Reality-Backed Tokens: A New Paradigm in Blockchain Markets

The world of cryptocurrency faces multiple challenges daily, and they seem to keep coming.

One thing that is particularly common and even basic to the majority of projects and currencies is their lack of fundamental intrinsic value.

This is the most used argument of crypto-skeptics, and its proponents are found in every corner of the business world. For example, the head of the Bank of Korea said that cryptocurrencies have no intrinsic value at all – words that have been said many times before.

Edward Cotterell, Founder and CEO of Reality Company, a global tech startup that is outlining its plans to become the first blockchain-based exchange says:

“The importance of liquidity – especially when large cryptocurrency exchanges are moving with so much money – cannot be overstated. With the current crash of cryptocurrencies, exchanges and exchanges can no longer carry on as usual. The pressure is on, and rightly so, to provide real value with less volatility in coding space”.

Reality seeks to address this very problem by offering an asset-backed cryptocurrency.

closer look

Regulated by the Isle of Man Financial Services Authority, The Reality Company creates concepts that aim to fundamentally change the world of finance through a diverse approach. Their goals include, but are not limited to:

  • Improving entrepreneurs’ access to capital
  • Making investments accessible to everyone

The company plans to achieve these goals by selling its real-world tokens (ERC 20 tokens). The structure allows 95% of an investor’s net income to be invested in real production assets – managed by reputable, market-leading investment advisors – while the remaining 5% is invested back into Reality’s operating ecosystem and reserves.

This will kick-start the creation of the “Reality Block Exchange,” a decentralized blockchain-based exchange that allows small and medium businesses to list their shares in the form of tokens and get direct access to the capital market to raise funds at a fraction of the cost (and time) typically associated with traditional exchanges.

It also means that Reality Coin investors, regardless of their bank balance, will get a seat in the ring for companies that typically fall into the realm of private equity and venture capital investment firms.

Multiple currency method: to alpha and infinity

According to the project’s whitepaper, two cryptocurrencies will be released – Reality Coin (Alpha) and Reality Coin (Infinity).

Reality Coin Alpha, also called RLTA, will have a variety of tools aimed at providing multiple benefits to its users.

For example, RLTA holders can:

  • Access to the Reality platform and the Reality Block Exchange
  • Get favorable opportunities to buy token shares of companies that will be listed on the stock exchange on more favorable terms.
  • Use RLTA as a means of exchange within the ecosystem. This alone can mean that they will be able to pay annual membership fees, receive advice and support from the project’s team of advisors, complete transactions and much more.
  • Convert RLTA to other cryptocurrencies.

On the other hand, Reality Coin (Infinity), which is marked with RLTI, offers slightly different tools. Owners will:

  • Has the right to vote on key and important decisions related to project operations.
  • Gain preferential rights to obtain more RLTI from third parties upon public issuance of new coins.
  • Claim Reality Holdings to recover portions of its RLTIs.
  • Use RLTI as a medium of exchange.

On a mission to revolutionize the financial world, the Reality Company bears its name that brings together tangible and real production assets based on blockchain technology and intertwined with the world of crypto.

The project is based on some important principles, such as respect for privacy, integrity, compliance with existing rules, accountability, inclusion, security, and disruption.

Reality Asset-Backed Tokens: A New Paradigm in Blockchain Markets appeared first on CryptoPotato.

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