Austin, Texas, April 18, 2018 (GLOBE NEWSWIRE) -- Newchip is announcing that security token-based offerings and blockchain powered companies are now available on its marketplace platform. Ranked as the #1 startup app in the app store, Newchip recently launched a web platform and has featured more than 800 startups, small businesses, and pre-IPO deals from over 50 funding platforms nationwide.
“The market’s rapid shift away from unregulated ICOs and towards securitized tokens was a significant development that influenced our decision to include this exciting, new security type. The use of tokens as a means for debt and equity offerings is growing rapidly and we’re delighted to include these new securities for our investors,” said Newchip Co-Founder and COO, Judd Hollas.
Over the past few months, the U.S. Securities and Exchange Commission has moved towards the regulation of digital securities for raising business capital to ensure adequate issuer compliance and investor protections. Companies in the industry are moving forward with new technologies to bring securitized tokens into the forefront, with the hopes of replacing paper certificates in the coming future. In fact, many market participants believe that securitized tokens will enable enhanced liquidity, trading opportunities, new investor audiences, and cost savings.
According to Newchip’s Founder and CEO, Ryan Rafols, “In the last year, crypto had an explosive growth phase and many people made money; however, many people also lost money in fraudulent deals. At Newchip, we believe in blockchain technology, but we know that the future for ICOs and tokens is through securitization. Rogue companies and bad actors looking to get rich quick will not go through the regulatory hoops and requirements to become a legitimate investment, and tokens that do want to operate in the United States will need to become securitized tokens moving forward.”
One of the new companies featured on Newchip offering securitized tokens, Witnet, raised $1 million in debt capital to fund its blockchain-empowered technology for creation of smart contracts on Republic.co. Travis Brodeen, Co-Founder and CTO of Newchip, stated “Smart ledger technology is going to change how we live our lives and how we interact with each other daily, and Witnet is an early success story for securitized tokens.”
About Newchip:
Newchip connects new and experienced investors to business and real estate investment opportunities around the nation. Investors can start investing with as low as $100 and entrepreneurs can raise up to $50 million. In 2017, $300 million in investment capital was sought by 800+ listed companies. For more information, visit www.newchip.com.