Tokens are representations of the investments made on HighCastle. For instance, if a company raises €100,000 we create 100,000 tokens, and distribute them evenly based on how much each investor has put in. If you’ve invested €1,000, you get 1,000 tokens. When you have tokens, you are free to sell them at any price you want, or buy more tokens from other investors.
Tokens represent a loan given to the syndicate, and it is the rights to this loan that you are trading. The syndicate has taken a loan from all the investors who formed the syndicate, and used this money to invest into a company. Upon a liquidity event (IPO or acquisition), the syndicate will see a return on the investment, and pay the return to all tokenholders in amounts relative to how many tokens you hold. (If you hold 10% of the tokens in a syndicate, you get 10% of the return of the syndicate)