Asset Tokens, Currency Tokens and the SharesChain Network
2018-03-13

SharesChain connects the encrypted economy in the virtual world to the shares of companies in the real world. It innovates technologically and legally, to facilitate a bridge between investors and companies. For a quick and general understanding of the terminology used in this article, you may refer to our short article titled, “The Difference Between Asset Tokens and Currency Tokens.”

SharesChain makes the connecting of Assets on the blockchain possible by developing a platform for an easier and trustworthy acquisition of over-the-counter shares. It utilizes two tokens to organize this system; its own SharesChain Token (SCTK) as a currency token while collaborating with a separate Asset Token that represents each company’s shares. Though these two are both referred to as “Tokens”, they serve two entirely different functions.

An Asset Token (also referred to as an Equity Token) certifies the ownership of assets of companies that have undergone Tokenizing. Tokenizing refers to the process in which equity tokens are issued by transferring shares of a company from the real world onto the block chain. This process happens aside from SharesChain, it is handled directly by the entrepreneur and their company.

These tokens will automatically transform to an investment agreement that conforms to the laws of the country where they are issued, to ensure the legitimacy of the investments. This is made possible through third-party local legal service providers and the engineers that develop the smart contracts to bring them up on the block chain. Finding these professionals can also be made easier through the SharesChain network.

This investment agreement, or smart contract, allows for these tokens to work in much the same way as a company share, or stock, does for a traditional company. Shares are created in a finite number act as the legal representations of ownership in a company. In most cases, investors who wish to purchase shares are required to go through a legal process of registration before purchase. Having done so, they ensure themselves a position in the company as a partial shareholder. By digitizing the assets rather than keeping them in the real world, entrepreneurs have a greater reach to find new investment; they also have increased fluidity and liquidity in those shares since the blockchain inherently provides convenience, security, and ease-of-use.

Investors have more available options to purchase new shares now. As the company operations begin to develop, the market may cause these shares to rise, to fall, or to remain the same in value. The value of these coins is commonly, in the mainstream, talked about in terms of USDT, a token designed to mimic the price of the USD. Essentially, the assets remain the same but are merely changed from a physical paper asset to a digital one. Asset Tokens follow the same functionality; they are a legal virtual representation of these shares.

Any investor who holds Asset Tokens of a company is subject to receiving the following benefits:

· Dividends — As the company grows, the market value rises.

· Access to the financial statements and information of the company.

· The option to stop their investment or repurchase tokens.

Entrepreneurs wishing to finance their projects can issue their own Asset Tokens. Once created, they can use the SharesChain platform to share their project and seek investment. This process of raising seed capital is a procedure that could usually take new companies months or even years. By using the SharesChain network they can reduce that time of setup thus allowing them to find trusted investors in a more efficient manner. By having their tokens available on the platform and facilitating their purchase, investors can have a simpler point-of-entry. In order to ensure this process is entirely legal, there need to be third-party service providers that oversee the proper documentation for the jurisdictional establishment of those companies. SharesChain facilitates this so neither party needs to spend a substantive amount of time searching for these legal third-party service providers. In addition, they will be provided a way to pay for and acquire these services using the SharesChain Token.

The price of the asset, the total value of the project, and the name of the Tokens issued by the company are all set by the entrepreneurs. As new investors acquire these Asset Tokens, they yield higher profits due to a higher trading frequency, as well as a greater efficiency, due to lower legal costs. Investors are likely to purchase Asset Tokens from several companies. When an Asset or Equity Token is traded, the transaction fee will be charged, and it will go to the fee pool. In addition, the companies who offer the equity token will pay the issuing fees. All fees are paid with a separate token, the SCTK.

The SharesChain Token (SCTK) is a currency token. It’s the network’s core, the fuel that powers its operations. The SCTK is the facilitator of encrypted assets and company assets. Specialized Service Providers (SSPs) are independent third-party individuals or companies within a specialized investment organization. These specialized service providers can also include legal service providers who understand the rules of law within their operational jurisdiction, have a legal grounding themselves, and have demonstrated that they understand the need for operating within a country’s regulations and guidelines. Investors in the SharesChain community can use SCTK as a currency to pay the SSPs as well as use the token for voting weight, to protect the interests of the community, and their own personal interests. Tokens are a valuable commodity both in the virtual and the real world alike. These SSPs may take part in recommendations, due diligence, legal compliance, KYC service providers and information disclosure for companies issuing Asset Tokens. Specialized Service Providers assist SharesChain through these previous actions stated and receive rewards in SCTK for their contribution. There lies the importance of having a token like the SCTK.

SCTKs serve as a proof of contribution to the process of creation and operation by members of the SharesChain network and community. SCTK is also awarded to those who encourage companies to enter the network, participate in the raising of initial funds, complete due diligence or legal compliance to tokenize or invest in asset tokens by digitizing the company’s assets. Earlier participation merits greater rewards, this works as an incentive for early users.

In the future, a greater adoption of diverse assets on the network will guarantee early investors a greater profit from their original tokens. Additionally, SharesChain Tokens are also used in service charges throughout the network.

Going back to the original question: Asset Tokens work as parts of ownership of the assets on the network. In this particular case, it refers to the digitized shares of new companies. In contrast, the currency tokens (SCTKs) help to facilitate all the steps involved in the process of an investor’s acquisition of these assets. Though they aid in the process, SharesChain does not operate these assets. SharesChain creates a platform for companies to find new investors that can help in the funding of their operations, as well as a means for investors to have more information-based security in their investment allocations. The future is online, and SharesChain’s innovation is the future of handling these real assets in the digital world.