The year 2018 was forecasted to be the year of security tokens. This Fintech strategy is very disruptive.
Funds worth $5.6 billion were raised using ICOs. These funds were used for utility tokens and transactional cryptocurrencies. However, regulatory complexities keep these investment capital schemes in their dormant stage. Since security tokens represent real-time ownership of real estate assets, they are definitely a great deal.
For instance, Leaseum partners pay the dividends either in fiat currencies like USD, Euro, or Crypto for real estate tokens.
The opportunity for crypto securities is really huge. Specifically so with respect to real estate asset classes. Converting real estate into real estate tokens or security tokens that can be traded as comfortably as stocks bring in easy liquidity to the asset class. Wall Street will take to security tokens pretty soon.
Security tokens are different from cryptocurrencies. They come with high trading capabilities. They serve as a legally valid bridge that connects the real world with the crypto-space backed by blockchain technology.
Considering the current legal institutions, the fund investment strategies in the distributed ledger technology are being revived in a way to be legally compliant.
Trevor Koverko in his transcript that predicted about the industry remarked: “We are looking for existing experts, general partners, and limited partners who do security tokens for a living to build one to 200 million dollar venture fund to back securities tokens.” He further added that it is the “biggest opportunity right now.” Though not an overnight process, he was positive about security tokens going to be the future. He further expressed positively about how investors will be able to enjoy the best deal float.”
It is going to be about educating investors about how to buy and sell these investments. The current technology is laying the groundwork to enable debt, real estate, equity, and real estate trading in the same platform.
Infrastructure, logical and regulatory upgrades will be made by exchanges who have decade-long experience in financial operations. In the future investors will not worry about whether they are on a distributor ledger technology and they will trade like a no-brainer.
SEC is facilitating token trading, and they are asking for a lot of regulatory compliance to ensure investors will be able to get the facts and see real developments that will prove what the token issuers promise them.
SEC recognizes that not all companies launch their tokens with an intention to scam. Therefore, they say that as a regulatory agency they are looking forward to regulating the market in order to allow for the ecosystem to grow smoothly. They approve of the fact that security tokens are just like traditional securities. The thing with modern security tokens is that they are automatically organized after being tokenized while being managed on smart contracts that are based on the blockchain infrastructure.
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