“Raise your voice to be successful; then create an ICO with your powerful influence”
An ICO is a new way to raise money for your company shares and also can improve the value of your own token. Pulsehyip is an expert on creating ICO Website. Our top-rated end to end service will surely reach the exposure for your business plan and creates a successful ICO platform for your business. Check out here to know more about ICO Token system.
On the basis, ICO Token had fallen into 3 categories, they are Equity Token, Security Token, Utility Token. But on recent times Equity Token voice get raised than compared to others. Let we discuss, why Equity token is the most preferable option for token offering development.
Know about Equity Token:
Equity token is the process of investing in a token and getting a part of shares from the company. The percentage of token they invest will be equal to the value of the investing company shares. Shareholders can grab their ownership for their investment.
Equity Token has an essential power to access the company shares it represents the ownership of the company. It gives holders the same rights as shareholders of a company listed on the stock exchange; holders own their given percentage of the total enterprise. This equity token issues voting rights through the blockchain technology. Though EOT is important than any other, they allow any type of company assets in order to raise the funds.
Equity Token Offerings (ETOs)
Equity token offering has a method which has to record the ownership; the traditional method has the record of paper ledger and bonding but in ETO will be the list of blockchain technology. Though it meant to be the most secure process. For a financial method, ETO has to dilute the shares and raise capital in many rounds, for those it has two stages one is Private Locked up Stage another one is Public Liquidity Stage.
Equity tokens offer for Dilute and Anti-Dilution token, they are explained below;
Dilute Token: Dilution tends to reduce the ownership percentage from the company share of stock.
Example for Dilute token, If the company issues 50 shares to 50 individual shareholders. Now each shareholder owns 1% ownership from the company. In this stage, the company offers for secondary offering another 50 shares for 50 individuals but now it owns .5% of shares. In this stage, a smaller ownership percentage also decreased for each investor.
Anti-Dilution: It protects investors from the dilution of an equity position. In these situations, the percentage of stack value get decreased when the total number of shares increase. Also, share value can get increased when new shares being issued due to the round of equity. Dilution is a concern for preferred shareholders if the stock issue laterally when the price lower than their current shares would dilute their total ownership.
Mostly preferable of Dilution process will be helpful to gain more profitable ROI
Advantages of Issuing Equity Tokens:
The popularity of ETO’s getting huge because of these ventures,
Proven - It is fully proven and secured for the transaction and investment
Cost effective - Utility of service present at the affordable cost
Keep Control - It is possible to issue token as non-voting shares, so you don’t give out control for your company. But you can allow them to invest safely.
Retain Value - Your token will retain value as much as your company profits.
Feel Secure with Regulations - According to through the regulation rules you can feel secure on investment with the usage of blockchain technology.
That’s why Pulsehyip is here to offer the best token services for your business. We are experts in this field also developed many projects in the concept of ICO; now we placed our advanced creation with this Equity token offering. Utilize our customized services and get more profits with this tokenized culture.