Home Altcoins News Momentum for Security Token Investment Gathering among Retail Investors

Momentum for Security Token Investment Gathering among Retail Investors

security tokens

Several cryptocurrency experts opine that Security Tokens are the crypto variants that will be changing the way investors are looking at the investment process.

In the year 2017, ICO craze lost its momentum, and several companies from across the globe have been using ICOs for fundraising for their capital requirements.  They were finding it harder to identify accredited investors who might have the required funds.

With ICOs being almost dead, it is the age of compliant STOs.  Regulators from different countries have stepped in to ensure that security token investments are safe for investors.   Several companies are building their products based on the products and services that will permit the selling and the trading of the security tokens.

The assets that back the security tokens will be blockchain-powered, and they will be checked for the essential criteria like compliance with regulatory standards, fractional ownership, trade-ability, cheap settlements, instant liquidity, interoperability of assets, and custodian services by the security tokens.

Securities’ will be consisting of several asset classes, like private equity, real estate assets, venture capital, and more which are permitted by the regulatory bodies to qualify as security.  These securities are those that can are regulated, tokenized, and traded. Utility tokens were free of regulations, and they are usable only for specific asset classes.

The cornerstones for blockchain securities are already laid down in the year 2018. The liquidity is set to raise in 2019. Security tokens are set to take over the crypto space.

Leaseum Partners are offering security tokens during the Q1 of the year 2019 for real estate backed security tokens.

STOs are going to take over the securities industry, and those who invest are going to have a bright future on their investments.  The momentum for investing in security tokens is slowly gathering among investors.  Technologically advanced tokenization platforms are providing for all the features that are important for security tokens to establish themselves.

Security tokens are for those who are looking for secure investments with improved transparency and legitimacy in the transactions. Security tokens according to many is set to be the third blockchain revolution. This is a market that literally did not exist last year.

Several security token issuers are working in partnership with licensed brokerages, thereby making the investment process secure for their investors. While there are whole lot of opponents against regulations, the government regulators are cracking down to ensure security of investors.  With streamlined regulation, the security token industry is going to be a safe investment affair for retail investors and institutional investors alike.

Every issuer is working through accomplishing the needful to get their token approved for issuance. Future is bright for security tokens.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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