The startup investment platform\Republic has released its cryptocurrency token by the name of Note.
The token, is currently available via earning through a token claiming event at Republic’s website.
Republic will not only cater to investors interested in blockchain based platforms for their crowdfunding opportunities, but also those who want to support conventional tech-based startups.
Republic was formed on the idea that the general public should have more access to startups.
Due to a ruling by the U.S. Securities and Exchange Commission (SEC) in May 2016, investing in startups is no longer restricted to high level investors. But even as requirements have become more lenient, the lack of information and platforms to connect investors to these startups still made for a lack of access.
Republic fills the gap.
What Does Republic Do?
By connecting investors with relevant startups, the platform aims to make it easier for interested investors to be able to buy their stake in something, while also making it simpler for startups to raise funds.
Republic allows everyone to be an angel investor. They can start with as little as $10 in private startups and receive returns as the startup progresses. Returns are usually present through liquidity events such as an IPO or sale of the company. According to the company, startups may go through additional funding rounds and issue “Shadow Shares” which carry economic rights that provide a return.
The platform was launched in 2016. Republic went on to find easier and simpler ways to invest in startups. It then started to study the integration of cryptocurrencies into its platform. Since 2018, it worked to bring a regulated and compliant way to invest in startups using a digital asset. The current version of the token is a step toward making that happen.
While the asset is not considered security at the present moment, Republic is doing is due diligence and having it treated as such in order to keep its status as an SEC and Financial Industry Regulatory Authority (FINRA) regulated entity intact.
What Makes Note Special?
Note is a token that would incentivize Republic users to help grow the Republic ecosystem. Individuals may earn notes by investing, referring family and friends and other key activities that help to advance the Republic startup ecosystem.
Note holders would get exclusive early access to better deals and event tickets, while also being able to connect to all startups that are supported by the Republic platform.
Anyone who holds Note tokens would also potentially be able to receive economic benefits from any startup efforts being supported by the platform.
This is what makes Note a potential security token. Investors need to bear in mind that this feature is not guaranteed, and is only being considered by the platform.
Total Notes in existence are 20 million, it may increase in the future.
Further information can be found on this dedicated page for Republic Note.