Trust Token Collects $20 million with the support of Andreessen Horowitz
In an ICO campaign, the Trust Token platform managed to acquire a fund of $20 million in its recent token sale. The major contributor to this funding is the venture capital of Andreessen Horowitz, a nine-year-old private company headquartered in Menlo Park.
Other investment firms that have supported this funding include the BlockTower Capital and the Danhua Capital. Reportedly, the funding will be utilized to serve the rising needs of its platform, like the product related aspects, legal considerations, the infrastructure enhancements and additions. Also, the platform would be working in close alliance with its partners to harness their expertise for expansion in the industry and making their products globally accessible.
Token sales are being used by the companies to raise early seed capital in the financial market of cryptocurrencies. ICOs are the equities in the world of cryptocurrencies and tokens are sold at the price of a financial service. The method deploys blockchain-based tokens as a medium to sell those services. The method of operation is the same, shares are held till the worth of contributing companies’ rises to a substantial level and then the shares are sold at highest prices.
The blockchain has become a perfect fit for the financial industry because tracking the owners of the tokens is a transparent process. The two main priorities of the investors, i.e. the market liquidity and the integrity of funds are easily accomplished and this is why the trading of tokens is cost-efficient. The high fluctuation in the price of cryptocurrencies needed some stability and Trust Token has made its mark by releasing one such token known as the “stable coin” or True USD. Its value is one for one dollar.
The ICO sales by Trust Token are different because the tokens are now backed up by physical assets like gold and land property. The Trust Token platform aims to bring the investors and asset owners closer than before in order to bring better opportunities for investors. As the asset-backed tokens hold true value, their use will enable a regulated and secure trade of tokens. Before their launch, the tokens without assets held a high risk of capital loss as there were no regulation and security deposits against the tokens. In spite of the initial speculation, the investors are becoming increasingly aware of the benefits of a token and they will definitely revolutionize the venture capital industry.
To date, a16z has raised about $7.1B, across seven funds, including the $650M Bio funds. It aims to connect all the stakeholders in the technology market on a single platform and use this network to generate profits for the companies. Trust Token has been undoubtedly one of its smartest developments and the most positive outcome is the growing attention of the newbies towards it.