We are more excited to let you all know, today we launched a new product on ICOventure, which is like Stripe for Security Tokens. Companies that have issued security tokens can now pay out dividends in currencies they prefer. This will be giving a freedom to investors because they can receive funds not only in Ethereum, or in whichever blockchain the token was issued at. By doing so, it allows companies who are issuing Security Tokens to include more serious investors who are looking for long-term investment.
Currently, there’s a gap in the funding industry, where companies would like to issue their security token, and investors would like to invest in companies, that are promising to pay out dividends.
Until they run into the question, if a startup issues a smart contract/security token that runs on Ethereum, then the investors who purchased the tokens, can only receive payments in Ethers. This, on the one hand, is a great news for a hardcore crypto fans, but on the other hand, if the company would like to reach more seasoned investor who’s looking to invest into a startup that might flourish in 2 to 5 years. In that case, seasoned investors are running into one big concern, blockchains are relatively new, and getting returns on investments in one certain blockchain currency might not be the best solution.
For example, if the smart contract is issued on Ethereum, we will never know what might happen to the value of one Ether or the trading volume. After you have received your long waited dividends you will probably want to re-invest, cash out, or whichever action supports your investing strategy. But if no one is buying ether, then the company value is indirectly tied to the value of Ethereum.
This is one of the unspoken reasons why more seasoned investors are skeptical about security tokens. By using ICOVenture Dividend Payment Gateway companies can make sure that they can pay out dividends to their investors in a currency they are already using.