,000 accredited investors from around the world invest more than $200 million.
It has helped many investors to invest in equity in more than 100 companies and projects such as Ethereum and storj. However, selling the stakes can be difficult, a reason it is launching the secondary market to allow such trading. It hopes to attract as many companies as possible on its platform.
Chief Executive Officer Simon Dixon said in a phone interview,
“By year-end, we could have 50 percent of the major companies in the sector on our platform”.
The company, which is registered in Cayman Islands, plans to raise $33 million in an initial coin offering. Thus, it is now set for next year. It competes with the likes of Nasdaq Private Market although it focuses on blockchain and fintech companies.
In launching the platform, the company will join other companies. Since betting on helping investor’s access to cryptocurrency markets with a hope to make investments. These include CME, CBOE and others that run or hope to launch futures contracts and hedge funds.
If they are genuine and able to achieve their goals, they should make cryptocurrencies more attractive to institutional investors. Together, they could help solve volatility in cryptocurrencies and lessen the high risks that scare away institutional investors.
Majid Shah, the co-founder of CoinSchedule and a longtime user of BnkToTheFuture,
“Their investment opportunities are vetted quite extensively and it seems only very few get accepts judging from the amount of investments that pass through their platform,” said in an email. “I would say they provide a lower-return but lower-risk way of investing into the blockchain space. Whereas ICOs are more high return, high risk”.
The platform announcement comes at a time when there is lots of optimism in Blockchain. And also cryptocurrencies as a whole. $3.6 billion has been investing into ICOs this year alone and Bitcoin. Additionally, few altcoins are recording highs. Bitcoin just crossed the 10k mark this Tuesday.