Determine Business and Token Financial Model
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Business Model
type of token
investor engagement reasoning
up-side
Type of Offering (continuous)
Types
Whether the types match regulatory offerings
Exit strategy
The asset being tokenized is typically embedded within an income-generating process that makes an asset valuable. For example, real estate is part of a rental business or a vessel is a key asset in a shipping operation. Token offered to investors usually provide exposure to the business based on the underlying asset rather an asset directly. Correspondingly, the token structuring process should consider the commercial characteristics of the asset.
Exit strategy
Token repurchase from ongoing revenues
Token repurchase from asset/business sale
Secondary trading
This information is relevant for future regulatory considerations, as it determines the applicable regulations.
Data points:
Business plan
Financial model/projections