Dacxi Chain Update: Transforming equity crowdfunding with tokenization
Dacxi Chain Update: Transforming equity crowdfunding with tokenization
In the latest Dacxi Chain update, CEO Ian Lowe discusses the platform’s mission to connect global investors with entrepreneurs, democratizing access to hyper-growth opportunities. Through leveraging blockchain and tokenization, Dacxi Chain aims to overcome the limitations of traditional equity crowdfunding, offering a scalable, decentralized network for seamless transactions. As they approach the launch of their MVP, the vision is to operate globally at scale within a few years, all while maintaining regular, transparent updates to the community.
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The Dacxi Chain update with CEO Ian Lowe
On this episode, Andy speaks with Dacxi Chain CEO Ian Lowe. The Dacxi Chain aims to connect entrepreneurs and investors all across the world, giving entrepreneurs access to a global pool of potential investors and providing investors with hyper-growth opportunities. Ian says that the Dacxi founders identified equity crowdfunding as an opportunity several years ago, after which they conducted exhaustive research into the industry to build a business model architecture. They found that equity crowdfunding is constrained by its local nature and by perceived barriers for investors around owning equity in private companies. To address these challenges, they are pursuing a decentralized model where existing equity crowdfunding platforms can plug into an infrastructure capability that immediately transitions them into becoming part of a network along with other participating platforms. Blockchain and tokenization can accelerate the adoption of equity crowdfunding by providing digital records through smart contracts on immutable blockchains so people can trade tokens in secondary markets. The Dacxi Chain is in the final stages of building its MVP before launching later this quarter under its three-stage expansion plan. The ultimate goal is to operate globally at scale within a few years or less. Regular updates will be provided until launch, which is expected later this quarter. Despite the complexity of the project, progress is being made according to schedule.
Andy Pickering – Host
Hey, folks, Andy here. Welcome to Unleashed with the Dacxi Chain, the podcast that features experts from within Dacxi and from across the industry. Experts who are here to share their insights on developments shaping the global crowdfunding economy. Now, if you’re listening to this podcast, you are probably aware that a crowdfunding revolution is coming and it is set to unleash true innovation at scale. We’re talking about the world’s first global equity crowdfunding network, and of course, it is called the Dacxi Chain. Now on today’s Podcast, I’m joined again by Dacxi CEO Ian Lowe to get a status update on everything on the Dacxi Chain. Ian, welcome back to this show.
Ian Lowe – Guest
Hi, Andy, how are you doing? Good to be with you.
Andy Pickering – Host
Excellent. I’m doing well. Ian. Pleasure to have you here. Ian, the Dacxi Chain is about connecting entrepreneurs and investors all across the world. It’s about giving those entrepreneurs access to a global pool of potential investors, giving those investors access to hyper growth opportunities. This, of course, is the vision of the Dacxi Chain. Ian, how long has this been in the works? How long has the team been working on the Dacxi chain?
Ian Lowe – Guest
Yes, thanks for your question. The founders identified the opportunity associated with equity crowdfunding, really not realizing its true potential. That opportunity was identified a few years ago. And so the work that’s transpired since then has been an exhaustive research process into the industry. The various segments in the industry, the constituent players in the industry, the technologies that operate in the industry, how those technologies work, and how that ecosystem operates more generally. And then that process established some really important insights that were then used as foundations to build a business model architecture. And from there, the business has evolved into going and building the underlying technology that makes all of that possible. So look, it’s been going on now for a couple of years.
We’ve tacked along the way, of course, as you do over when you’re innovating in the way that we are. So we’ve made refinements along the way. But this is not something that we picked up yesterday. We’ve been at it now for a number of years.
Andy Pickering – Host
Got it. Thank you, Ian. And look, another way of describing what the Dacxi Chain is all about is simply, crowdfunding. I’d love it if you could perhaps talk about the potential of crowdfunding at scale, which is what the Dacxi Chain is all about, right?
Ian Lowe – Guest
Yeah, that’s absolutely right. So look, there’s a couple of core principles that really are the premise to the whole project. The first is a fundamental belief that crowdfunding should change the world. And it should change the world for two core groups of people. One being growth companies that are looking for funding, and the other being everyday investors that want access to great growth companies to invest in and realize a return at some future date. So crowdfunding, when it first came along, was this very exciting new world where the benefits of connecting investors at scale and large numbers of well qualified and suitable growth companies ready for investment would be realized, essentially redrawing the lines of the whole innovation economy.
I mean, if we think about how growth companies are funded today, something like 99.5% of that funding comes out of venture capital. Now, venture capital is a large market. In 2022, it’s about a half a trillion dollar market, but it’s controlled by a surprisingly few number of very large players who operate a very small number of primary locations. So essentially what it means is that this democratization, if you like, for both the everyday investor and really smart companies who are growing and need growth capital to continue growing, that whole dynamic or opportunity of the byplay between the supply and demand I’ve just described is massively constrained when we only operate in a world where 99.5% of investment capital is coming from one source.
So if we look at crowdfunding today and we realize that it simply hasn’t developed to become what it should become, which in our view is a 100 billion dollar market, the question is why? Why hasn’t that happened? And what all of our research revealed is that there are essentially two underlying reasons why crowdfunding is constrained today. And the first of those is that crowdfunding is almost exclusively local. It’s not a global proposition. So you might have multiple crowdfunding platforms that operate in multiple corresponding markets, but they are essentially local businesses. So they attract local companies looking for capital. We call them issuers. They attract local issuers looking to raise capital, and then they seek to raise that capital from local investors all within one market.
The primary reason for that is that it’s extremely problematic for a company or a crowdfunding platform in any given country to go and build a database, a meaningful database of well-qualified investors in other countries around the world. I mean, how do you do that? That’s extremely difficult to do, it requires time and capital that these companies don’t have. And so by definition, equity crowdfunding platforms specifically are local operations. And the fact that they’re constrained in this way limits the scale that is achievable for equity crowdfunding as an industry more generally.
And the second constraint is around the perceived barrier for investors around owning equity in a private company. So we’re obviously talking about private companies, public companies. Theoretically, anybody can own or dispose of shares in public companies. We’re talking about equity crowdfunding with private companies and specifically gross companies. And so for a lot of everyday investors, the threshold of owning equity in a business where I don’t know what my liquidity event might look like, is too high of a barrier, and so it discourages them from investing. So these are the two issues, a lack of scale and the barrier in the mind of the investor around a liquidity event. These are the two things that are getting in the way of equity crowdfunding becoming a 100 billion-dollar market.
Andy Pickering – Host
Yeah, got it. Ian, so you talked about how traditionally crowdfunding is more locally based, right. It happens all over the world but it is constrained within local jurisdictions. And of course, the vision of the Daxci Chain is to take equity crowdfunding global. What are some of the key things that need to happen to unlock this global potential by making the move from local to international? I’ve seen you mention the Dacxi Chain network effect. So that might be part of this as well.
Ian Lowe – Guest
We’ve looked at this really closely and thought a great deal about it. Look, globalizing the industry can be done in one of three ways. The first is under what we would call a proprietary model. And this is where essentially one company expands into multiple markets over a period of time, and is able to compete in a very successful way in every market. And as a singular entity, they become a global juggernaut that essentially owns the industry. And so, look, the parallels might be the likes of Google, for example, or Amazon. The challenge with this, of course, is that if you’re an investor you’re going to have to pick the right horse and you’re going to have to wait many cycles and many years for that global dominance to take effect.
So the proprietary model is a high risk proposition for an investor and the period to harvest is an extremely long one. And the quality of the outcome is ultimately in the hands of very few at that point. It’s not really a network, it’s just a single business that’s dominating an industry globally.
The second model is a centralized model. And so this is akin to a business like, let’s say, Booking.com. So they are an aggregator where they’ve created a marketplace which is its own standalone destination. And that marketplace aggregates all of the opportunities that exist across its constituent partners businesses. And so in the world of equity crowdfunding, it would mean that a centralized and incremental equity crowdfunding platform is created, and needs to be fully licensed. It needs to be licensed in every market in which it operates.
