Knowing the life cycle of a token is important for investment advisors, investors and other individuals working in the financial market. Today, tokens have become one of the most sought-after, bought and traded financial assets in Brazil and around the world. When you understand the life cycle of a token, you can know the best time to buy and sell, maximize profits and guarantee the best possible deal. However, it is essential to know that this time varies greatly between cryptos and digital assets in general, and understanding this concept means understanding these characteristics better.
Understanding the Life Cycle of a Token
Although the life cycle of a token varies greatly according to the type of financial asset, it still follows some important steps and structures. Every digital asset must respect the steps below, from DREX and other digital currencies to the Bitcoin ETF, the first crypto produced in the world. Understanding this life cycle is fundamental to ensuring the control and management of assets that offer the most profitability. This information is relevant both for companies looking to tokenize assets and for those looking to invest in the area.
Structuring
The first step in the life cycle of a token is its asset structuring, which begins with the choice of technology and all the resources that create its basis. One of the main resources used to create tokenized assets is blockchain technology, the basis behind most of the tokens on the market. Bitcoin, Ethereum ETF and other tokenized funds use blockchain, which brings a series of interesting benefits and properties to each of these tokens. Among the main ones are:
- Transparency;
- Security;
- Flexibility;
- Compatibility.
This structuring is very important because it is what will allow the token to be shared and used on other platforms. VASP or any company responsible for token generation and structuring must be reliable and work in accordance with the main regulatory bodies in Brazil.
Development
Once structured, the token must be developed to meet your needs. A token can have various objectives, such as generating working capital for a company, serving as a cryptocurrency or even generating an exclusive media unit. This last category includes NFTs and other media. Their development also depends on the platforms where these tokens will be traded and what kind of support they can receive. It is very important that the company responsible for developing the token pays attention to how it will be used and creates it especially to suit its target audience and market.
issue
Issuance is another important step for tokenized assets. Here you need to define a series of characteristics so that your fund can be marketed. Much of the success of a token depends on the processes and specifications that are created during its issuance. We can highlight some of these characteristics as:
- Interest rate;
- Offer size;
- Duration of tokenized assets;
- Offer and valuation procedures.
In general, these processes can also be customized over time. It is interesting to keep an eye on the evolution of the tokenization asset after it has been generated, to ensure greater control and increased profitability with the securities.
Management
Once the token has been issued, its management begins. During this period, the company that owns the asset or issued it must control its transactions, offer support and even facilitate negotiations. This is a very important point for the life of the token as a whole. To carry out this control, BLOCKBR’s Whitelabel tool has all the necessary resources to help you. BLOCKBR’s platform is specially designed to serve small and medium-sized companies – SMEs – and offer a secure method for them to raise funds and to tokenize their securities.
- It offers separate spaces for companies and investors;
- Complete for investment advisors;
- Platform that covers the entire life cycle of a token;
- Allows you to manage titles;
- It is possible to sign securities with digital documents.
All these functions and features can be found on Whitelabel, the perfect platform for those who want to manage the entire life cycle of a token. Companies from all over Brazil can raise capital and innovate through BLOCKBR, giving them total control of their tokenized funds.
Negotiation
The trading phase takes place after the asset has been issued, and this phase of a token’s life cycle can take place at the same time as its management, although it is also common for it to take place afterwards. As the name makes clear, it involves buying and selling tokenized assets and trading them in digital environments. At this stage of a token’s life cycle, BLOCKBR once again provides the necessary resources so that your company can carry out good negotiations and acquire capital with rapid liquidity. With our services you have the help you need to use technology for the good of your business.
Rescue
The end of a token’s life cycle is always its redemption. At this point, the value of the tokens is collected and the company can start making use of their value, since they are highly liquid assets. This token life cycle can often be repeated, and more tokenized assets can emerge and go through the same stages. This is a routine that can be established in the company and always generate more assets and profitability for its capital.
Join the Digital Revolution with BLOCKBR
For those who wish to participate and use technology in favor of their company, you can count on BLOCKBR. Our efforts are focused on offering your company the best that the world of tokenization has to offer, always with the expectation of generating a return on capital with rapid liquidity. Through our tools, such as Whitelabel, the entire life cycle of a token is monitored, and you can profit and invest without any major problems. BLOCKBR offers a secure, controlled and complete service so that you can manage your tokenized assets and take advantage of this incredible technology.
Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.
The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models. To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor. Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.
