Initial coin offerings have become the standard of crypto fundraising for startups seeking capital to launch. A new blockchain platform, however, is aiming to offer startups an alternative to ICO fundraising by making it possible for new companies to issue marketable tokens that represent legal capital in their platform.
Stamps is a new platform that is intended to address the issues that plague both the traditional fundraising process and the newer, more problematic issues that the ICO environment suffers from. In traditional financial markets, financial institutions and banks are reluctant to issue loans, and the difficulty in finding cooperative investors can make it virtually impossible for disruptive and innovative new startups to launch.
The initial coin offering ecosystem has its own issues. While initial coin offerings do make it possible for investors to participate in the launch of promising startups regardless of geographic location or class segregation, the ICO market itself is under close scrutiny due to lack of regulation and the high number of ICOs that tokenize platforms simply for the sake of tokenization itself.
The Stamps platform aims to create an ecosystem in which business owners and issuers of tokens can find an ideal solution. Built on a foundation of decentralization and transparency, Stamps is intended to function as a method via which users can issue equity.
In order to fund the launch of the Stamps platform, Stamps itself is- ironically- scheduling an initial coin offering. In this article, we’ll take a look at the Stamps platform and find out what it entails, as well as breaking down the specifics of the Stamps ICO to help you determine whether it’s worth investing in.
What is Stamps?
Stamps makes it possible for businesses to issue “equity tokens” that represent a share in the company. Through the Stamps platform, businesses will be able to access a rapidly growing marketplace of enthusiasts, enhance brand awareness, and, most importantly, access funding from the open market.
Stamps operates as a convergence of the traditional market and the ICO market, and offers holders of issued equity tokens legal rights to the company. Some of the benefits offered by Stamps equity tokens include Bitcoin Dividend Payments, Voting Privileges, Merger/Acquisition Benefits, and more.
The primary benefits of the Stamps platform can be split between token holders and businesses. Businesses will be able to liquidate parts of their equity tokens on the open market, which provides them with the ability to fund business operations.
This process will also deliver to businesses an instant community of Stamps enthusiasts. Stamps equity tokens are inherently programmable, which makes it possible for businesses to shape them to their specific needs. One of the most important benefits of the Stamps platform for businesses, however, is that there is little to no risk.
Some business may be cautious about making equity in their business available due to market failure, but as Stamps equity tokens can be programmed to represent variable equity stakes dependent on predetermined market values, they can be created in a fashion that eliminates potential market failure risk.
Stamps equity token holders will be able to benefit from a legally backed ownership token that represents an equity share in the issuing business. In many cases, businesses may want to issue dividend payment to token holders in the form of Bitcoin, which will be proportionate to the amount of Stamps equity tokens in the wallet of the holder.
Stamps equity tokens also make it possible for token holders to participate in important business decisions. When an issuing business seeks guidance on an important decision, they are able to request that equity token holders participate in a vote, which is performed through a streamlined one-click interface.
The Stamps ICO
Stamps tokens are held in the Stamps wallet, which delivers concise and easy to understand portfolio data. Stamps tokens can be used for convertible debt, debt financing, Angel investors, crowd funding, equity financing, and venture capital investment.
The maximum coin supply of Stamps tokens will be limited to 300,000,00 STAMP, with a total of 210,000,000 STAMP available across both the pre-ICO and the Stamp ICO. During the crowd sale, STAMP tokens will be available at a rate of 1 ETH to 1,000 STAMP, with varying bonuses dependent on the stage of the pre-ICO or ICO. The public Stamps ICO will launch on February 5th 2018.
The Stamps Verdict
The Stamps ICO is a highly promising platform that appears to deliver a viable alternative to ICO investment. If you’re interested in helping to foster the development of a parallel funding system on the blockchain that doesn’t suffer from the same issues as initial coin offerings, Stamps is definitely worth investigating.