The company Globacap is a digital capital raising system. They’ve worked with officials in charge of developing regulations for improved automated processes to issue equity and securities for debts as coins/tokens stored on public blockchains. The new company is offering issuance for equity, the first of its kind – all done on public blockchain with powerful regulatory oversights, like those used to check the addresses of KYC/AML requirements.
Initial Coin Offerings have now given businesses larger areas of access to use capital. It’s also lead to investors receiving more access to liquidity as well. But, along with this important new innovation, there has been several allegations of suspected fraud, like that of Pincoin, who rose more than $660 million USD in revenue before disappearing out of nowhere.
The regulations being put into place are now put in place as important factors to end or at the very least reduce fraud while at the same time improving trust. However, the officials in charge of regulations have already issued many different responses to ICOs with some of them outlawing them while others propose more restrictions.
Instilling a new regulation to the market, gives investors at different institutions a new ability for participation, since most of them have restrictions governing investing in assets which are unregulated. Along with this, Globalcap provides institutional grade due diligence as well as financial information on new investments through the system.
The system also reduces the fees while enhancing efficiency through automation as well as legal standardization. The new platform will also give out each piece of equity and debt security as a coin released on the public blockchain. They are giving users a better way that is more cost-efficient way to handle their securities. Then along with that, they will be able to list that security across a multitude of different trading exchanges.
Releasing a new security on the public blockchain will also allow users the ability to instant settlement, this is a new important improvement on the effectiveness over previous or even the current state of security market places.
Globacap is taking a very streamlined approach to raising capital that is adopted by crowdfunding systems, but they are taking a larger approach – instead going a step further, by giving a superior level of due diligence that investors in institutions require. Along with that, the ability for coins to be put up on exchanges also gives investors greater access to more liquidity.
The companies that require crowdfunding from Globacap will choose from different set equity or debt templates that provide and standardize the requirements needed from a legal standpoint. These issues are needed to issue funds for example, but companies will also be able to grant permission to pages themselves, restricting certain pieces of information to various investors or groups of them.
Typically, investors will go through some automate procedures for KYC/AML checks while they are registering. The process can then be able to allocate their investments across a large area of real fiat as well as cryptocurrencies.
The platform handles cryptocurrency conversions: new businesses will get their base currency after going through the funding process that has been completed – along these lines there are coupons as well as individual dividends that can also be used and converted, thereby giving investors the ability to receive distributions in Ether.
During the event that investors lose their personal private key (meant to be kept private), the system is able to lock itself, burn then re-issue coins. This is an important regulatory concept that has regards to safeguarding assets.
A New Dawn For SMEs
The new platform is fully designed to help small and medium sized businesses/enterprises (SMEs), which makes up about 67% of all the private European private sector for employment as well as 67% of all value contributed, as it was recorded by the European Commission in 2016.
Any SMEs don’t usually have access to worldwide global investors audiences, who are in turn weighed down under the administrative burden of handling investor groups as well as regulation compliance after raising capital. The platform of Globacap gives enterprises the ability to hit global reach, at the same time they are simplifying the administration of post-issuance.
The new platform will also get rid of companies attempting to lie. Basically meaning, transparency that exists in traditional banking systems, will be equally visible within the virtual world as well. The important reason for this is that it improves protection for investors as well as companies alike. Globacap’s system is now scheduled to go live for businesses later this year in October of 2018.
Globacap Coin Sales Planned
Globacap is also issuing their own token, the coin will be known as GCAP – distributed via their own system. The distribution of the coins will take place in July of this year, when there is going to be legal shares of equity, represented by the company Globacap with full share dividend as well as voting rights. Each coin can be purchased for ETH at a range of 0.0004 for each token.
The new DSO or Digital Security Offering in July is speculated to raise 6,648 ETH for a 10.5% Shareholding, selling officially at a rate of 16.62 million GCAP of coins.
The coins will then be listed in a regulated trading exchange by the end of the year, 2018, with more exchanges being added throughout the next year of 2019.