And it needs to do deals with existing equity crowdfunding platforms where they share those deals with this aggregator, this centralized aggregator. Of course, the problem with that is that just like the Booking.com model, and there are many examples of this approach, is that the aggregator ends up actually competing with the platforms that it’s partnered with. So really what the aggregator relies on is the investor coming to its own marketplace rather than going to the marketplace of the partner that provided the deals in the first place. So that’s highly problematic. And we’ve seen this become a really difficult business model in a whole range of industries, not just travel, but real estate and automotive and any number of industries. So we believe the centralized model is highly problematic. That brings us to the third one, which is a decentralized model.
Now, what we mean by decentralized is essentially this idea of providing a technology infrastructure which existing equity crowdfunding platforms can plug into. And through that infrastructure they become part of a network along with other participating equity crowdfunding platforms, where deals can be shared from the platform that is the originator of that deal into an ecosystem of multiple other platforms, all of which have databases of investors within those platforms. And of course, that same dynamic in reverse. So essentially what we’re talking about is a nondisruptive infrastructure capability that immediately transitions a local crowdfunding proposition to being a global crowdfunding proposition, where they can access investors from all the other platforms around the world.
And really what it does is it gives those platforms, and therefore the issuers that are raising money through those platforms, access to infinitely more capital, which means that more deals can be done and those deals can be done faster. And for the investor, they now have access to a vast catalog of investment opportunities. So the network effect that you refer to is really where, as we build this network of participating platforms, over time, the growth of that network accelerates because you have this multiplier or compound effect whereby the increase in the number of deals and the increase in the number of investors that participate through that network creates more investors and attract more deals.
And the whole thing compounds through this network effect where if we start to achieve the scale through this global capability, we start to achieve the scale that realizes the true potential of equity crowdfunding. So that decentralized model is vastly superior in our view. And that’s the model that we’ve pursued in the technology that we’re building.
Andy Pickering – Host
It reminds me, when you’re talking about the network effect, it reminds me of Metcalf’s law, which is that the financial value or impact of a network is proportional to the number of users on the network. So of course the network effect grows as more people are engaging with the network, then it starts to go exponential and the value increases to all participants in the network. And you’re talking about this as a decentralized network, Ian. So my next question is how does Blockchain and Tokenization fit into this?
Ian Lowe – Guest
Yes, this relates to the second point around this barrier for certain investors, there remains a perception that having equity in a privately held company is a problem because I don’t know when that equity will be crystallized and I can get the benefit of the growth in the value of that equity. And so when we looked at the whole equity crowdfunding model and the global opportunity to become this 100 billion dollar industry, one of the things that we realized would greatly or potentially greatly accelerate the adoption of equity crowdfunding for the everyday investor was being able to tokenize the equity that they receive when they invest. And the reason for that is that if my legal record of ownership of shares in a company that I’ve invested in, if that legally binding record of ownership is a digital record through a Token, a digital token, via a smart contract on a blockchain, an immutable record, then what it gives me is the ability to trade that token on any number of secondary markets that already exist. And the number of these is growing every week. So it means that I can tap into a secondary market to find a buyer for that equity in a way that is literally impossible now. If I have a good old sort of paper-based share certificate sitting on my desk at home, we can totally transform that whole liquidity event proposition for the individual investor if we tokenize the shares. And look, this is not remotely controversial. Blockchain has been around for a long time. The number of real-world applications solving real-world problems built on Blockchain is growing exponentially.
I think every leading business consulting firm in the world has come out and said that the Tokenization of all asset classes is absolutely inevitable and by 2030 will be a 20-something trillion-dollar industry. So we’re talking about tokenization is on a path to becoming ubiquitous, just like the Internet was 20 years ago. And so on that basis, leveraging the benefits of blockchain and tokenization we think has the potential to accelerate the acceptance and adoption of equity crowdfunding as a broadly accepted method of investing for everyday investors. So we think it’s part of the solution.
Andy Pickering – Host
Got it. I love it. Just as we start to finish off, can we get an update in terms of where the Dacxi Chain is at and the next steps. I believe you call it the three stage expansion plan, please talk us through what that looks like.
Ian Lowe – Guest
The stage we’re in at the moment is really the final stages of the build of what we call the minimum viable product. And we’ll make an announcement later this quarter about the launch of that minimum viable product. And we’ll also be looking to make an announcement about the first deal that will go through the Dacxi Chain technology and also share with everybody who our foundation partners are, that is established equity crowdfunding companies working with us on this very important first deal. Proof of concept. So that’s the stage we’re in at the moment. That’s the timeline. We’ve given guidance on that previously and none of that has changed once we get through that. The first deal is about saying the technology works, the partners are real, a deal has been successfully executed, and on that basis we have a viable business.
So that’s the first stage that’s really important. The stage that we enter after that is really about building out the network. And so by that we’re talking about doing deals with equity crowdfunding companies in select markets around the world as foundation partners to build out the first version of the global network. And so this is about meeting with these leading players in select markets around the world, agreeing how we’re going to work together and establishing that version of a global network. So that’s that second phase. And then the third phase is really about scaling all of that and doing it in an accelerated fashion. So in the same way that you’ve described, once we have the foundation partners in place, we want to greatly accelerate the number of participating partners on the Dacxi Chain network.
And we envisage a scenario where as we build momentum and look, the response we’ve had from equity crowdfunding companies we’ve talked to has been overwhelmingly positive. We’re not asking these companies to put any money on the table. We’re building all the technology. The integration points are very simple and easily executed. The business models we’ve put in front of them are resonating. So we expect that scaling of the network, once we’ve got all the foundation partners in place in phase two, that scaling of the network and the acceleration and growth of the business that comes from that, we expect that will unfold reasonably quickly.
So what we’re talking about is getting to a point in the future where we are operating globally at genuine scale, with all of the important markets participating and a really significant number of the leading platforms participating within a handful of years or less. So that’s that third phase is accelerating the growth of the network.
Andy Pickering – Host
Got it. Thank you, Ian. Thank you for reminding us what the Dacxi Chain roadmap looks like. And yeah, that’s exciting. So later this quarter, in a few months, you’ll be in a position to tell folks what that MVP looks like and the foundation partners.
Ian Lowe – Guest
Yeah, that’s absolutely right. So we’re committed to regular updates. We’ve been providing those for a few months now. We’ll continue to provide those right up until we make the launch announcement, which, as you can imagine, we’re really excited about. And at this point in time, we’re making refinements to the technology to make sure that the first deal that goes through is going to be a successful outcome for everybody involved and we’re really confident about that.
Andy Pickering – Host
Fantastic. Well, I’m sure I speak on behalf of the listeners, a pleasure to have you on and to hear what you’ve got to say today. We can’t wait to hear more details in due course later this quarter. But for now, thank you very much for the update. All the best, Ian, and bye for now.
Ian Lowe – Guest
Good to talk to you, Andy. Cheers.
The Future of Crypto Valuation: Unraveling the True Potential of Token Value in a Rapidly Evolving Market
Assessing Dacxi Coin’s Commercial Demand and the Need for a New Era of Token Valuation Metrics
As the crypto market evolves, it becomes increasingly evident that traditional approaches to assessing token value, based primarily on technology metrics, are inadequate. With financial analysts entering the field, the crypto industry is naturally shifting toward emphasizing commercial demand as a critical determinant of token value. This article delves into the complexities of this shift, exploring the valuation of Dacxi Coin, an innovative project poised to disrupt the global equity crowdfunding market.
I. The Problem with Traditional Crypto Valuation Metrics:
1. Justifying Market Capitalization through Ecosystem-based Analysis:
A coin’s current value is simply the price someone would pay for it today, factoring in the liquidity of the market for that coin. Market capitalization, a widely-used metric for valuing crypto projects, is calculated by multiplying the total number of coins in circulation by the current market price of the coin.
