Blockchain Tokens and the Dawn of the Decentralized Business Model

Summary

Over the last few years over $1bn has been invested in digital currency startups from venture capital firms and institutional investors. Then something odd started happening over the last 4 months. A handful of blockchain-based projects have raised a combined $250m+, but none of that money has come from venture capitalists. So what the heck is going on?

Blockchain tokens.

These projects are raising money by creating and then selling their own tokens through crowdfunding on a blockchain. At first glance this just looks like a new way to raise money, much like how a normal company issues and sells stock to raise capital. At second glance it goes far beyond that.