New Blockchain Cryptocurrency Provides Alternative Financing For Entrepreneurs
CORL Could Be A Look Into The Future
Banks have traditionally been hesitant to give loans to startup business ventures, for a number of reasons. Recent advances in technology and blockchain cryptocurrency are providing alternatives to legacy brick and mortar banks.
“Finance often gets tagged as, ‘You’re too big, you move slowly.’ We want to challenge that rhetoric and say we can disrupt and move as fast as any startup can—it’s just about organizing ourselves in a certain way,” Sunayna Tuteja, director of emerging tech and innovation at TD Ameritrade told Adweek in February of this year.
Despite banks’ attempts to adapt to changes, blockchain technology is preparing to offer startups another option for financing their projects. CORL is a Canadian crypto company launching their Initial Token Offering (ITO) in April. They offer investors and companies the opportunity to enter a progressive revenue sharing agreement:
Our Revenue Sharing matures when a predefined total repayment cap is reached, and we target a 5-year payback term, depending on your unique situation. If your revenues grow faster than planned, you pay back the loan a little faster; if they are slower, then your payback is slower. Corl’s financing solution aligns our investors with your sales growth goals. We’re here to help you grow – on your terms.
This unique model provides a flexible structure for startups, it also provides transparency for investors – who more than ever are interested in the social impact of companies they invest in, work for, or purchase from.
Companies and investors interested in operating in the digital sphere may find this innovative method more equitable and less of a hassle than traditional banking methods.
Why Blockchain Fundraising Could Be The Future
While CORL is a Canadian company, the United States Senate recently passed legislation to roll back consumer protections of the Dodd-Frank banking regulation. Progressives and Social Democrats in Congress have long critiqued Dodd-Frank as not being strong compared to Glass-Steagall, which was significantly weakened by President Bill Clinton and Congress in 1999.
This legislation threatens to undo important rules protecting us from risk. “This legislation again puts taxpayers on the hook for bailouts,” said Sen. Sherrod Brown (OH – D), the top Democrat on the banking panel, on the Senate floor. As reported by CNN, Sen. Elizabeth Warren (MA – D) also had strong words regarding the bill, “Buried down in the details of the bill are more landmines for American families. Washington has become completely disconnected from the real problem in people’s lives.”
With further deregulation of the banking industry, memories of the 2008 economic collapse, and saturation of money in the political system – United States citizens are skeptical of banks and the government in general.
With the increasing interest in blockchain technology; specifically cryptocurrency, American citizens are more likely to engage in innovative business ventures which circumvent traditional banking institutions.
What Would The Success Of Blockchain Mean
With constant innovation in gaming and technology combined with fears around another banking collapse – companies like CORL are in a position to appeal to a large number of middle and working class individuals across the world.
The success of crypto investing would provide more fundraising options than previously available for those without extreme personal wealth. While the method is unlikely to make bank lending obsolete, the success of emerging technologies offering the alternative could help decrease the global income inequality gap.