In the absence of credible income streams for most assets, the industry has justified a token’s market capitalization and its future potential based on ‘ecosystem metrics’, such as the number of developers in its community, dApps launched, projects built, follower community, or daily users. However, as an asset driven by demand and income streams, a crypto-token’s ecosystem only serves as an indication of market strength or potential. Ultimately, this approach is as flawed as the ‘counting eyeballs’ strategy used during the 1990s Internet Dot Com boom.
2. The Case of Ethereum:
Ethereum (ETH) exemplifies the limitations of traditional valuation metrics. With a market capitalization of $225bn, analysts struggle to justify this valuation based on its annual revenue from fees (less than $2bn). Its $19bn in locked ETH in staking is based on that fee income, so it delivers approx a 5% return, which is unjustifiably high. The valuation is 100 times fee income, with leading commentators predicting 200-500% price growth. Ethereum may have the world’s largest and strongest ecosystem, but justifying a 500 times fee income growth is challenging, especially considering the rise of strong competitors offering much lower fees and the entry of major companies like Google, Microsoft, and Ant Financial into the token platform space.
3. Commercial Realities:
While these ‘ecosystem’ metrics were the only credible valuation argument in the early days of crypto development, they fail to capture critical aspects of a project’s commercial viability, such as income generation and the competitive landscape.
II. The Need for a New Approach to Crypto Valuation:
1. The Importance of Commercial Metrics:
To accurately assess a crypto project’s value, like all financial sectors, the industry will shift its focus to commercial metrics like project income and the likelihood of competitive price pressure. By emphasizing these factors, investors can gain a more comprehensive understanding of a project’s potential and make more informed decisions.
2. Adjusting for Market Dynamics:
The crypto market is continuously evolving, and as new players enter the space and existing projects mature, it is crucial for valuation methods to adapt accordingly. By incorporating commercial metrics into valuation models, analysts can better account for market dynamics and more accurately predict future capitalization growth.
3. Aligning Valuations with Traditional Finance Principles:
Incorporating commercial metrics into crypto valuation models can help bridge the gap between the crypto world and the traditional finance sector. By aligning valuation methodologies with principles used in mainstream finance, crypto projects can attract a broader base of investors, fostering greater market stability and growth.
III. Dacxi Coin: A New Benchmark for Token Valuation:
1. The Launch of the Dacxi Chain and Tier 1Exchange Listings:
As the Dacxi Chain approaches its launch and listing on Tier 1 exchanges, the question of Dacxi Coin’s valuation takes center stage. Traditional metrics that focus on the developer community and dApp projects are ill-suited for valuing Dacxi Coin, as it is a fundamentally different kind of project.
2. A Unique Value Proposition:
Unlike projects like Ethereum, Uniswap, or Chainlink, Dacxi Chain is not a ‘tokenization infrastructure’ project where its token’s demand and value are based on fee income. Instead, Dacxi Coin serves as an internal currency for a global equity crowdfunding network, facilitating investments across borders and offering a faster, more efficient alternative to traditional fiat systems and stablecoins. A secondary use case for Dacxi Coin is as a Dacxi blockchain currency for fees, like ETH, but its demand is tiny compared to transactional volume.
IV. Valuing Dacxi Coin Based on Commercial Demand:
1. The Global Equity Crowdfunding Network:
Dacxi Coin’s value is driven by the demand generated from transaction volume on its global equity crowdfunding (eCF) network. This network aims to revolutionize the equity crowdfunding option for early-stage investments by providing global scale. Deal issuers gain access to a worldwide pool of investors, and investors gain investment opportunities from across the globe, underpinned by global standards. Blockchain technology has seven potential applications, from tokenized equity to cryptocurrency-based payments to global KYC.
2. The Inefficiency of Fiat Systems and Stablecoins:
Dacxi Chain requires its own currency because traditional international fiat payment systems are too slow and expensive for a global network that will eventually encompass deals and investors from 100 countries using 100 currencies. The network could require investments to be sent from any country to any other country, creating the need for 100 x 100 = 10,000 different currency pairs. The stablecoin option is burdened by limited currency pairs and very negative regulatory challenges. Dacxi Coin is the best option for the network.
3. Demand is based on the Network:
The quantity of Dacxi Coin issued is fixed, so its value is based on demand produced by the Dacxi Chain network. The Dacxi Chain links local equity crowdfunding platforms together in a network. Each platform launches deals for investment, and its investor base invests in deals offered from the network. The Dacxi Coin moves the investments from investor to deal issuer.
4. Demand is Empowered by the Network Effect:
The ‘network effect’ is the power behind digital leaders such as Facebook, Uber, and Amazon. The more users they have, the more network connections they create, adding to the value exponentially. The more eCF platforms join the Dacxi Chain, the more deals attracted and offered, the more investors attracted and investments made, attracting more platforms. Investment volumes should grow exponentially, driving demand for Dacxi Coin exponentially.
V. Estimating Dacxi Coin’s Market Potential:
1. The Early Stage VC Market and the Global eCF Market:
Based on the size of the Early Stage VC market in 2021 at $230bn, a global eCF market worth $100bn annually is conceivable. Considering the growing interest in alternative investment opportunities and the potential of crowdfunding in developing economies of Asia, this projection may be conservative.
2. Market Share and Dominance in the Decentralized eCF Network:
A decentralized eCF network could capture 90% of the market share, with one dominant company claiming at least 80% of that share. In this scenario, Dacxi Coin could potentially command an annual turnover of $70bn.
3. Monthly Turnover Fluctuations:
Given the inherent fluctuations in investment activity, Dacxi Coin’s monthly turnover could range between $3bn and $15bn. The market will decide how much currency will be held to support this turnover.
4. Comparison with Ethereum:
Ethereum’s 100x annual turnover should not be compared with Dacxi Coin’s potential $70bn turnover, as some have suggested. Dacxi Coin will need to be bought and sold to facilitate investments with high currency velocity. Total demand would be a couple of months turnover.
Embracing the Future: A New Era of Crypto Valuation and the Unfolding Potential of Dacxi Coin:
While traditional metrics make it challenging to accurately value most cryptocurrencies, Dacxi Coin’s valuation is refreshingly straightforward. It is based on the expected demand generated by the global crowdfunding platform network set to launch in Q2/2023. As the crypto market continues to evolve, the industry must embrace new valuation methods that prioritize commercial demand, ensuring that investors can make well-informed decisions in a rapidly changing landscape.
As the crypto space matures, it is essential to recognize the limitations of traditional valuation metrics and adopt innovative approaches that better capture a project’s true potential. By shifting the focus to commercial demand and market dynamics, the industry can facilitate more accurate valuations and foster informed decision-making among investors.
The case of Dacxi Coin serves as a powerful example of the need for a new approach to crypto valuation. With its unique value proposition and potential to disrupt the global equity crowdfunding market, Dacxi Coin’s valuation cannot be adequately assessed using technology-based metrics. Instead, its potential lies in the commercial demand it generates as a transactional currency within a rapidly growing market.
As the global eCF market expands and more investors and deal issuers embrace the Dacxi platform, the demand for Dacxi Coin is expected to increase, contributing to its growing value. This demand-driven valuation approach aligns with traditional finance principles, helping to bridge the gap between the crypto world and mainstream finance.
In conclusion, the future of crypto valuation necessitates a paradigm shift that moves beyond traditional technology-based metrics and embraces commercial demand as a critical determinant of token value. By adopting this new approach, the industry can better assess the potential of innovative projects like Dacxi Coin and support the continued growth and maturation of the crypto market as a whole.
The analysis presented in this article underscores the importance of understanding the intricacies of token valuation, particularly as the market continues to evolve at breakneck speed. As the industry matures, investors and analysts alike must be willing to adapt and embrace innovative valuation methodologies that better capture the true potential of crypto projects. In doing so, we can ensure that the future of crypto valuation is as bright and promising as the innovative technologies it supports.
