Blockchain technology enables three key features that make the new generation online businesses more attractive to investors compared to traditional internet-based services:
Instant liquidity of investment. Tokens minted during ICO are not subject to government over-regulation, and can be traded on exchanges instantly.
Aligned incentives. Fixed emission of the underlying cryptocurrency, combined with business’s desire to grow the number of active users steadily increases demand over time, which in turn increases the token’s price. This benefits both the founders and the project’s investors equally, ensuring there is no imbalance in this partnership. The more successful the business is, the higher demand, the higher the token’s price.
Transparency. Since all financial transactions are on a public blockchain, investors can see all key metrics updated in real time, unlike each quarter for stock exchange listed traditional corporations. This allows investors to make educated decisions based on facts about buying or selling the business’s token, eliminating speculation and letting the free market agree on a fair price. This is in contrast to most existing projects that are highly over speculated, and where investors are driven by rumours and act on “insider” information that they are unable to verify.
Rados harnesses these new developments and provides unprecedented and much needed transparency to investors, powered by the Ethereum blockchain.