The Important Role Tokens Play In The Market
Combined with the liquidity and cost-effectiveness blockchain technology provides tokenization offers a different type of flexibility that the traditional finance ecosystem lacks. As a result, assets from traditional financial instruments like securities to unique physical items like art pieces have been tokenized.
Many investors are unable to afford to invest in standard assets due to the high cost but since tokens are divisible, they are given the chance to share their assets among a group of people, allowing investors to get into the market with lower investments. This translates to more fundraising opportunities for both small and medium businesses that are struggling to find investment through both traditional and crypto markets.
PolkaCover uses the token $CVR in the business model. The token allows the platform to become significantly stronger as it encourages loyalty, distribution, and liquidity. It can be used as an additional method of payment or as the sole payment method for special deals. Moreover, the flexibility effect will be amplified by the absence of intermediaries on the blockchain system, therefore reducing the operational costs.