Founders using Tokenize.it for fundraising or employee participation will have a token for their company. Our platform makes the setup of this token a breeze: we do all the work and even pay the transaction fees.
The token then lives on Ethereum mainnet, a public blockchain. It will have an address (e.g. 0x4769734B013ce356515B3bF68335482C0aD33d75, the Tokenize.it token) and will be controlled by an admin account, which is the founders Ethereum account. This includes minting, burning and setting the token’s properties. Whoever controls the token’s admin account, can create new tokens and remove them from any holder’s account. This makes securing the founder’s account a crucial task.Note that the Tokenize.it platform does not control the token. Instead, it
We established the importance of keeping the founder's account secure as it controls the token, which will have lots of value if the company is valuable.
Investors on the Tokenize.it platform need an Ethereum account in order to receive the purchased company tokens. Also, if the respective purchasing option includes cryptocurrency payment, investors can pay with e.g. USDC or EUROC instead of a bank transfer.
Investors have the option to receive the purchased company tokens in a different Ethereum account than the one used for login. This can drastically improve security, as a quick and easy to use software wallet can be used for login and a well secured hardware wallet can receive the tokens. It is also possible to use a multi-sig wallet like Safe as a vault. Users can set up a vault address during the investment process or in their personal security settings.
An account is derived from a private key, which is a string of characters. This private key can be stored in different ways, which influence how safe and secure and easy to use it is:
We consider the internet as one of the most important attack vectors when it comes to blockchain security.
Most hardware wallets also have good random number generators, which are important when creating new accounts. They enable private key generation without using another device.
They come with companion software to be installed on your computer, which makes interacting with the wallet simple. This is why we recommend using hardware wallets when signing up at Tokenize.it.
If you already have a hardware wallet from a manufacturer you trust, use that. Otherwise, you could check the wallet selection tool maintained by the Ethereum Foundation. Make sure to filter for “Hardware” in the “Feature filters” tab.
Make sure that you buy your hardware wallet only from vendors authorized by the manufacturer. The manufacturer of your wallet will provide you with information about the setup process. Follow these instructions and familiarize yourself with the device and its software.
Be aware of the importance of your seed phrase. Please store it securely without the use of electronics and only ever input it in a hardware wallet you trust.
In order to use your Ethereum account with Tokenize.it, you need to connect it with our web-application. This can be done with a browser-connected software wallet like Metamask or Frame. These offer an option to “import” or “connect” a hardware wallet. Afterwards you will be able to pick the corresponding address when connecting the wallet with our web-application. Whenever the web-application needs you to sign a transaction or login-request, please follow the instructions of your hardware wallet to provide the signature.