Digital assets have become an increasingly popular way to fund business ventures and investments. You’ve probably heard of non-fungible tokens (NFTs). These digital assets, often tied to a piece of art, or perhaps a tweet, took the world by storm in 2021.
Digital asset-backed tokens leverage technology and are a digital claim tied to a physical asset, such as real estate, energy, and equity, to more exotic assets like art and sports teams. Essentially, most things can be tokenized. Asset-backed fundraising provides a democratic solution that opens up investment opportunities to individuals from across society and is a tangible funding model for businesses looking to scale rapidly.
But you may be asking, what can you use digital assets for? Here are 5 of the most popular use cases to get you started:
Investing
Whether you’re a seasoned investor or a complete newcomer, you can invest in a promising venture with digital assets. Unlike other digital investments on the market, tokens are more secure because they are asset-backed, meaning that they are linked to real underlying assets that allow for automatic and fair market coordination.
Digital Art
Another popular use case for digital tokens is tokenizing art. Digital artworks are converted into NFTs, and a unique and non-interchangeable unit of data is stored on a digital ledger using blockchain technology to establish proof of ownership and provenance. This has the potential to reduce counterfeiting and create a more accessible form of building art collections.
Stablecoins
Stablecoins are a digital currency relatively less volatile than alternatives as it is pegged to a stable reserve asset, currency, or commodity, such as US dollars or gold. Supply can be regulated by an algorithm. They still carry some risk and are non-interest bearing.
Real Estate
Once the reserve of large funds and wealthy investors, digital assets are opening up the world of real estate investing. Blockchain technology converts ownership rights into individual digital tokens, called fractionalization. The fluid nature of digitizing real estate assets reduces intermediaries, steps, and legal hurdles that often need to be overcome, which increases liquidity and makes transactions more secure, efficient, and accessible.
DigiFunds has built an asset-backed fundraising platform that enables businesses to obtain sustainable and significant capital funding to scale and expand their operations. This secure and risk-reduced model facilitates the Initial Coin Offering (ICO) process and provides businesses with the financial backing they require to take their venture to the next level.
To learn more about the DigiFunds asset-backed token fundraising model, visit the DigiFunds website.