Unleashing Exponential Growth in the Global Equity Crowdfunding Space: Dacxi Chain's Vision and Strategy
- The global equity crowdfunding space is evolving rapidly, with innovative platforms and technologies enabling new opportunities for businesses and investors alike. Dacxi Chain is at the forefront of this transformation, leveraging the power of blockchain and the network effect to create a decentralized ecosystem that connects investors with investment opportunities across the world. In this blog post, we’ll delve into the insights shared by Ian Lowe, CEO of Dacxi Chain, in a recent video update, exploring the company’s vision, strategy, and its potential impact on the global equity crowdfunding landscape. You can watch the full video here:
The Power of the Network Effect
Before diving into the details of Dacxi Chain’s strategy, it’s essential to understand the concept of the network effect, which underpins the company’s approach to growth. Most companies grow in a linear path, with incremental growth over time. However, some businesses, like Uber and Facebook in their formative years, experience exponential growth driven by the network effect.
The network effect refers to the compound impact of building an ecosystem where a fast-growing number of providers transact with a rapidly increasing number of customers. As the number of participants in the ecosystem multiplies, the network’s value and growth potential also expand exponentially.
Dacxi Chain leverages the network effect by connecting equity crowdfunding platforms to one another through its blockchain-based infrastructure. As a result, investors on one platform can access deals on other platforms, creating a bi-directional flow of investment opportunities and capital. This dynamic, combined with the growing number of platforms connected via Dacxi Chain, leads to a compound growth effect in which more platforms lead to more deals and investors, further attracting even more deals and investors, and so on.
Dacxi Chain’s Three-Stage Expansion Plan
To capitalize on the network effect and drive exponential growth, Dacxi Chain has devised a three-stage expansion plan:
- MVP (Minimum Viable Product): In this initial stage, Dacxi Chain focuses on a few platforms in the Asia-Pacific (APAC) region to pioneer the core elements of the project. With a proven demand for the technology and a functioning platform, the primary goal is to validate the business model and refine the platform’s features.
- Expansion into Key Markets: Once the MVP stage is complete, Dacxi Chain plans to expand the number of partner platforms, targeting around ten platforms in eight markets worldwide, all operating in English. This expansion will increase the network’s reach and facilitate access to a broader range of deals and investment opportunities for investors.
- Unleashing the Growth: In the final stage, Dacxi Chain aims to bring licensed equity crowdfunding platforms from across the globe into its network. With potentially hundreds of partners, the network effect will reach a tipping point, resulting in an explosion of deals, investors, investments, and demand for the Dacxi Coin.
Presently, Dacxi Chain is focusing on the MVP stage and has made significant progress in refining its platform and establishing partnerships in the APAC region.
The Importance of Circulating Supply and Dacxi Coin’s Value
In addition to its ambitious expansion plans, Dacxi Chain has also made headlines recently with CoinMarketCap acknowledging the accurate circulating supply of Dacxi Coin. With a fixed total supply, Dacxi Coin’s circulating supply sits at an impressive 90%, placing it in a strong position compared to other major cryptocurrencies like Cardano and Polygon.
A high circulating supply is crucial to avoid devaluation from an influx of new coins, as it reassures the market that there won’t be a sudden flood of coins that could undermine their value. The value of Dacxi Coin is driven by investment demand and the need to move investments across the world, converting between different currencies. As Dacxi Chain moves into Stage 3 of its expansion, the network effect will ignite exponential growth, further increasing the value of Dacxi Coin and its utility within the ecosystem.
The Impact of Dacxi Chain on the Global Equity Crowdfunding Space
As Dacxi Chain continues to expand and connect equity crowdfunding platforms worldwide, the company’s innovative approach has the potential to revolutionize the global equity crowdfunding landscape in several ways:
- Increased Access to Investment Opportunities: By connecting platforms, Dacxi Chain enables investors to access a broader range of deals across different regions, industries, and market segments. This increased access will allow investors to diversify their portfolios and discover new, high-potential investment opportunities.
- Enhanced Cross-Border Investments: Dacxi Chain’s blockchain-based infrastructure facilitates seamless cross-border transactions, making it easier for investors to participate in deals outside their home countries. This will encourage capital flow across borders, stimulating economic growth and development in various regions.
- Empowering Smaller Platforms and Businesses: By leveraging the network effect, Dacxi Chain can help smaller equity crowdfunding platforms and businesses access a larger pool of investors and capital. This will enable these platforms and businesses to compete more effectively with larger, established players in the market.
- Greater Transparency and Trust: Blockchain technology offers enhanced transparency and security, which can help build trust among investors and businesses within the equity crowdfunding space. This increased trust can, in turn, encourage more participation in the market and fuel further growth.
- Streamlined Regulatory Compliance: Dacxi Chain’s platform can facilitate compliance with various regulatory requirements in different jurisdictions by providing a standardized, transparent, and secure infrastructure for conducting equity crowdfunding transactions.
Final Thoughts: A Promising Future for Dacxi Chain and the Global Equity Crowdfunding Market
Dacxi Chain’s innovative approach to harnessing the power of the network effect and blockchain technology has the potential to reshape the global equity crowdfunding space, driving exponential growth and creating new opportunities for investors and businesses alike. As the company progresses through its three-stage expansion plan, the network effect will only continue to amplify, ultimately leading to a more interconnected, accessible, and vibrant market for equity crowdfunding.
With unwavering support from its investors and community, Dacxi Chain is well-positioned to achieve its ambitious goals and establish itself as a powerful, global network that fuels deals, investments, and coin demand. The future is truly exciting for Dacxi Chain, and we look forward to witnessing the impact of its growth on the global equity crowdfunding landscape.
Be sure to stay updated on Dacxi Chain’s progress by watching Ian Lowe’s video update here and following the company’s latest news and announcements. Your continued support will play a vital role in driving Dacxi Chain’s success and transforming the global equity crowdfunding market for the better.
The Global Financial Revolution: How Dacxi Chain is Transforming Equity Crowdfunding Through Cryptocurrency
In an ever-evolving financial landscape, traditional solutions, business models and technologies are being reimagined and disrupted. And a new new wave of blockchain enabled innovation is underwriting some of the world’s most exciting and significant changes.
Dacxi Chain is one of these. A groundbreaking platform that’s set to redefine what is possible for the world of equity crowdfunding. In this blog post, we’ll delve into the intricate details of Dacxi Chain, its innovative approach to equity crowdfunding, and the pivotal role of its native cryptocurrency, Dacxi Coin.
The Vision and Mission of Dacxi Chain
The core mission of Dacxi Chain is to democratize access to investment opportunities and create a truly global equity crowdfunding ecosystem. By connecting multiple, independent, and fully licensed local equity crowdfunding platforms from around the world, Dacxi Chain is able to create a seamless, interconnected investment experience for users across the globe.
Ian Lowe, the CEO of Dacxi Chain, explains that the company aims to “turn a whole bunch of otherwise disparate and disconnected local equity crowdfunding propositions into a singular global proposition.” In other words, the platform seeks to enable investors from all walks of life to participate in growth opportunities, regardless of their location or the local currency they use.
For a more in-depth look at the Dacxi Chain vision and the exciting potential it holds, be sure to watch Ian Lowe’s video, where he, as the CEO of Dacxi Chain, provides a comprehensive overview of the project and its unique approach to tackling the challenges of global equity crowdfunding.
A Practical Example of Dacxi Chain in Action
To illustrate the transformative potential of Dacxi Chain, let’s consider a practical example involving a licensed crowdfunding platform in Korea. Let’s say this platform, which typically connects Korean investors and Korean growth companies that seek growth capital – all in Korean Won – is connected to the Dacxi Chain network.
As part of the network, the Korean platform can now share local investment opportunities with the rest of the world, while also giving its users access to additional investment opportunities from the rest of the world. This creates a powerful network effect, opening up new avenues for investment and growth for both businesses and investors.
Now, let’s imagine another licensed equity crowdfunding platform in Germany, is also connected to the Dacxi Chain network. German investors can now access deals from Korea, while German companies seeking capital can tap into a pool of potential investors in Korea. And the same in reverse – Korean investors can see and invest in opportunities in Germany, and Korean companies can raise growth capital from investors in Germany.
