What is Token Crowdfunding (TCF)?

TCF (aka initial exchange offering) is a way for your company to raise capital by issuing digital tokens. This method of fundraising offers more flexibility, brand exposure and exit opportunities.

This method of fundraising is regulated by the Securities Commission Malaysia under the Guidelines on Digital Asset. pitchIN is one of the two platforms regulated by the Securities Commission to facilitate Token Crowdfunding in Malaysia. 

Digital Tokens are assets recorded on the distributed ledger (aka blockchain). They can be designed and programmed to provide a combination of rights to the holder. For example:

• Features when used on the company's platform - such as discounts and perks
• Right to receive % of revenue or profit of a project or company
• Ability to participate in the project or company, such as voting rights and equitable interests

Digital tokens are called different names depending on the rights that are attached to them.

Globally, there are many ways to categorise digital tokens. This is how pitchIN characterises them:

Because digital tokens are recorded on the blockchain, it comes with some cool features:

• Digital Tokens are Programmable. You can program them to do interesting things like automating creation and transfer of tokens, instant settlement and more!
• Digital Tokens can be Fractionalized and easily Transferred. This makes them a much easier asset class to transfer and trade.
• Digital Tokens are Interoperable across platforms. They can be bought, sold and used on multiple platforms. You can also keep them in your own wallet!
• Transactions are Secure and Immutable. Hacking a blockchain is extremely expensive. This means bad actors cannot change or reverse a transaction once it is made.
• Transactions are Transparent and Pseudo-anonymous. All transactions made can be viewed by anyone, without exposing the identities of the person involved.
• Transaction Records are Sharable with multiple parties in real time. This eliminates the need for data disputes, inaccuracy and manual reconciliations across multiple parties.

Yes, ECF is regulated by the Securities Commission (SC) of Malaysia under the Guidelines on Digital Asset. Only registered platforms, like pitchIN, are allowed to host companies on their platform for TCF.

You will need submit an application to pitchIN and undergo a due diligence process with pitchIN. This includes assessing the business proposal, evaluating fit and properness of your team, and ensuring the accuracy of disclosure documents.

Read more about the process here.