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Blockchain technology, which powers cryptocurrencies, has been getting a lot of buzz recently. New startups have begun implementing this powerful technology into their everyday business models and investors are taking notice of the disruption potential it can bring to the venture capital industry.
Venture capital has been the go-to funding source for startups since the 1950s, but in the past decade, blockchain technology has been changing the way businesses are funded and managed.
The adoption of blockchain tech has brought about new venture capital methods, including Initial Coin Offerings (ICOs) and tokenization. However, one project has been seeing significant attention for the unique way in which it uses NFTs to change crowdfunding and investment.
Orbeon Protocol (ORBN) first phase of the presale sold out in two weeks and will be going up in price Friday 18th November. Here’s how blockchain technology and Orbeon Protocol (ORBN) could change the VC game forever.
Cryptocurrency Exchanges
The first way blockchain technology is disrupting venture capitalists is through cryptocurrency exchanges.
For instance, Orbeon Protocol has a vibrant cryptocurrency exchange where individuals can not only swap different currencies but businesses can also raise capital through equity and reward-based NFTs that have been fractionalized.
The Orbeon Protocol (ORBN) exchange offers investors exposure to cryptocurrencies without having to deal with the technicalities of buying or mining them.
This trend presents a problem for venture capitalists because they have a vested interest in how an emerging market evolves and how it interacts with traditional markets like Wall Street.
Incentivizing Open Source Communities
Incentivizing open-source communities comes in many different forms. One way to incentivize a community is by giving them equity in the company.
This will work well if the company has a lot of potential and it’s possible that they will be able to turn their equity into large amounts of capital. Another way that we’ve seen successful companies incentivize open-source communities is by paying them for their contributions.
The more contributors there are, the less each individual contributor needs to do for the project, so this type of incentivization can be very effective for projects with lots of contributors and not as many requirements.
Decreasing the Amount of Time Between an Idea and Financing
Blockchain technology has been called a world-changing innovation, with the potential to completely transform the way that transactions are done.
One of blockchain’s main advantages is the ability to reduce the amount of time between an idea and financing. A recent report from Accenture showed that it took an average of 74 days for startup founders to fund their first round of funding.
This can now be reduced to less than 24 hours by attracting investors through the crypto community. As with Orbeon Protocol, startups can raise capital rapidly through Orbeon Protocol’s user base, which can invest in budding startups for as low as $1.
This is changing the crowdfunding and venture capital industry by allowing anyone to invest in a company through affordable fractionalized NFTs. Orbeon Protocol also allows startups to engage more with their community by offering these equity based NFTs.
Cutting Out Bureaucracy in Banking
Banks are notorious for bureaucracy and inefficiency. International bank transfers, for example, can take days to process. With blockchain technology, that time could be cut down to minutes or hours.
Once the transaction has been verified by the blockchain network it’s broadcasted to all of the nodes and you’ll know instantly if there were any problems with your payment.
This helps eliminate fraud and other security issues that plague banks today. It also eliminates expensive checks and international wire fees which can amount to up to $50 per transaction.
Cutting Out the Middleman
What would you do if you wanted a loan from a bank?
You have to put up collateral, go through rigorous paperwork, give out sensitive information and then wait weeks or months while they review your application. With blockchain technology, however, you could upload a document as proof of ownership on the public ledger system.
From there, it’s validated by multiple people who also want to receive this loan – meaning lenders don’t need someone holding their hostage funds until their application is reviewed.
Conclusion
These are just a few of the many ways blockchain technology is disrupting the traditional venture capital industry. Investors are keen to be able to access the previously-gated VC industry through novel means, such as Orbeon Protocol (ORBN). This attention has certainly been reflected in the Orbeon Protocol presale.
During this presale, the native utility ORBN tokens started trading at a price of $0.004 and have already increased to $0.009, but are expected to surge up to $0.24 by the time the presale concludes. The demand behind this is likely due to the disruptive nature of Orbeon Protocol, but also because ORBN holders are eligible for benefits like staking rewards and project governance.
About company
Orbeon Protocol is one of the world’s first crypto crowdfunding platforms, that enables users to fractionally invest in some of the most exciting and promising early-stage businesses.
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