Blockchain technology has, most importantly, granted us decentralization and transparency. Many new ICO-based projects want to connect that technology with already-known ideas in order to improve them. In this TokenTops ICO review, we will take a look at a project that wants to enhance the equity market.
Chainium is essentially a blockchain for the stock and share market. They want to enable all businesses and investors to take part and issue or buy shares. The blockchain helps to provide a distributed database solution that replaces the already known and rather complex and inefficient manual processes used in the market today.
Problem of IPO
Chainium noticed that the traditional way of raising funds could be rather troublesome, especially for smaller companies. It is very hard from the logistic point of view, with months of planning and a group of specialists taking care of everything from the banks to laws and regulations. The process itself can take an enormous part of the company funds, and it’s not certain if, after the share selling, the money will be regained.
First of all, it becomes much easier for any company or business to issue their own shares in order to raise the needed capital. They can sell them directly to investors without any need for banks or intermediaries. There is also no need for the business to be listed anywhere. This may, however, sound like an easy way to exploit, but on the other hand, it makes it much easier to execute.
The investor can buy the shares directly from the company, and his own research needs to act as protection against possible scams. Thanks to the variety of possibilities available to companies, the choice will be much wider than in the usual stock market. The decentralization of the whole operation will greatly influence the prices as there are no added broker fees.
The connection of the blockchain to Chainium platform allows for an establishment of a direct connection between the business and the investor. Such direct connection cuts off any unnecessary middleman, other companies, or brokers which would impose their fees on the share price.
What is probably the biggest feature and advantage of the platform is that they want to allow users and businesses to use it free of charge. That means there are no fees taken from the shares sold. However, they want to offer additional and premium services. The main ideas for such would be Premium Investor Subscriptions, Business Owner Value Added Services, and access fees for APIs and data feeds for third-party external services and platforms.
It’s worth noting that Chainium wants to be able to meet all of the necessary regulations so that its platform can work fully and legally. They have started acquiring a European Small Banking license.
The token acts as the essential tool needed to issue shares within the platform. Business owners will have to acquire a certain amount of CHX and lock them up in Smart Contracts to launch the equity. This protects the whole platform from being flooded with scams and spam offers. The token can also be used to buy additional and special services.
The token is standard ERC-20, which means it can be stored, just like most of other ICO tokens, in the Ethereum wallet of your choice.
The first coin offering starts on the 27th of November and will last until the 18th of December, and it will act as the pre-sale, while the main phase will take place from the 25th of December to the 12th of January, 2018.
Chainium team is relatively small. However, they are very experienced, and there are people responsible for all of the important aspects of the project. They have previously implemented technology solutions for companies such as Walmart, Allianz, and HSBC. The project’s website offers a detailed description of the experience and skills of each member. There are also links to their social media and LinkedIn profiles, making them traceable and transparent.
The platform generally seems to be prepared quite well. They even have an already working prototype. There is no other blockchain project of such sort. However, they are focused on helping companies raise funds as well, however with a focus on the ICO and token offering aspects. It may be interesting to see which fundraising method the companies and investors will choose. Chainium team will most likely deliver a fully working platform, and it’s in their hands if they will be able to encourage businesses and investors to use it. The offering of free services will most likely accomplish this.