Read How this FinTech is Developing NAO, a Global Stock Market
Imagine a global community of investors who can invest in any stock, anywhere in the world. It doesn’t matter if that stock is in Japan, Korea, Germany, India, Russia, Chile, Brazil, or even the Congo for that matter. With this globalized market you don’t even have to worry about such things as a language barrier, international fees, or currency conversions. You just invest where you want and move on to your next investment.
Even now in the current age of technology a lot of the stock market is centered around local markets, and it’s only getting smaller every day as investors are turning to more private companies rather than large international companies. This is mostly because the smaller, private companies are a safer bet than the large companies that might have trouble with the current changing markets.
So what if there was a way to go more global rather than local and extend your reach beyond your more localized markets?
Luckily, there’s news of that sort of market being developed now as we speak. A company called Capitalista, part of the Konzortia Capital organization, is developing a New Asset Offering (NAO) Index that does just that, and extends beyond local to a broader scope.
There’s also the fact that any company can use InveStart to raise capital right off the bat. How is this used? Simple: By issuing a New Asset Class (NAC) that’s then used to allow other investors to “opt-in” with their investments in the hopes of a return down the road. This process of capital raising is called an NAO and essentially what you’re doing is creating a new asset that acts as both a security and negotiable liquid instrument with intrinsic value that represents buying power at the same time. All of this works through InveStart, and after the NAO has been finalized and listed in Capitalista’s NAO Index, it is now a tradeable security that can be easily liquidated.
For investors, this is a great new tool for getting in on the founding of new securities/NACs, and on the ground floor of companies that are looking to expand. It is honestly a win/win for everyone involved in the market since companies using InveStart can use it to build up capital quicker than they could have through older methods with investors opting in real time with little to no downtime between investments.
What makes this even better is there’s even a developing market for this thanks to Capitalista who will list this new asset in Capitalisa’s NAO Index, and the assets can be traded just like any other asset on the secondary market for next to nothing. No fees for trading like stocks or funds. Just package it and trade it.
Now all of this might sound too good to be true. A lot of new tools and instruments have been created in the last year that have promised a lot of things, only to fall flat. What makes this any different?
What allows the creation of this NAO Index is the fact that these tradeable equities (NACs) have been created digitally by taking advantage of blockchain technology.
The blockchain technology, explained in simple terms, can be seen as a global network with no central governing entity which is what makes it decentralized and allows for information to be stored in what are called ledgers, but are not stored on anyone´s computer or server per se. Blockchain could very well be compared to the accounting books that were used not long ago where an immutable but transparent record was kept, and transactions were validated by those that took that role within the network. Information can be seen by everyone, but it cannot be “copied” nor modified, which eliminates the possibility of running into the double-entry problem if applied to the economics of money.
Timing! Just like anything else, if the time is right, that´s half the victory itself. The fact that blockchain has accomplished worldwide adoption, combined with a visionary mind that believes that the future can and should bring better opportunities at a global scale, creates the perfect condition for a globalized market of liquid and tradeable equities issued by private companies to become a reality and a necessity.
In the same way as when the Wright brothers gave birth to the first fully functional aircraft in 1903 they probably couldn´t picture a Boeing 747 carrying up to 660 passengers, those that created the first digital forms of decentralized assets using blockchain couldn´t image a thing such as a NAC and the NAO Index.
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