Categories: CryptoNews

PayperEx – First Alternative Stock Market For Private Companies Based on Bitcoin Blockchain

Through the utilization of the Ethereum network’s immutable blockchain and transparent smart contracts-based ecosystem for decentralized applications, developers of PayperEx have built an alternative stock market for private companies within the cryptocurrency sector.

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Over the past two years, the initial coin offering (ICO) market has demonstrated an exponential growth rate, allowing individual investors and non-accredited traders to fund startups and blockchain projects within the cryptocurrency sector. The ICO market has outgrown venture capital (VC) funding in the cryptocurrency industry, as startups secured more than $1.3 billion from individuals in 2017 alone.

The ICO market was able to gain such massive popularity and demand from general consumers because it eliminated the necessity of VC firms and accredited investors; it enabled anyone within the ecosystem and community to fund startups and hold equity in the projects.

Essentially, the development team behind PayperEx are attempting to achieve a similar goal to the ICO market by providing an efficient and robust platform in which non-accredited individual investors can fund private companies, like angel investors or VC firms. More importantly, through a tokenized economy based on its native token Payper, both investors and private companies can raise capital transparently, without complications, contract failures, or legal conflicts.

“Paypers are shares based units, same as in stock exchange you buy Paypers that based on financial assets e.g. Bitcoin, Ethereum, etc. There are two types of Paypers issued:”BULL” and “BEAR”. A BULL Payper is predicting that the price of the underlying asset will rise, whereas a BEAR Payper is predicting that the price of the underlying asset will fall,” explained the PayperEx team.

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Specifically, the PayperEx team emphasized that it intends to target regular individual investors rather than providing sufficient liquidity for large-scale institutional investors and traders, creating a simpler market and infrastructure for general consumers.

“While more and more people wants to take a part of the Crypto and share market, only few will get to benefit and make good profit out of it. It’s a much easier for institutions and brokers than for everyday people. Even big investment firms and brokers with the scale and financial ability, can’t always do it currently,” added the PayperEx team.

If startups like BnkToTheFuture have provided efficient infrastructures for accredited and large-scale investors to fund private companies in the cryptocurrency sector, PayperEx is targeting the opposite market in general consumers and everyday users. Through the PayperEx blockchain network and transparent fundraising platform, investors can easily fund highly potent private startups, and entrepreneurs can also secure funding from a distributed network of individual investors.

A key part of the PayperEx platform is expected to be its PAX token, which will serve as the network’s native token and the currency for funding startups.

“The PAX is Token (Coin) issued in order to let the crowd participate in the project and to become members at the networkֲ . Each activity in the PayperEx network is performed using PAX, making the token an integral part of the network and the driver of its economy,” explained the PayperEx team.

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The writer of this post is a guest. Opinions in the article are solely of the writer and do not reflect The Merkle's view.

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