Digital Tokens
A look into the role of the blockchain and how LMX is utilizing tokenization to create a smart way to invest in bitcoin mining
--- Tokenization breaks real-world assets, like houses or art, into digital pieces - 'tokens'. Each token represents a fraction of the asset, allowing ownership to be bought, sold, or traded online. Tokens reside on a blockchain - a public, transparent record book. This visibility ensures accountability, making it difficult for any deception about ownership.
We choose the physical asset we want to tokenize, in this case, the operation.
We confirm ownership, obtain necessary permissions, and adher to local laws and regulations.
We use a blockchain platform to create the digital tokens.
Tokens can be sold or distributed. The distributed tokens now represent ownership or stake in the physical asset.
Tokenization utilizes what is known as smart contracts, which act like vending machines - you input money, and the contract issues a token in return. It allows for easier trading of assets that were hard to divide before, enabling broader access to investments once reserved for large corporations or affluent individuals.
Investing in LMX yields $LMX tokens, which provide investors exposure to bitcoin mining through a dedicated fund. Newly won bitcoins from LMX's investments will be distributed to the LMX fund holders. Investors can then hold or trade their tokens via a peer-to-peer (P2P) exchange on app.realio.fund.
When you invest in LMX, you're supporting the " real-world asset crypto investment." But what does that mean? Simply put, you're investing in a fund that invests in the actual operations that use computing power to win newly minted bitcoin. This isn't just speculation on bitcoin's price going up or down. Instead, it's about directly investing in the bitcoin mining process, the work that helps new bitcoin come into existence.