Swarm Fund, a blockchain for private equities, announced the launch of tokens, representing equity in certain companies. These tokens allow Swarm investors to purchase fractional shares in some of the biggest companies in the crypto space today, like Ripple, Didi, and Robinhood.
Swarm aims to create a unique market infrastructure by enabling the investing of cryptocurrencies into real-world assets, and also deploying traditional capital into the crypto world. Swarm makes traditionally exclusive investment opportunities, such as private equity and hedge funds, inclusive for the Swarm by pooling together smaller investments into larger, institutional-sized blocks.
The equity is not obtained directly from the companies themselves, but are obtained using secondary channels. Swarm is reported to have said that equity in these companies is sourced from “approved secondary market transactions to acquire vested employee shares, or from venture capitalists who have directly acquired equity from these companies”, referring to Swarm’s partners who have acquired equity from these companies directly. Swarm has said that they aim to tokenize $5-25 million worth of equity, per company, per year.
Philip Pieper, CEO, and Co-founder of Swarm says:
“Our goal is to democratize investing, and introducing tokens that represent equity is a major step forward in this mission. Now, any Swarm investor can hold equity in some of today’s most prominent tech startups.”
Timo Lehes, CIO, and Co-founder of Swarm explains:
“By offering a Ripple token representing equity in Ripple the company, Swarm Fund offers an answer to what some say is a limitation of Ripple’s XRP token as an investment. XRP is a top cryptocurrency, behind only Bitcoin and Ethereum in market cap, but it does not represent equity in Ripple or reflect the value of Ripple payment protocol. Investors looking for a more holistic piece of Ripple’s value may look to the Ripple Equity Token as a solution.”
While Swarm’s intent is to allow a wider community of investors to own equity in these companies, this does not mean just about anybody can buy these equity tokens. Only qualified investors who have passed the KYC/AML verification may participate, Swarm’s official page adds, saying they expect the sale of the tokens to begin within this month.
MOGS, on Twitter, said:
“Still confused most of us but I’ll just buy a few”
source: https://ambcrypto.com/ripple-didi-robinhood-shares-tokenized-swarn-funds-new-launch/