You Can Tokenize Almost Any Asset, But Should You?
Turning assets into digital tokens is getting easier. Making it pay off is the hard part.
Crypto's highly visible trading markets have created a misleading expectation for businesses seeking capital: tokenize an asset and the buyers will come.
A founder who owned several mining assets approached me with exactly that expectation. He wanted to know how quickly he could launch a token and start raising money. He assumed that demand for crypto would translate into demand for his mining assets.
But owning a token tied to a mining asset is a very different investment from holding Bitcoin or Ether. Investors would need to understand what the token entitled them to, the risks of the project and how they might earn a return. Those questions had to come before the launch.
I've had some version of that conversation with mining companies, commodity producers, fund managers and private businesses many times. As...
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