Tokenization, in simple terms, refers to the process of representing ownership or rights to real-world assets as digital tokens on a blockchain or distributed ledger. Tokenization of real-world assets can range from tangible assets, such as real estate, art, and commodities, to intangible assets, like intellectual property. By doing so, we open up a plethora of benefits to those looking to tokenize their real-world asset.
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Some of the benefits that we can establish from the get-go are transparency, security, and efficiency, to traditional asset ownership and transfer. However, the real benefit that tokenization poses is allowing further liquidity on otherwise illiquid assets. Digitizing the transfer of ownership (tokenization) creates a streamlined process where one can immediately buy, sell, or trade these assets. But more importantly, it introduces fractionalization.
One of the key components that tokenization offers is the ability to fractionalize an asset’s rights and distribute this to a wider audience. By fractionalizing ownership, multitudes of investors can get a slice of the pie, or in this case the distribution. Typically in traditional finance, only accredited or private investors are allowed to get a hold of these private assets. But with the onset of tokenization, we are breaking down the traditional financial landscape by allowing your everyday investor to hop in and invest in your STO. Further increasing the value of your tokenized real-world asset.
To further understand this concept, let’s take a look at IX Swap’s token use case of the IXApe below.
IXApe tokens represent a groundbreaking approach to NFT ownership, particularly centered around Howey Tez's Bored Ape #2371 NFT from the exclusive Bored Ape Yacht Club (BAYC). In a bold move to democratize ownership and distribute the economic interest tied to this high-value digital asset, Howey Tez tokenized the NFT into 5,000 IXAPE tokens. Each IXAPE token embodies a share of profits from the Bored Ape #2371 NFT, allowing a broader audience to participate in the lucrative world of this blue chip NFT.
By fractionalizing the Howey Tez NFTs, IX Swap can further enhance your security token’s liquidity. Enabling retail users to buy, sell, and trade fractals of your digital asset.
Last November IX Swap launched the IXApe airdrop. A campaign where we provide dividend distribution based on the number of IXApe tokens the user was holding during the campaign period. And it is with much success that we’d like to announce that the campaign ended on a very positive note.
The IXApe token's price surged an astounding 1125% from its starting price to its all-time high, showcasing IX Swap’s commitment to solving the illiquidity issue for security tokens and real-world assets.
Liquidity pools play a crucial role in facilitating the exchange of assets on decentralized platforms. In the case of IXApe, the liquidity pool not only ensured smooth trading but also contributed significantly to the overall liquidity, increasing its value.
This token use case provides valuable insight into the capabilities that IX Swap can offer your emerging business. We’re opening doors for businesses and investors alike. For retail investors, this means you can partake in these assets without needing big capital, and through a simple KYC process. For businesses, this means access to a global retail market.