Paris-headquartered Tozex, a cryptoasset platform for issuing, financing, and trading announced it has introduced the Believers Reward Offering (BRO). The BRO is a sustainable alternative to ICOs and STOs to help SMEs overcome tough economic times and open new financing possibilities.
The BRO is a brand new crowdlending investment system that allows businesses to finance their development by borrowing crypto assets (stablecoins) from investors around the world. Different from its predecessors, the BRO is the first crowdlending protocol created on the Blockchain that utilizes smart contract capabilities and supports stablecoins.
New ways of fundraising
Tozex's co-founders, crypto and blockchain experts Remy André Ozcan and Christophe André Ozcan, emphasize the importance of a new fundraising mechanism.
They said that the BRO is a fundraising method that will come in handy today, when the market is struggling to survive one of the most severe economic crises of the 21st century. In comparison to the more risky ICO (which flourished during the 2017 cryptocurrency boom when people were willing to take risks), the BRO implements a crowdlending system that guarantees the execution of the agreement between the investor and the borrower.
"We expect that ITO will get out of its historic cradle as a fundraising method dedicated to blockchain startups only. Considering its characteristics (quick start, massive funds, no capital dilution, Liquidity ), this new powerful way to raise funds cannot be limited to startups in the future," said Remy André Ozcan, co-founder of Tozex and president of the French Federation of Blockchain Professionals (FFPB).
Tozex said that BRO allows users to sharply decrease the pump-and-dump phenomenon, limit volatility, and foster growth by providing equal treatment of all contributors, a feature that it couldn't even dream of before and the absence of which consequently made many market players unfriendly towards the new technologies.
At the same time, the Tozex platform allows users to choose any fundraising mechanism they prefer. BRO, ICO, and STO will be available after the Tozex BRO campaign, which officially starts on June 22, 2020, and is now going through its pre-investment stage, according to the announcement.