This simplified example of the network effect, played out across many platforms and countries, creates previously unseen access to vast amounts of growth capital, and previously unseen access to a vast catalog of investment opportunities from around the world.
It also creates a complex web of transactions across multiple currencies in all directions, presenting unique challenges and requiring an innovative approach to cross currency, cross market payments.
The Role of Cryptocurrency in Dacxi Chain’s Vision
Cryptocurrency plays a central role in Dacxi Chain’s mission to revolutionize global equity crowdfunding. With its ability to facilitate fast, efficient, and cost-effective transfers of funds between different local currencies, cryptocurrency offers an ideal solution to the challenges posed by cross-border transactions.
However, not all cryptocurrencies are suitable for this purpose. Fiat currencies are slow and expensive, Bitcoin is not a long term viable payment currency, and stablecoins face regulatory hurdles and accessibility challenges. This is where Dacxi Coin, the native coin of the Dacxi Chain ecosystem, comes into play.
The Advantages of Dacxi Coin
With a native coin, the Dacxi Chain platform can control the method, timeliness, and fees associated with transferring funds around the world. Instant transfers protect both investors and companies from fluctuations in coin value, ensuring a secure and stable investment experience.
As the Dacxi Chain network grows and attracts more users, the liquidity of Dacxi Coin will also increase. This, in turn, will draw more traders to the coin, contributing to demand and positioning Dacxi Coin as an attractive investment opportunity. In essence, Dacxi Coin is central to the success of the Dacxi Chain solution, playing a pivotal role in revolutionizing global equity crowdfunding.
Why Fiat Currencies Fall Short
Fiat currencies, while the traditional choice for cross-border transactions, are simply not up to the task when it comes to facilitating the kind of seamless, interconnected investment experience that Dacxi Chain requires. These currencies are slow to transfer and via established banking and payment rails, attract exorbitant fees, making them an impractical choice for a platform like Dacxi Chain which relies on speed and efficiency to deliver its services.
The Limitations of Bitcoin and Stablecoins
While Bitcoin has earned its place as a valuable store of wealth, it falls short as a payment currency. With high transaction fees and limited accessibility, Bitcoin simply isn’t a practical choice for a global equity crowdfunding platform like Dacxi Chain.
Stablecoins, on the other hand, offer more liquidity and are an improvement over Bitcoin in terms of transaction fees. However, they still face significant regulatory headwinds, with authorities in various markets applying increasing scrutiny. Moreover, major exchanges promoting their own stablecoins have started to block other competitors, further exacerbating the accessibility challenges for everyday investors.
Conclusion: The Future of Global Equity Crowdfunding with Dacxi Chain
Dacxi Chain represents a new era in the world of equity crowdfunding, leveraging the power of cryptocurrency to create a truly global, interconnected investment ecosystem. By harnessing the potential of its native coin, Dacxi Coin, the platform is poised to overcome the limitations of traditional financial systems and revolutionize the way businesses and investors connect.
As the network expands, so too will the liquidity and demand for Dacxi Coin, further cementing its place as an integral component of the Dacxi Chain solution. With its innovative approach, Dacxi Chain is set to democratize access to investment opportunities, opening up new horizons for both investors and growth companies alike.
The future of global equity crowdfunding is here, and Dacxi Chain is leading the charge. Through the power of cryptocurrency and the ingenuity of its platform, Dacxi Chain is poised to reshape the investment landscape and usher in a new era of financial inclusivity and opportunity. Don’t miss your chance to be part of this groundbreaking revolution – join the Dacxi Chain community today, and experience the future of equity crowdfunding for yourself.
CrowdFunded Giants: Crafting Success with BrewDog – A Tale of Craft Beer Revolution
The Power of Equity Crowdfunding
Welcome to the CrowdFunded Giants series, where we shine a light on the remarkable journeys of successful crowdfunded companies. In our inaugural episode, we raise a glass to the phenomenal success story of BrewDog, a trailblazing craft beer company that leveraged the power of equity crowdfunding to revolutionize the industry and achieve international stardom.
BrewDog: A Crowdfunded Craft Beer Empire’s Remarkable Journey
From humble beginnings in 2007, BrewDog, founded by James Watt and Martin Dickie from Scotland, embarked on a mission to bring fresh flavours and a passion for quality beer to the masses. Their meteoric rise to global prominence can be attributed to a combination of dedication, innovation, and an unwavering commitment to their vision.
Equity for Punks
A game-changer in the world of funding, BrewDog launched its first crowdfunding campaign, “Equity for Punks,” in 2009. The goal was to raise capital to expand production and distribution while preserving their independence from traditional investors. This groundbreaking approach struck a chord with the public, attracting thousands of investors eager to be part of a company that dared to challenge the status quo in the craft beer industry.
“Equity for Punks” turned out to be an astounding success, raising £750,000 from more than 1,300 investors. This achievement paved the way for four additional rounds, collectively amassing over £74 million from over 100,000 investors worldwide. These funds enabled BrewDog to scale its operations, open bars globally, construct a state-of-the-art brewery in the United States, and even launch a television network dedicated to craft beer.
Investors who backed BrewDog during its equity crowdfunding campaigns in 2017 saw impressive returns on their investments. The company’s Equity for Punks IV campaign raised over £26 million from 50,000 investors, with a minimum investment of just £25. By 2019, the value of the company had doubled, with the company’s founders James Watt and Martin Dickie announcing that investors who had backed the 2017 campaign would see returns of up to 2,800% on their initial investment.
Fostering a Loyal Community
The crowdfunding campaigns didn’t just provide BrewDog with the necessary capital to grow but also fostered a strong sense of community among its investors. The company’s loyal fan base has been instrumental in driving its success, as they act as brand ambassadors, spreading the word about BrewDog’s products and ethos.
Embracing Transparency and Sustainability
BrewDog’s commitment to transparency and sustainability has further endeared it to its customers and investors. The company has implemented various eco-friendly initiatives, such as using renewable energy to power its breweries, repurposing waste products, and purchasing an area of land in Scotland to create a BrewDog forest for carbon offsetting purposes.
While BrewDog’s rapid expansion has not been without its challenges, the company has taken them in stride, using them as opportunities to learn, grow, and improve its business practices. Despite facing scrutiny and criticism regarding its marketing tactics, corporate culture, and environmental impact, BrewDog has maintained its commitment to transparency and sustainability.
Inspiring a New Generation of Craft Beer Enthusiasts
One of the key takeaways from BrewDog’s remarkable success story is that equity crowdfunding can be a game-changer for startups. By harnessing the power of the crowd, BrewDog was able to maintain its independence, foster a loyal community, and secure the necessary capital to fuel its rapid expansion. This approach has allowed the company to disrupt the beer industry and inspire a new generation of craft beer enthusiasts.
China: The Next Frontier for BrewDog’s Expansion
Looking towards the future, BrewDog has set its sights on China as the next frontier in its global expansion plans. In 2023, the company announced a joint venture with Budweiser China to produce its flagship craft beer, Punk IPA, at the Putian Craft Brewery in Fujian province. The beers will be sold through Budweiser China’s sales and distribution network, providing BrewDog with a strong foothold in the Chinese market.
The move into China is a significant step for BrewDog, as it marks a continuation of the company’s mission to disrupt the beer industry and drive growth through innovative strategies. With plans to open several new bars in China and tap into the country’s burgeoning craft beer scene, BrewDog is poised for further success and expansion.
Final Thoughts: The Potential of Equity Crowdfunding
BrewDog’s remarkable success story serves as a testament to the power of equity crowdfunding and the potential it holds for startups and established businesses alike. By leveraging the power of the crowd, BrewDog was able to maintain its independence, foster a loyal community, and secure the necessary capital to fuel its rapid expansion. With its expansion plans into China, BrewDog is poised to continue disrupting the industry and inspiring a new generation of craft beer enthusiasts. The company’s commitment to transparency, sustainability, and community-building is a shining example of what can be achieved through innovative financing methods and a passion for quality products.
