Soraix: Brings the equity investment opportunity for everyone
Without a doubt, the high growth rate of private companies preparing to go public presents the best capital gains opportunity for investors. Alibaba as an example, just a few days before Alibaba issued an IPO, its shares were selling below $60 per share. On the first day of trading, the price skyrocketed to over $90 giving the Pre-IPO investors a return on investment of at least 48% percent. Likewise, Facebook is known to have made a fortune for its pre-IPO investors when it finally decided to go public. According to a report, Facebook shares were selling at $3.50 each, six years before the public sale. Just before the company filed for an IPO in April 2014, the price per share jumped to $42.72.
But even so, these kind of opportunities are not open to everyone and also come at high risk for the investors who access them.
According to the SEC, private companies are only allowed to sell their shares to accredited investors. These are investors with a demonstrated net worth of $1 million and above or a yearly individual income of $200,000+ (or $300,000+ and above for couples). Also, an investor can be considered as accredited if they are licensed or registered by the SEC as a broker or investment advisor. This means that if you decided to invest in high growth rate private companies such as UBER, Spotify, Dropbox or Airbnb today, you would need to meet the above thresholds.
Most investors do not qualify as accredited and therefore the opportunities presented by these companies are usually not an option for them.
Even for the accredited investors, the investment into the Pre-IPO markets is not without significant risks. These markets are highly illiquid so the investor cannot dispose of shares before the public sale.
When an accredited investor enters into a pre-IPO placement agreement, they commit to holding on the shares until the issuing company floats them in the stock exchange. This can take up to 10 years which means that that the investor’s capital is pretty much tied up until then.
The Stock Tokenization Solution
As we have seen, Pre-IPO investments are not only out of reach for most investors, but even for the few who can access them, they come with high liquidity risk.
Stock tokenization, which refers to converting traditional company shares into cryptocurrencies, is offering to bring liquidity into the Pre-IPO markets while ensuring accessibility to all investors interested in private equity.
For instance, a blockchain solution known as Soraix has introduced a solution where the companies of all sizes to raise capital via their own ETOs issued on Soraix platform. Soraix aims to transform traditional stock exchanges by tokenizing the exchange of assets via blockchain technology, resulting in wider adaptation and stability in the industry.
Likewise, investors who would like exposure to private equity can buy and hold the digital shares of companies in the form of equity tokens and trade them for other digital assets like cryptocurrencies or other equity tokens.
Soraix will provide significant benefits to both traditional investors (retail traders, general public) and business of all sizes. Traditional users will benefit from Soraix one-of-its-kind revenue sharing model, which enabling them to trade their Soraix Tokens (SRX) using a 1:1 peg against Equity Tokens issued on Soraix platform by companies raising capital, regardless of the value of either token. While, business clients will have the ability to raise funds at a fraction of the costs associated with an IPO, by issuing Equity Tokens on Soraix platform.
Moreover, Soraix is based in Swiss, and engaged to Swiss financial institutions. Thus, it will provide users with the peace of mind associated with Swiss privacy laws and worldclass corporate regulations.
In order to bring the platform to live, Soraix is currently conducting an ICO of SRX Token. The ICO is open to investors of all portfolio sizes, with no minimum token purchase, enabling the vast majority of those interested to participate in this opportunity.
The ICO has started on August 26, 2019 and will be ended on November 24, 2019. An amount of 60% (600,000,000) of SRX Token supply (1,000,000,000) will be available to purchase. With the initial price equivalent to 0.00025 ETH per token, Soraix developers intend to collect in the minimum target of $4,500,000, and maximum of $24,000,000 during the ICO.
For more information, kindly visit these following links:
Website: https://soraix.com/
Whitepaper: https://soraix.com/static/whitepaper.pdf
Facebook: https://www.facebook.com/soraixteam/
Twitter: https://twitter.com/Soraix3
Telegram: https://t.me/soraixico
Author's Bitcointalk: https://bitcointalk.org/index.php?action=profile;u=2049688
ETH Address: 0xe7cbfaFdb7371CF7211A6Ba6d0d46e6175728ab2