A Paris-based cryptocurrency startup, Tozex introduced an alternative to industry-standard ways to raise ICO and STO funds in the form of Believers Reward Offering (BRO).
According to a press release, it is anticipated that BRO will help small businesses “overcome difficult times in the economy and open up new financing opportunities.”
The new system will allow them to raise funds in stablecoins by borrowing from investors around the world. BRO is the first crowdlending protocol created on the blockchain that utilizes smart contract capabilities and supports stablecoins.
Tozex argues that the new method of raising funds drastically limits the ability to use pump and dump schemes, reduces volatility, and ensures equal treatment for all participants. The BRO mechanism is 100% guaranteed that the agreement between the investor and the borrower is fulfilled, the statement said.
Tozex co-founders Remy André Ozcan and Christophe André Ozcan hope that the system will go beyond the blockchain industry.
The official launch of BRO on the Tozex platform will take place on June 22. Later, the startup will offer users to choose any fundraising mechanism, including ICO and STO.
Recall, according to The Block analyst Larry Chermak, 89% of ICO projects were unprofitable.