The current payment paradigm is inefficient, with multiple friction points each adding fees to the process:
Initial coin offerings have, by some accounts, recently surpassed traditional early stage venture capital funding and, as a result, have drawn a substantial amount of attention, including from U.S. regulators intensely focused on the securities law compliance of such offerings. There is a deep market need for legitimate venues to support security token offerings.
While Scratch seeks to be a leader in this space and believes it is well-positioned to develop a decentralized exchange, the size of the market opportunity will continue to attract potential competitors seeking to provide trading services for securities tokens. As we pursue the development of our proposed decentralized exchange, we expect to face significant competition from both emerging financial technology companies and established market participants.