Investors will, even more, believe in the blockchain after the introduction of an organic fund-raising procedure
Financing is an important part of the business, both in the early stages and in the case of further expansion. Prior to the advent of blockchain technology, companies relied on loans or interventions from venture investors as well as business angels to obtain financing for the firm.
Such systems carried a certain element of loss of ownership, or, in other words, required from business owners and developers to give part of the control and the share of the company to others.
Revolution of the blockchain
The emergence of blockchain technology has transformed the system of business and the general ecosystem of fund-raising. The safe, transparent, unchanging and ubiquitous availability of blockchain technology has opened the way for a business to gain unlimited access to global crowding. Initially, this process was presented by the concept of the initial coin offering (ICO).
The ICO process involves the purchase of tokens, which are digital assets of the blockchain products. Then the coins get their value depending on the economic demand in the global cryptocurrency market. This value can be the result of speculation or real demand for a “parent” product.
Such a system has gained great popularity in recent years, has found application in various emerging projects and companies seeking to expand.
However, recently the concept of ICO has undergone a careful study. Undoubtedly, there have been cases of fraud from players who simply pulled money from unsuspecting victims; such players claim revolutionary products, but then evaporate along with the collected funds, leaving people with tokens that are almost worthless.
In addition, the inability of governments to regulate the ecosystem led to the emergence of various reactions, including the prohibition in countries such as China, and widespread taxation in the United States.
To protect businessmen and investors from such unclear blockchain, Blockhive is cooperating with the Agrello Identity Management Agency to develop a new fund-raising system – primary loan collection (ILP).
Unlike ICO, this system does not throw investors with incomprehensible tokens but allows them to earn interest from their contribution. After the first ILP from Blockhive, the tokenote.io site will serve as the ILP platform that companies will use to attract investment.
Elimination of doubts
ILP is carried out in the form of loans on a global scale, allowing you to invest through the blockchain platform Blockhive. This is a simple and comprehensive structure without taxes since deposits are placed in the form of debts, not revenues.
The ILP structure issues coins for access to a loan in the future (FLAT), which are a form of “access tokens”, so lenders can transfer their loan agreement to others.
Tokens will be issued to creditors who provide funds to the company, and each company using the ILP structure can give coins their brand name. Creditors can provide loans in crypto-currencies, including the Ethereum.
Compliance with legislation requirements
Thanks to Agrello ID, digital identification and signature guarantee compliance with the KYC procedure and rules for combating money laundering, which ensures that the system fulfills all legal requirements.
When using smart contracts for the airtime, lenders can receive up to 20% of the total annual revenue of the Blockhive platform. This represents a guaranteed investment that will be based on an organic growth in the value of the “parent” project and will not be affected by the invisible forces of the speculative market.