PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

As if NFTs Weren’t Sufficiently Indirect, Now They Are Fractionalized and Tokenized

By Tim Sloane
July 8, 2021
in Analysts Coverage, Cryptocurrency, Digital Assets & Crypto, Fraud & Security, Tokenization
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
As if NFT’s weren’t sufficiently indirect, now they are fractionalized and tokenized

As if NFT’s weren’t sufficiently indirect, now they are fractionalized and tokenized

The concept is that a business creates Non-Fungible Tokens (NFTs) that represent its assets such as its stock and products. Then the NFT is tokenized and fractionalized so that it can be more easily distributed and traded.

I expect the SEC will almost certainly make this difficult to implement in the U.S.  It is unclear if any NFT platform vets the provenance before issuing the NFT, but I doubt it. If the NFT represents a valuation of a company, what regulated agency determined that valuation?

If cryptocurrencies make you queasy because their value is based on market perception then NFTs that in theory represent physical items or some fraction of a business should have you running for the hills. This is not for the faint of heart. I wonder what regulated entity decided Genius Marketing is valued at $8 million:  

“Among the attracted partners is Genius Marketing – an EdTech company from Eastern Europe and the first company to tokenize its business using the Binaryx platform. Oles Timofeev, Founder and CEO of Genius Marketing, commented on the partnership:

“Tokenization will help us boost expansion and scale our business in the global market. Genius Marketing aims to be an international educational platform and onboard users worldwide. With tokenization, this process will be cost-efficient and prompt. As an EdTech company that provides online education, we want to be at the edge of innovations. That is why we rely a lot on our partnership with Binaryx.”

Genius Marketing offers entrepreneurs a variety of educational programs on digital marketing. The company has a preliminary valuation of around $8 million, with 10% of its shares slated for tokenization and subsequent sale. The estimated amount of investments to be attracted stands at $800,000 with a hard cap of $1 million.

A recent report by Deloitte states that tokenization could unlock trillions of euros in currently illiquid assets, transforming the financial space into a much faster, cheaper, and inclusive ecosystem. Transparency Market states that the tokenization market is set to grow to as much as $7 billion by 2026, while reports released at The World Economic Forum forecast that 10% of the world’s GDP, standing at $10 trillion, will be transformed into cryptographic assets within the next ten years.

In related news, OpenExO, a company founded by serial entrepreneur Salim Ismail, announced the launch of a platform dedicated to the tokenization of the global economy.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: CryptocurrenciesGenius MarketingGlobal EconomyNFTTokenization

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025
    payments hub, digital banking

    All in One: How a Payments Hub Eliminates the Pain Points

    June 5, 2025
    Vertical SaaS

    From Underdogs to Industry Leaders: How Vertical SaaS Powers Mid-Sized Firms

    June 4, 2025
    credit card surcharging

    A Perfectly Understandable Bad Idea: Why Merchants Should Reconsider Surcharging

    June 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result