Asset backed tokens are becoming hot now. With more and more Hybrid DeFi use cases coming up, we are seeing Real Life Asset Backed by Tokens that can be bought and traded through Crypto. With this bridge built between real life assets with crypto , we are going to see tokenized real bonds giving interest or a tokenized share giving profit percentage or dividends. Finminity aspires to work in this Hybrid Finance (HyFi) space and can call ourselves HyFi — taking the best of CeFi and marrying that with DeFi and Decentralization.
What does Finminity do?
Finminity Tokenization Engine allows companies to do asset token mapping, onboarding the company on Blockchain, ERC 20 and 1404 standard Token Creation and Token Allocation to investors. In addition, through a DeFi aligned Investor Services module, Finminity provides Investor Resolution Management and Voting, Milestone based Escrow and Payments, Dividend Distribution and Investor money return on company failure. It is more like a Decentralized Investment Bank of the new world.
Finminity (FMT) Tokens and its utility
Finminity tokens, identified by FMT, is used within its associated Crowdfunding platform for the following use cases -
- Companies (who are raising funds against their own tokens) will use the FMT tokens as fees for
- Onboarding into Finminity Ecosystem
- Token creation
- Resolution creation (e.g. Voting, AGM Resolutions etc.)
- Dividend distribution
2. Investors will use FMT tokens to
- Get an early access to the offering at a discounted rate
- Vote in the resolutions, Pay Proxy Voters appointed by Investor Community to vote on resolution
- Take dividends
- Pay Transaction fees in the integrated buy-sell P2P token marketplace where they can trade these tokens
3. Custodians will use FMT tokens as fees for providing access to the Token Register — for cases, when verifiers want to know who are the beneficial token holders (just like we put a request to Registrar of Companies to know who are the current shareholders of a company)
4. 3rd Parties like Fund Houses will FMT tokens for creation of Portfolio of Tokens, just like a Mutual funds chooses a set of Stock to create a Fund we buy. Lenders can be verifying token certificates for loans also and verification charges could be paid in FMT
With a target of 10 companies coming into the platform for tokenization at the end of the first year and approximately 3500 investors onboarded, the appreciation potential of these utility tokens are high.
FMT Tokens in the long term? A safe bet for all seasons
Finminity’s business makes it a hybrid finance (HyFi) model for your FMT tokens to appreciate — It has a Crypto offering (through ERC-20 tokens) & Real capital market front end (with ECR-1404 tokens). At any point of time, one sector will be normally up and other down — for e.g. when people are worried about stock markets and economic environment they rely more on crypto and gold. When stock market is up & economic indicators are positive, they use crypto money to real world share buying.
We know that as investors we have to hold patience as both module/sector may not shine at same time. So its always a zero sum game till now.
But Finminity is the first platform with its HyFi FMT token to give you an option to hedge.
1) When Capital Market is good -more real-world companies come into our platform to get funding. The more they come, the more our platform is used, automatically our tokens are used in greater numbers and demand goes up. Even in a dull crypto market, as the capital markets becomes good, our FMT tokens will provide value and appreciate in its utility.
2) When the Capital Market is down - we normally see the Crypto market going up. When the Crypto market is up, the wave will automatically take our token up because the token holds value in the near future of the economy.
So, our HyFi FMT tokens provide a hedge so that it appreciates and hold value to our token holders in all seasons.
Token metrics
For the Utility Token Offering, there will be 100 million FMT DeFi tokens, out of which 30 million available for Sales. 8810 FMT token is priced at 1 ETH. The Hard Cap is 3000 ETH makes it a low cap keeping a demand for the tokens at all times. We believe that with out a thriving community and ecosystem through which we can onboard new projects and have more uses cases of our platform, is a must. As a result, we have set aside a good amount of tokens for Ecosystem, Foundation & Exchange Liquidity. In addition to keep the market cap optimum we have kept the right mix of private and public allocation of tokens in the sales. For more on the Tokenomics, Token Supply, Lock-Up Periods, and Token Distribution- please refer -> FMT Token Model
Conclusion
When investing in any cryptocurrency project, it is important to ask yourself why this project needs a token at all, and if it needs a token, why it needs its own token. Do you think Finminity needs its own token?
Finminity’s platform has the potential to completely change the way tokens are sold in a transparent, flexible and rewarding way in a new model of Decentralized investment bank for Starups and SME’s looking to raise $1–2Mn. If pulled off properly, Finminity could truly be the Investment Bank of DeFi investment platforms.
For more information about Finminity, please access our social media links-
LinkedIn — https://www.linkedin.com/company/finminity/
Medium — https://medium.com/@finminity
Instagram — https://www.instagram.com/finminity/
Twitter — https://twitter.com/finminity
YouTube — https://www.youtube.com/channel/UC4WACo9cQZ4VjZjBsskjlvg/
