Tokenization of Assets: 10 Tips for Successful Tokenization
In times like these, marked by high inflation and financial crisis, more and more people feel uncertain. The additional devaluation of money makes it harder to raise capital without losses. It is therefore no surprise that many people are looking for ways to invest money and secure capital.
Properties remain particularly popular as they are still considered a safe investment. Other assets such as vehicles, plots of land, etc. are also favoured investments. One problem, however, remains: high interest rates and inflation. Cryptocurrency offers an alternative here. Through the tokenization of assets you can buy or sell assets while precisely determining the share. It is easy to buy or sell just fractions of assets – for example by keeping 80 % of the tokens for yourself and marketing the remaining 20 %.
In this article you will learn, with our ten expert tips, how to tokenize your assets successfully and what to watch out for in order to avoid complications.
Inhaltsverzeichnis
- 1 Tokenization of Assets: 10 Tips for Successful Tokenization
- 1.1 Examples of Well-Known Cryptocurrencies and Tokens
- 1.2 Digital Tokenization of Assets: The Essentials in Brief
- 1.3 What Exactly Is the Tokenization of Assets Using Blockchain Technology?
- 1.4 What Is Required for the Tokenization of Securities and Assets?
- 1.5 10 Tips for the Successful Tokenization of Your Assets
- 1.5.1 Tip 1: Develop a Well-Thought-Out Concept
- 1.5.2 Tip 2: Build Financial Reserves and Security
- 1.5.3 Tip 3: Find a Professional Partner for Tokenization
- 1.5.4 Tip 4: Market Overview – Conduct a Market and Competitor Analysis
- 1.5.5 Tip 5: Inform Yourself About Alternatives and Options
- 1.5.6 Tip 6: Find Reputable Partners or Investors for Tokenization
- 1.5.7 Tip 7: Legal Advice and Support for Asset Tokenization
- 1.5.8 Tip 8: Invest Part of the Capital Safely
- 1.5.9 Tip 9: Familiarize Yourself with the Conditions of Tokenization
- 1.5.10 Tip 10: Marketing and PR
- 1.6 Conclusion and Summary
- 1.7 Free Consultation
- 1.8 Further Articles
| Tokenisierung von Vermögenswerten – Übersicht | |
| ⭐ Vorgabe: | Tokenisierung von Vermögenswerten |
| 🏆 Dauer: | Ca. 3 Monate |
| 💰 Kosten: | Projektspezifisch |
| 📺 Zielsetzung: | Vermögenswerten in handelbaren Bruchstücke (Tokens) zerlegen |
| ⚡ Technologien und Kenntnisse: | Token, Blockchain (Ethereum), Smart Contracts |
Examples of Well-Known Cryptocurrencies and Tokens
| Bekannte Kryptowährungen und Token | |
| Coin | Beschreibung |
| Bitcoin | Das Urgestein und der Vorreiter unter den Kryptowährungen. |
| Ethereum | ERC-20 Blockchain, größter Bitcoin Konkurrent. |
| Monero | Sehr bekanntes Open-Source-Projekt mit vielen Optionen. |
| Neo | Ein bekannter Altcoin mit einem interessanten Projekt. |
| Ripple | Ein bekannter und recht günstiger Altcoin. |
Digital Tokenization of Assets: The Essentials in Brief
Tokenization means assigning an item or object a counter-value in cryptocurrency. Much like receiving a specific number or value of shares for a property, you receive a defined amount of tokens. Tokenization opens new opportunities for capital investment and fundraising. The advantage is that you can specify exactly what portion of tokens you wish to sell. Transactions are transparent and, thanks to blockchain and crypto technology, secure and trustworthy.
What Exactly Is the Tokenization of Assets Using Blockchain Technology?
Tokenization refers to assigning a value in cryptocurrency to an object, an item or a service. If you own a car or a motorbike, for example, you can assign it a value of 1,000 Ethereum coins in a tokenization. You can then sell these tokens – and thus shares in your vehicle – in any quantity you choose. You might sell 250 tokens (25 %) or only 50 tokens. Equally, you can buy tokens yourself and thereby acquire shares in assets.
The tokenization of assets is therefore a flexible way for you to invest or raise capital. You do not have to sell your assets, but can restrict yourself to selling shares. You can later increase these shares or buy them back. If you find that 25 % is not enough, you can raise the tokens to 50 %. At the same time you can later buy back, for example, 20 % of the tokens or even the entire stake, provided this is defined in the contract. All of this happens with the security of smart contracts and blockchain technology.
What Is Required for the Tokenization of Securities and Assets?
Tokenizing your assets requires no special knowledge and only a few prerequisites. First, determine the value of each asset and set an equivalent in tokens. Then select a blockchain and cryptocurrency that support tokenization. Ideally this will be a blockchain that can use smart contracts, making transactions both simple and extremely secure. Afterwards you can issue the desired number of tokens on the market and simply wait for a buyer. You might stipulate that a buyer must purchase the full share – for example the entire 25 % – or set a minimum so that several investors can participate. Two investors could each buy ten per cent and one investor five per cent, for instance.
In return for buying the shares, the purchasers become owners, co-owners or partners in your assets. This does not necessarily grant them usage rights. If they are silent partners, you can continue using the assets – such as driving a car – as normal. However, you must consult the co-owners before selling the assets or making changes. Silent partners may also be exempt from maintenance and repair costs. All the details are agreed contractually in advance. The aim of tokenization is to raise additional capital in a finely tuned, uncomplicated way.
