2. Agenda
• What is Crowdfunding?
• Blockchain & Tokenization
• ICO
• Risks & Opportunities
• Use case – Asset Token
3. What is
Crowdfunding?
• Crowdfunding is the practice of
funding a project or venture by raising
many small amounts of money from a
large number of people, typically via
the Internet.
• Crowdfunding is a form of
crowdsourcing and of alternative
finance.
8. What is Crowdfunding?
The Future
•Innovative platforms/network, blockchain and cryptocurrencies
•Blockchain technology will get more application, such as equity
registration, risk control, and credit record, along with the
development of the equity-based crowdfunding, to meet the
requirements of high efficiency, low cost, reliable.
9. Blockchain &
Tokenization
• Peer 2 Peer
• Trusted between individuals
• Value transfer
• No 3rd party entity needed
• Assets (money, goods, property, votes)
• Altcoins are separate currencies with their own
separate blockchain.
• Tokens operate on top of a blockchain that
facilitates the creation of decentralized
applications.
10. Blockchain & Tokenization
• Blockchain technology is perfectly capable of
managing value exchange under contract.
• The feature that will come handy when it
comes to managing rewards based and
equity-based crowdfunding campaigns.
• The whole process of assigning relevant
rewards and equity against their contributions
can be automated, using blockchain based
smart contracts for crowdfunding.
• By programming a set of pre-defined
crowdfunding conditions on smart contracts,
the system can be automated to execute the
smart contract to issue certain rewards or
proof of ownership of a certain percentage of
equity based on the amount contributed
towards the campaign.
11. Blockchain &
Tokenization
• Like a crowdfunding campaign, new blockchain-based
tokens may be launched to the public in a similar format.
• This method can provide up-front capital for the
development of a platform, protocol, service or
technology, while distributing a token in return.
• The token, often tradable or spendable, is then used to
build a dedicated supporter/user base through game
theory-like incentive structures.
• The value of a given token is, in many cases, largely
dictated by the market.
• Firms such as Smith & Crown and ICOrating take the place
of traditional ratings agencies (Moody’s and S&P) in
assessing soundness of investment opportunity.
12. ICO
• Crowdsales are the crowdfunding campaigns in
the cryptocurrency world, where the digital
currency platform sells the pre-mined
crypto-tokens for the platform under
development in exchange for either bitcoin,
ethereum or some other established digital
currency.
• The funds raised are then used for further
development of the platform.
• The crypto tokens bought by the participants of
the crowdsale is equivalent to both rewards and
equity (depending upon the model followed by
the platform).
• Blockchain technology and digital currencies have
proven to be capable of being retrofitted to meet
the needs of any industry, including the
time-tested ones.
• Crowdfunding is one such segment, into which the
technology is capable of blending in, completely.
27. Asset Token –
Reward Points
• The world of commercial banking is
extremely competitive, and rewards points
programs have become a widespread
methodology for attracting and retaining
customers.
• Indeed, there are more than 2.6 billion
loyalty programs in the U.S., used by banks
and credit card companies, but also airlines,
retailers, restaurants, and many, many other
business sectors
• And consumers appear to love these
programs.
28. Asset Token -
Problem
• The rewards points industry is
sizeable, but also wrought with
various challenges, flaws, and issues.
• Loyalty and rewards programs are not
realizing full potential, due to account
inactivity; low redemption rates; time
delays; high transaction and system
management and customer
acquisition costs; and low client
retention.
29. Asset Token-
Solution
• Asset Token is the world’s first transferable
rewards points ERC20-compliant token on the
Ethereum Network designed to enable financial
institutions to quickly, easily and securely manage
loyalty programs.
• Asset Token provides all participating parties with
more control over how they accumulate, store and
use a rewards point program built on blockchain
technology. And ultimately, this will provide both
parties with more freedom.
• Financial institutions, consumers, merchants, and
others, can benefit from transparency,
transferability, and security that only blockchain
technology offers.