Nowadays, those who want to access the capital markets are forced to use the old financial system, given the lack of valuable alternatives.
The cost of listing a security on a securities exchange, both in the equity and bond markets, can easily exceed $ 100,000 per year. In addition, there are significant costs associated with burdensome and excessive regulatory disclosure.
Moreover, if the quotation is executed on smaller markets, visibility may only be increased on a regional scale, allowing to raise funds only from a limited pool of investors.
There are frequent bias phenomena where the same type of bonds, issued by the same company, but listed on different markets have different yield rates.
In many instances, the benefits of ease of access to market and visibility are not sufficiently significant to justify the pricey listing fees. Hence, more and more SMEs prefer not to resort to this mean of financing.
How does Noku Bit solve these issues?
Nokubit aims to disintermediate the financial system, thus both the legacy banking system as well as the financial markets.
Being listed on Nokubit is almost free of charge. While traditional markets require a cost of around $ 100,000 per year, issuing an asset on Nokubit does not cost more than a few cents.
The sidechain is supranational and hence investors from all over the world can access the same asset, listed on the same market, leading to enhanced visibility and potential greater demand. Moreover, companies can choose the most convenient jurisdiction from which to issue their assets, extensively cutting the costs of bureaucracy.
An infrastructure everyone will be benefiting from
Banks will also benefit from Nokubit. The platform is constructed with the purpose of issuing financial products and facilitating their transparent circulation.
Same as for companies, banks will access a worldwide market as well as being entitled to a fee deriving from every single transaction executed in the purchase and sale of its own products.
On Nokubit, in fact, institutions which issue an asset earn as much as 20% of all transaction fees generated by that asset.
Most funds or financial instruments retain a portion of the profits to pay for the platform management. Thanks to NokuBit system fees, these financial instruments can now return a higher share of the profits to their customers.
Finally, the users themselves will also reap the benefits and experience superior return margins. In the current market environment, everyone wishing to pursue an investment has to pass through at least a couple intermediaries, a broker
The cost of executing each operation ranges between $ 2 and $ 50 depending on the country and the market of choice. Both previously mentioned intermediaries are not intrinsically necessary and by disintermediating them the commissions will be drastically reduced to just a few cents.
Thus, for all these reasons, we expect Nokubit to be a huge win-win for all the participants in the markets.