Are you interested in learning more about equity crowdfunding and its potential to help businesses like BrewDog thrive? The Dacxi Chain and its global equity crowdfunding network are revolutionizing the way businesses connect with investors. Visit dacxichain.com to discover how you can be part of this exciting new world of global crowdfunding and help shape the future of innovative enterprises.
Join the Dacxi Chain Revolution Today – Visit dacxichain.com!
Navigating the Post-Banking Crisis Landscape: Dacxi Chain's Global Crowdfunding Solution for Tech Startups
The collapse of Silicon Valley Bank (SVB) was a monumental event that sent shockwaves through the global economy. This devastating financial catastrophe, the largest since the 2008 global financial crisis, left thousands of tech startups in limbo. With many startups relying on the bank for early-stage funding through SVB Venture loans the collapse has undoubtedly made it harder for these young companies to secure the capital they need to grow and succeed. In light of these challenges, some startups may be forced to merge or collapse, and the possibility of further banking collapses only exacerbates these problems. Amid this uncertainty, Dacxi Chain emerges as a powerful alternative financing solution. By leveraging a globally networked ecosystem of crowdfunding companies, the Dacxi Chain provides much-needed support for tech startups in these turbulent times.
The Current Funding Landscape for Startups
The collapse of SVB highlighted the vulnerabilities in traditional funding models for tech startups. Reliance on centralized institutions for early-stage financing can result in a domino effect of problems when these institutions falter. The impact of the SVB collapse has left many startups scrambling to secure funding, and the uncertainty surrounding the future stability of other banks creates additional challenges for tech companies seeking investment.
Ethan Kurzweil, a partner at Bessemer Venture Partners, shared his thoughts on the current startup funding environment via email. He acknowledged that SVB’s downfall leaves a “clear void” if the bank’s startup-focused services like venture debt are not maintained. However, he also pointed out that high-interest rates and a “pseudo-recessionary environment” for selling new products have a more direct impact on the funding landscape. (Yahoo Finance)
Furthermore, a recent survey by NFX revealed that over 60% of the 800 founders in their network are worried that SVB’s collapse will make the already challenging fundraising environment even tougher. This sentiment further emphasizes the need for alternative funding solutions to support startups during these uncertain times.
Moreover, the financial crisis has prompted a shift in investment strategies, with many investors turning to private equity as an alternative to stocks, bonds, and shares. This shift further underscores the need for innovative funding solutions that cater to both startups and investors.
Introducing the Dacxi Chain Solution
The Dacxi Chain offers a unique solution to the funding challenges faced by tech startups in the wake of the SVB collapse. By creating a globally networked ecosystem of crowdfunding companies, the Dacxi Chain enables startups to access alternative sources of financing, bypassing traditional banking institutions and their inherent risks. This groundbreaking approach empowers tech companies to raise capital from a diverse and global investor base, ensuring their continued growth and success despite the uncertain economic climate.
The timing of the Dacxi Chain’s emergence is crucial, as the current situation provides the perfect opportunity for the platform to showcase its innovative approach to crowdfunding. The financial turmoil has created a void in the startup funding landscape, and the Dacxi Chain is poised to fill that void by offering a reliable, efficient, and secure alternative to traditional financing methods.
A quote from Ian Lowe, the CEO of the Dacxi Chain, highlights the significance of this moment: “The collapse of Silicon Valley Bank has highlighted the risks of an overly centralized startup funding ecosystem, but it’s also created a unique opportunity for alternative financing solutions like the Dacxi Chain. We’re in the right place at the right time to help tech startups overcome these challenges and unlock their full potential.”
The Benefits of the Dacxi Chain’s Global Crowdfunding Ecosystem
The Dacxi Chain’s globally networked ecosystem of crowdfunding companies provides several key advantages for tech startups and investors alike:
Scale: By uniting the world’s investor bases, the Dacxi Chain creates an enormous global investor community that no single platform could hope to achieve. This ensures a sufficient number of investors with interest in every conceivable deal concept.
Decentralization: By leveraging a decentralized network of crowdfunding platforms, the Dacxi Chain reduces the risks associated with relying on a single, centralized institution for funding.
Diversification: The global reach of the Dacxi Chain allows startups to access a diverse range of investors, increasing their chances of securing the funding they need to succeed.
Flexibility: The Dacxi Chain’s ecosystem is adaptable and can accommodate a wide range of investment strategies, including private equity investments, making it an attractive option for investors seeking alternative investment opportunities.
Security: The Dacxi Chain blockchain employs advanced security measures to protect the investments and personal data of its users, ensuring a safe and secure environment for both startups and investors.
Closing Thoughts
The collapse of Silicon Valley Bank was a stark reminder of the fragility of traditional funding models for tech startups. With thousands of companies left in limbo and the potential for further banking collapses, the need for alternative financing solutions has never been more apparent. The Dacxi Chain, with its innovative approach to crowdfunding and globally networked ecosystem, presents a promising solution for tech startups seeking funding in these uncertain times.
By providing a decentralized, diverse, flexible, secure, and supportive platform for startups and investors, the Dacxi Chain is well-positioned to help companies overcome the challenges posed by the current financial landscape. As Ian Lowe, CEO of the Dacxi Chain, put it: “We’re in the right place at the right time to help tech startups overcome these challenges and unlock their full potential.”
As the global economy continues to evolve and adapt to the consequences of the SVB collapse, the Dacxi Chain stands as a beacon of hope for tech startups and investors alike. By embracing this innovative crowdfunding solution, startups can secure the funding they need to thrive, while investors can access new and exciting investment opportunities in the burgeoning world of private equity.
Is Equity Crowdfunding a Good Investment? Dacxi Chain's Transformative Potential
As the world of investment opportunities continues to evolve, equity crowdfunding is quickly gaining traction as an alternative investment vehicle. This innovative approach allows investors to contribute capital to early-stage companies in exchange for equity, allowing them to participate in the growth and success of these companies. In this article, we will discuss the merits of equity crowdfunding as an investment, and towards the end, we will explore the transformative potential of the Dacxi Chain Global Equity Crowdfunding Solution.
The Rise of Equity Crowdfunding
Equity crowdfunding has experienced tremendous growth in recent years, with the market’s value predicted to reach new heights. This surge in popularity is largely attributed to the democratization of investment opportunities, which has enabled everyday investors to access a previously exclusive domain of Venture Capital companies and their institutional backers. By investing in startups and small businesses, individuals can now play a more active role in nurturing innovation, job creation, and economic development.
The Benefits of Equity Crowdfunding
- Access High-Growth Potential: The allure of hyper-growth. Investing in early-stage companies presents the exhilarating chance to participate in a startup’s hyper-growth journey. When these ventures succeed and expand rapidly, the return on investment can be extraordinary, igniting the passion of investors as they contribute to the development of groundbreaking ideas and thriving businesses.
- Diversification: Equity crowdfunding allows investors to diversify their portfolios by investing in a wide range of industries and sectors. This diversification can help mitigate risk, as it reduces the impact of poor-performing investments.
- Supporting Innovation and entrepreneurship: Equity crowdfunding enables investors to contribute to the growth and success of innovative ideas and businesses. By backing new ventures, investors help foster a vibrant entrepreneurial ecosystem.
- Democratization of Investment Opportunities: Equity crowdfunding has opened the doors for everyday investors to participate in the world of startups, allowing them to invest in companies at various stages of development.
The Risks of Equity Crowdfunding and Its Market Share Challenge
As with any investment, equity crowdfunding comes with its share of risks. Potential investors should be aware of the following:
- High failure rate: Startups and early-stage companies inherently carry a higher risk of failure, which could result in the total loss of an investment.
- Limited information: Compared to publicly traded companies, private businesses may not provide as much information, making it more challenging to assess their potential.
- Illiquidity: Unlike publicly traded stocks, investments in private companies are generally illiquid, making it difficult to sell shares and realize gains.
These risks contribute to the primary reason equity crowdfunding holds only a one percent market share in early-stage innovation funding compared to venture capital: the challenge of achieving scale. Attracting a sizable crowd of investors to this sector has proven difficult, and crowdfunding remains largely localized in entrepreneurial hubs like California, New York, London, and Berlin. The vast majority of the world, home to 90 million potential investors, has yet to embrace this new sector. As a result, the industry has struggled to gain national or global traction, inhibiting its growth and impact.