10 Tips for the Successful Tokenization of Your Assets
You now know what tokenization is and what benefits it may offer. But you are not the only person considering asset tokenization to increase capital; many thousands share the same goal. How can you succeed and raise funds? Our experts have explored this question.
In this section we share ten expert tips to help you implement tokenization successfully and secure the capital you need.
Tip 1: Develop a Well-Thought-Out Concept
Before starting tokenization, you need a solid concept. Many consider this unnecessary, believing it’s merely about selling a number of tokens for money. It isn’t that simple. You must decide which assets to tokenize and define the duration and conditions. You also need to consider how you will reclaim your assets and whether you can forgo them temporarily. Tokenization brings capital but also limitations that you need to know. Marketing Faktor, a leading agency in the D-A-CH region, can help – just contact us with no obligation.
Tip 2: Build Financial Reserves and Security
The goal of tokenizing assets is to raise capital, but caution is essential. If you later want your assets back, you must buy back the shares and possibly pay agreed fees. Repairs, conversions or renovations may also be due, and you usually have to bear these costs yourself.
Plan for all these factors in advance and sell only as many shares as you can repurchase. Also budget for unforeseen expenses. Otherwise you may have to tokenize further shares to cover the costs, which will require more capital for repurchase. Many investors also charge fees for buy-back, which you must pay. Think everything through carefully.
Tip 3: Find a Professional Partner for Tokenization
To succeed and maximize security, work with a knowledgeable partner who can advise and support you fully and understands the risks and specifics. Otherwise, especially if you’re inexperienced, you can quickly get into difficulties.
Marketing Faktor is one of the leading crypto agencies in the D-A-CH region. We have managed many projects and are happy to help plan and implement your asset tokenization. This guarantees no unpleasant surprises or unexpected problems. Contact us for a free initial consultation.
Tip 4: Market Overview – Conduct a Market and Competitor Analysis
Tokenization is personal: you have assets and want to tokenize them to raise capital. Often there are more assets than investors. You are not alone in offering assets. Therefore, see what already exists in the market, what doesn’t, and what prices and fees others charge.
Study the market and competitors in detail. Pay close attention to which coins or blockchains other projects choose and their pros and cons. Thorough research yields valuable insights for your own tokenization.
Tip 5: Inform Yourself About Alternatives and Options
For many asset owners, tokenization is a quick, easy route to capital. You don’t have to deal with banks, fulfil special requirements or meet their lending criteria. Tokenization seems simple – and it is – but first impressions can be deceptive. It is not always the best option.
Investors become silent partners who may have a say in future decisions and usually do not share costs. Even though you can continue to use your assets, there are restrictions. If you cannot buy the stake back, you lose your property. Issues also arise on death or if you become incapacitated: you cannot easily bequeath, sell or remodel without consent. Consider carefully whether tokenization is sensible or if other options suit better.
Tip 6: Find Reputable Partners or Investors for Tokenization
If you seek a partner or investor, scrutinize who you bring on board and under what conditions. Offers that seem too good to be true often hide clauses that disadvantage you.
Ensure partners have sufficient capital and are reputable, ideally with experience in the tokenization of real estate. Research online or consult Marketing Faktor for advice.
Tip 7: Legal Advice and Support for Asset Tokenization
If you have questions or uncertainties, consult a legal expert. All tokenization offers you consider should be reviewed by a specialist lawyer, who should also accompany contract signing. For real estate, always involve a notary. Together with the lawyer, the notary ensures legality, provides a valid contract and handles processes such as land-registry entries. Always use lawyer and notary services and avoid dubious practices.
Tip 8: Invest Part of the Capital Safely
Tokenizing assets often covers an urgent short-term need for capital. Although tokenization is fast and simple, do not invest all the capital immediately. Build reserves and invest or save part of it safely. You may need it later for buy-back or unforeseen repairs. Plan ahead so you are not forced into further tokenization.
Remember: tokenization means selling shares in your assets. If you want them back, you must raise the capital for repurchase, plus fees and other costs.
Tip 9: Familiarize Yourself with the Conditions of Tokenization
Tokenizing your assets makes another person a partner. Contractual terms govern use, buy-back etc. Investors are usually silent partners who pay their share and then do nothing further; they don’t fund repairs and you can continue using the assets.
However, silent partners still gain rights. If you rent out tokenized assets, partners are entitled to their share of income. Tokenizing 50 % of a car means handing over half of the rental income, while partners typically don’t pay running costs. You also cannot sell tokenized assets without their consent; they demand involvement, fees and their share of proceeds. The same applies to inheritance, gifting or permitting family use.
Avoid trouble by studying the contract terms thoroughly in advance and seeking advice from a specialist lawyer and notary.
Tip 10: Marketing and PR
If you intend to tokenize several assets or operate professionally, launch a marketing and PR campaign. This helps you attract potential investors. Ideally, you will have several interested parties and can choose the best offer, giving you flexibility and avoiding pressure to accept a poor one.
You are under no obligation to accept any investor. Examine each offer carefully and decline if necessary—even if it is the only one. It is your property and your required capital; sometimes waiting for a better offer is wiser than acting too quickly and regretting it later!
Conclusion and Summary
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