CoinPayments, the payment processor, plans to create their own tokens to attract more investors for creating the first wallet for all cryptocurrencies in the world. Chief Marketing Officer of CoinPayments, Ward Stirrat, told CoinTelegraph that the token will probably be released in the second quarter of 2016.
He didn’t reveal the name of their future token, saying they “haven’t settled on that yet because there are other issues they need to solve first”. Nevertheless, they are looking forward to the new token as they realize tokens and coins are developing rapidly in the Bitcoin industry. Ward Stirrat told CoinTelegraph:
“We understand that everybody in the space is likely to turn to tokens and coins to raise funds in the future. We want to service that market and allow for not just speculative holding but actual commercial activity. I think it’s a great way of circulating the ideas as well as currencies, because a currency becomes a message about the idea then. And I think that’s a great thing”.
However, these two instruments are rather different. They tend to attract different kinds of investors. Simon Dixon, CEO BnkToTheFuture.com and Fund Manager Bitcoin Capital says that “coin sales attract lots of smaller investors and equity sales attract a smaller number of high net worth investors”. He added to CoinTelegraph:
“Typically you would raise more on our platform through equity than through coin sale, but they are very different asset classes. Coins are more liquid, but they envisage higher risk. Equity has additional legal protections but is less liquid.
Combining the two would be an interesting strategy for the right company”.
Indeed, there are some successful companies that fortify Simon’s words. Storj launched a Crowdsale to develop their Blockchain cloud storage and then raised equity finance from online investors on BnkToTheFuture.com. Factom sold tokens to develop their non-profit open source platform and raised equity finance for their Blockchain security service.