Dacxi Chain Global Equity Crowdfunding Solution: A Transformative Landscape
In light of the risks and challenges associated with equity crowdfunding, the Dacxi Chain Global Equity Crowdfunding Solution aims to revolutionize the landscape. By leveraging blockchain technology, the Dacxi Chain solves the scale problem and creates a global crowdfunding solution akin to how the internet eliminated distance as a factor for accessing information.
The Dacxi Chain is a network of local crowdfunding companies where deals are tokenized on the blockchain and shared globally. Payments are made locally and then transferred globally using the Dacxi Coin, the native currency of the Dacxi Chain. This approach fosters transparency, security, and efficiency, addressing the challenges facing investors and businesses alike.
With its blockchain foundation, the Dacxi Chain ensures that transactions and records are secure, tamper-proof, and easily accessible. This increased transparency allows investors to make better-informed decisions, while businesses benefit from improved trust and credibility.
The platform also streamlines the investment process, making it more efficient and cost-effective for both investors and businesses. Through smart contracts, the Dacxi Chain automates many aspects of the investment process, reducing the administrative burden and lowering barriers to entry for investors.
Furthermore, the Dacxi Chain facilitates secondary market trading, addressing the issue of illiquidity often faced in equity crowdfunding investments. By providing a platform for investors to trade their shares, the Dacxi Chain enhances liquidity and enables investors to better manage their portfolios.
Final Thoughts
Equity crowdfunding presents a unique and exciting investment opportunity, enabling investors to participate in the growth and success of early-stage companies. While there are inherent risks associated with investing in startups, the potential for high returns and the opportunity to support innovation make it an attractive proposition for many.
The Dacxi Chain Global Equity Crowdfunding Solution aims to transform the landscape by addressing some of the challenges faced by investors and businesses in this space. With its focus on scaling, transparency, security, and efficiency, the Dacxi Chain is poised to usher in a new era for equity crowdfunding, making it an even more viable and attractive investment option.
In conclusion, while equity crowdfunding may not be suitable for every investor, its potential for high returns, diversification, and support of innovation make it a compelling addition to a well-balanced investment portfolio. As solutions like the Dacxi Chain continue to improve the equity crowdfunding experience, we can expect this form of investment to gain even more traction in the coming years.
The Future of Equity Crowdfunding: Decentralized, Blockchain and AI
In this blog, we discuss how equity crowdfunding has grown rapidly since the passage of the JOBS Act in 2012, with platforms attracting billions of dollars in investments. Looking ahead, the future of equity crowdfunding is likely to be shaped by three key trends: decentralization, blockchain, and artificial intelligence.
Equity crowdfunding, the practice of raising capital by soliciting small investments from a large number of people, has come a long way in the key USA market since product crowdfunding first gained popularity in the mid-2000s. Initially, crowdfunding was largely limited to product, donations or rewards-based campaigns, but with the passage of the JOBS Act in 2012, equity crowdfunding was legalized in the United States.
But equity crowdfunding is not just about democratizing access to capital. It’s also about leveraging emerging technologies like blockchain and artificial intelligence to create a new global investment opportunity for the public. An opportunity that will allow investors to get in on the deals that previously only Venture Capital companies and their big money backers have accessed.
The early days of equity crowdfunding
The origins of crowdfunding can be traced back to the early 2000s, when platforms like ArtistShare and SellaBand were launched to help artists and musicians raise money from fans in exchange for a share of future profits. In 2006, Kiva, a platform for microlending to entrepreneurs in developing countries, was launched, paving the way for a new generation of crowdfunding platforms focused on social impact.
Around the same time, product crowdfunding platforms like Kickstarter and Indiegogo emerged, enabling entrepreneurs and creatives to raise money from a large number of small investments in exchange for new innovative products or projects like films. These platforms proved hugely popular, with Kickstarter alone raising over $5 billion since its launch in 2009.
However, it wasn’t until the passage of the JOBS Act in 2012 that equity crowdfunding as we know it today became legal in the United States. The JOBS Act allowed companies to raise up to $1 million in capital through crowdfunding, paving the way for the launch of platforms like SeedInvest, Crowdfunder, and WeFunder.
The rise of equity crowdfunding
Since the passage of the JOBS Act, equity crowdfunding has grown rapidly, with platforms attracting billions of dollars in investments. In 2018, the equity crowdfunding market in the US was valued at over $1 billion. Despite the challenges brought on by the Covid-19 pandemic, the industry experienced a surge in growth, with new platforms, partnerships, and campaigns emerging daily. Looking ahead, the crowdfunding market is predicted to expand aggressively over the next few years powered by new excitement in the sector and new blockchain-powered global crowdfunding.
One of the key drivers of this growth has been the democratization of access to capital. Prior to the rise of equity crowdfunding, startups and small businesses had limited options for raising capital, often relying on traditional sources like bank loans or venture capital firms. Equity crowdfunding has changed this, enabling entrepreneurs to tap into a vast pool of potential investors and raise capital more quickly and efficiently than ever before.
Another factor driving the growth of equity crowdfunding has been the increasing importance of social impact and sustainability. Many investors today are looking for more than just financial returns – they want to support companies that are making a positive impact on the world. Equity crowdfunding platforms like StartEngine and Republic have capitalized on this trend, offering investors the opportunity to support companies focused on social impact and sustainability.
The future of equity crowdfunding
Looking ahead, the future of equity crowdfunding is likely to be shaped by three key trends: decentralization, blockchain, and artificial intelligence.
Decentralization
One of the main criticisms of traditional finance is that it is too centralized, with a small number of large institutions controlling the flow of capital. Equity crowdfunding has already gone some way towards addressing this issue, but the industry is still dominated by a handful of large platforms.
In the future, we can expect to see a more decentralized ecosystem, with smaller platforms and even individual investors playing a greater role in the funding process. This will be facilitated by the emergence of decentralized finance (DeFi) platforms, which use blockchain technology to create a more open, transparent, and accessible financial system.
Blockchain
Blockchain technology has the potential to revolutionize the equity crowdfunding industry by overcoming the scaling issue that limits the investor base that deals are offered to. By tokenising company shares on the blockchain, the ability to buy, own and sell what were previously illiquid assets can be transformed.
The greatest revolution in the investment business is that a system based on blockchain technology can become global, with deals offered to a global investor community. Payments can be secured through cryptocurrency, and ownership secured by blockchain. The impact on investment opportunities will be as revolutionary as the Internet has been for knowledge–there are no geographical limitations.
Blockchain will also improve the security and transparency of the investment process. By using smart contracts, investors could be assured that their funds are only released to the company when certain conditions are met, such as reaching a certain funding goal or meeting certain milestones.
Artificial Intelligence
Finally, the use of artificial intelligence (AI) is likely to play a significant role in the future of equity crowdfunding. AI could be used to improve the efficiency of the investment process, for example by automating the due diligence process or by using algorithms to match investors with suitable investment opportunities.
AI could also help to reduce the risk of fraud and improve the accuracy of investment decisions. By analyzing vast amounts of data, AI could help investors to identify high-potential investment opportunities and avoid potential scams.
Final thoughts
Equity crowdfunding has come a long way from its roots as a niche fundraising model for artists and musicians. Today, it is a rapidly growing industry that is democratizing access to capital and empowering entrepreneurs to bring their ideas to fruition.
As we look ahead, it is clear that the future of equity crowdfunding will be shaped by decentralization, blockchain, and artificial intelligence. These technologies hold enormous potential to create a more transparent, efficient, and secure financial ecosystem that benefits both investors and companies alike.
The Dacxi Chain, with its global crowdfunding network, is well-positioned to lead the way in this new era of equity crowdfunding. By leveraging blockchain and AI technologies, the platform provides investors and companies with a secure and transparent crowdfunding experience. With its commitment to creating a sustainable, equitable, and inclusive financial system, Dacxi Chain is poised to be a key player in the continued growth and evolution of equity crowdfunding.
