When companies launch their ICO, they issue crypto tokens in exchange for investment cash. The tokens are built on top of the blockchain platform, and their owners can trade them as they wish.
Sergey Vasin, Chief Investment Officer of Blackmoon points out, “Tokenized funds are more cost-efficient thanks to lower infrastructure and setup costs…This economy is transmitted to investors in the form of higher net return. For the cherry on top, fund tokens are also immediately tradable.”
This new economy gives rise to two major opportunities. First, the token-based investment process should be more transparent and auditable due to its blockchain roots. Secondly, this improved “open book” approach offers the potential to expand the market beyond cryptocurrencies and incorporate fiat currency into the portfolio.
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