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Will Tokenized Assets Become the Future of Investing?

Blockchain company CPI Tech has launched a new asset management solution that could change investments on a global scale, crossing economic, class, and national borders to revolutionize faltering financial markets.

In recent decades, crowdfunding has exploded in popularity in developed nations. With early roots in the subscription business model that has been used for various creative and entrepreneurial projects for centuries, it has evolved into a powerful force in modern culture.

A brief history of the crowd

Even in modern times, crowdfunding started in the arts, with various musicians and visual artists campaigning for fans to underwrite tours, albums, and filmmaking ventures.

Crowdfunding as we now know it is taking many paths. These range from deeply altruistic campaigns to raise money for lifechanging or even lifesaving medical procedures, to rackets that can barely be considered more than extortion.

Another turn crowdfunding has taken is into the world of the initial coin offering (ICO), security token offering (STO), and initial exchange offering (IEO). These blockchain-based capital ventures saw their peak in the ICO boom of 2017. Billions of dollars were raised in this manner for a variety of business propositions based on digital currency platforms.

After a rough 2018, this form of financing has evolved and refined itself into a sophisticated and viable means to secure financial backing. The problem is, it is still a system heavily biased toward those with existing assets.

Take, for example, the situation in Argentina. One of the most volatile economies in contemporary history, the Argentine peso 12-month inflation rate is over 54 percent. This has shoved the working class population into a major financial crisis.

How’s the housing?

One of the most painful repercussions has been within the housing market. With the peso in a nosedive, the cost of renting an apartment has gone the opposite direction, literally pricing individuals and families alike out of any form of housing.

In addition, because homes are valued in US dollars but mortgages are only available in pesos, financing a home is a risky proposition. With current inflation, a mortgage could end up costing four to five times the value of the home. If the financial situation worsens, that risk will skyrocket.

Situations like these are not restricted to Argentina. Financial instability is a global issue in developing nations and their wealthier counterparts.

A token solution

The CPI Tech solution was developed to solve problems like these worldwide. By tokenizing assets, the company seeks to enable a stronger, more flexible investment community.

Using the CPI solution, the average person in the United States or Argentina can invest an affordable-to-them sum of money in a portion of an asset, earn interest, and eventually sell at profit. This after participating as a stakeholder in an asset class that was previously unavailable to them.

CPI equalizes the playing field for everyone, regardless of income class. However, the company also offers much more robust services for investors to take advantage of.

The CPI Tech blockchain platform is secure, trusted, and extremely scalable. It is equally useful for B2B and STO needs.

In other words, companies and individuals can harness CPI Tech solutions to expand through tokenization initiatives. With CPI Tech, all the work is already completed. White label products are available for IT, promotion, marketing, and other software needs.

Benefits of the model

This is not just an ease of use sort of advantage. The costs of developing custom software to address these basic needs can be prohibitive to the point of being unattainable. Out of the box business solutions can be even more costly, and less likely to meet customer needs.

Additionally, computer glitches, maintenance, and usability issues can send companies to a screeching halt. Problems like these, of course, lead to major trust issues and a basic inability to meet customer needs.

Software companies that offer external solutions are optimized for conversion. As a blockchain platform, they are heavily scalable and capable of moving into the future alongside customer technology growth.

All the major pain points of a typical startup are addressed. Legal structures are in place in multiple countries and locales via strategic partnerships with various law firms and subsequent smart contracts. IT is solid, built on a secure and infinitely scalable blockchain platform. Marketing and promotional services are also available through external solutions.

Whether large companies, small entrepreneurial ventures, or tiny individual investors, the technological world has a niche for everyone. As the market continues to change with increasing progress, the need for opening doors to investors and business owners worldwide will continue driving external tech solutions for tokenization power.

Image by Erdenebayar Bayansan from Pixabay

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