As the industry evolves, it will be crucial for regulators to strike a balance between encouraging innovation and safeguarding investors from potential risks. Ultimately, the success of equity crowdfunding will depend on its ability to create a robust and equitable financial system that benefits all stakeholders – entrepreneurs, investors and crowdfunding companies alike.
Democratizing Investment: How Dacxi Chain is Empowering Global Crowdfunding
Discover how Dacxi Chain is leveraging blockchain technology to democratize investment and revolutionize global crowdfunding, providing a decentralized, secure, and accessible platform for individuals and businesses from all over the world.
Crowdfunding has become an increasingly popular way for businesses to raise funds, and with the rise of blockchain technology, it has become even more accessible and efficient. The emergence of blockchain technology has brought about significant changes in the way crowdfunding is done, making it more accessible, efficient, and secure. One company that has been at the forefront of this development is Dacxi Chain, a blockchain-enabled platform that aims to revolutionize global crowdfunding.
Democratizing Investment with Dacxi Chain
The role of the Dacxi Chain in global crowdfunding is multifaceted. The platform leverages the inherent qualities of blockchain technology to address some of the most pressing challenges facing the crowdfunding industry, including scalability, security, and transparency. By providing a decentralized, trustless platform that is accessible to everyone, the Dacxi Chain is empowering individuals and businesses from all over the world to participate in crowdfunding, regardless of their location, background, or financial status.
Solving the Scalability Issue with Blockchain Network Effect
One of the key advantages of the Dacxi Chain is its ability to solve the issue of scalability through the network effect. Blockchain technology enables the creation of a global, decentralized network that can process a large volume of transactions without the need for intermediaries. This means that the Dacxi Chain can handle a massive number of crowdfunding transactions simultaneously, without compromising on speed, security, or efficiency.
Embedding Smart Contracts for Automated and Transparent Transactions
Another advantage of the Dacxi Chain is its ability to embed smart contracts into transactions. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This technology enables the automation of complex crowdfunding transactions, such as the distribution of profits and the management of shareholder rights. By embedding smart contracts into transactions, the Dacxi Chain ensures that all parties involved in the crowdfunding process have access to transparent and immutable records of the transaction, which reduces the likelihood of fraud and other malicious activities.
Borderless Platform: Promoting Diversity and Inclusion in Crowdfunding
Furthermore, the Dacxi Chain leverages the power of blockchain to create a borderless platform that is accessible to anyone with an internet connection. This means that investors and businesses from all over the world can participate in crowdfunding without the need for intermediaries or the limitations imposed by traditional financial systems. As a result, the Dacxi Chain provides a level playing field for all participants, regardless of their location or financial status, which is crucial for promoting innovation, diversity, and inclusion in the crowdfunding ecosystem.
High Level of Security and Privacy with Blockchain Technology
In addition to these advantages, the Dacxi Chain also provides a high level of security and privacy. Blockchain technology ensures that all transactions are encrypted and stored on a decentralized ledger, which makes it virtually impossible for hackers or other malicious actors to tamper with the data. This means that investors can have peace of mind knowing that their investments are secure and protected from fraud or other malicious activities.
Ian Lowe CEO Dacxi on Blockchain: The Defining Moment for Crowdfunding
“We get to a point where blockchain not only could be the game changer for crowdfunding, blockchain is the game changer. It completely reimagines what’s possible through crowdfunding for all participants. And that reimagining is much more in line with, I think, what the world expected crowdfunding could become over a decade ago. So blockchain really is the defining moment for crowdfunding.”
Final Thoughts: Dacxi Chain Paving the Way for a More Equitable Financial System
The Dacxi Chain is truly democratizing investment and empowering global crowdfunding. It is challenging traditional financial institutions by providing a decentralized, trustless platform accessible to everyone. With the ability to embed smart contracts into transactions, handle a large volume of transactions simultaneously, and provide a high level of security and privacy, the Dacxi Chain is redefining the way crowdfunding is done globally. The potential impact of blockchain technology on the global financial system cannot be overstated, and the Dacxi Chain is at the forefront of this transformation. By pioneering the opportunity that blockchain presents for crowdfunding, the Dacxi Chain is paving the way for a more transparent, efficient, and equitable financial system that benefits everyone. As Ian Lowe said, “Blockchain not only could be the game changer for crowdfunding, blockchain is the game changer.” The Dacxi Chain is leading the way in this new era of democratization in finance.
7 Reasons You Should Own Dacxi Coin
This blog outlines how Dacxi Coin (DACXI) serves a specific purpose within the Dacxi Chain ecosystem, facilitating efficient and low-cost transactions for investors worldwide and positioned to play a significant role in the estimated $1 trillion tokenized equity crowdfunding market by 2030, making it a viable investment opportunity with a large potential market and expected growth in demand, all while still being a relatively low-profile coin in its early stages of deployment.
Since its inception in 2018, the Dacxi Chain has been working on developing the world’s first global crowdfunding network, powered by its utility token, Dacxi Coin (DACXI). Dacxi Chain aims to bridge the gap between early-stage investors from all over the world and entrepreneurs in need of funding to grow their businesses. As the currency of the Dacxi Chain, DACXI plays a vital role in facilitating seamless and secure transactions on this innovative blockchain-enabled platform.
Here are seven reasons why DACXI should be on your radar:
1. Viable Use case:
Dacxi Coin is the cryptocurrency of an ecosystem with a viable use case. Unlike many other cryptocurrencies, which lack a clear use case or real-world application, Dacxi Coin serves a specific purpose within the Dacxi Chain ecosystem. As the currency used for investment transfers and tokenized equity share exchanges, DACXI facilitates efficient and low-cost transactions for investors worldwide.
2. Large Potential Market:
The potential market for the Dacxi Chain and therefore use of Dacxi Coin on the network is large. According to IBM Blockchain, tokenized equity crowdfunding is estimated to be worth at least $1 trillion by 2030. As the cryptocurrency of the Dacxi Chain, DACXI is positioned to play a significant role in this growing market.
3. Growing demand:
Demand for Dacxi Coin is projected to be in the billions once the Dacxi Chain is in full operation. With the Dacxi Chain still in the early stages of its worldwide deployment, there is ample room for growth in demand for DACXI. As more investors discover the benefits of equity crowdfunding on the Dacxi Chain, the value of DACXI is expected to rise.
4. Liquidity to venture funding:
The Dacxi Chain introduces liquidity to venture funding. Traditionally, investing in early-stage ventures has been challenging due to a lack of liquidity. However, with the introduction of the Dacxi Chain and DACXI, investors can now buy and sell their tokens on Dacxi Coin exchanges, providing much-needed liquidity to the venture funding market.
5. Experienced Leadership Team:
The leadership team comes from the digital and financial product business community rather than being developer-centric. Rather than being developer-centric, the team has a background in digital and financial product businesses, providing a strong foundation for the growth and development of the Dacxi Chain ecosystem.
6. Relatively low-profile coin:
The Dacxi Coin is still a relatively low-profile coin, which is keeping a lid on its current value. Despite its potential and growing demand, DACXI is still a relatively low-profile coin. This means that there is an opportunity for investors to acquire DACXI at a lower price point than other more established cryptocurrencies.
7. Early stages of deployment:
The Dacxi Chain is in the early stages of its worldwide deployment. As the Dacxi Chain continues its global deployment, there is significant potential for growth in demand for DACXI. As more investors discover the benefits of equity crowdfunding on the Dacxi Chain, the value of DACXI is expected to rise.
If you’re interested in owning Dacxi Coin, you’ll be pleased to know that it’s available on several cryptocurrency exchanges, including HitBTC, BitForex, CONSBIT, and the Wealth99 Platform. Investing in DACXI offers you the chance to be part of an ecosystem with a viable use case, a large potential market, and a leadership team with extensive experience in the digital and financial product business community.
To benefit from the potential growth of DACXI, head over to one of these exchanges today.
