As the world moves increasingly towards a digital future, security tokens are becoming an ever more critical part of our financial landscape.
In the world of finance, there are a variety of investment options available. Here we will explore some of the top security tokens to invest in for 2022.
What are security tokens?
Security tokens are digital assets that are leading by real-world assets. This could be anything from property to commodities and even debt or equity in a company.
Security tokens offer investors several benefits, including 24/7 trading, fractional ownership, and increased liquidity.
Security tokens differ from other digital assets, such as utility tokens, because they are subject to government regulations. This means that they must comply with specific rules and requirements, such as providing investor protection.
Top Security Tokens to Invest
With so many different security tokens on the market, it can be challenging to know which ones to invest in. Here are a few of the top security tokens to consider investing in for 2022:
Cadence is a security token that represents ownership in a real estate investment trust (REIT). The REIT owns a portfolio of properties across the United States, including office buildings, retail centers, and apartments.
The Cadence team has a proven track record in the real estate industry, and the token is already trading on several major exchanges.
The Cadence team has over 50 years of experience in the real estate industry, which gives them a strong understanding of the market. Use of blockchain technology, makes Cadence a good option for those looking to invest in security tokens.
tZERO is a security token platform that offers trading and settlement of digital assets. The platform provides a more efficient and secure way to trade assets. The tZERO platform was one of the most anticipated security token trading platforms when it launched in 2018.
tZERO is also one of the most well-known and respected names in the security token space. Understanding both the traditional financial world and the world of blockchain technology makes tZERO a good option for those looking to invest in security tokens.
tZERO has been endorsed by several big names in the finance world, including Overstock.com CEO Patrick Byrne and JPMorgan Chase.
Lottery.com is a security token that is backed by the global lottery industry. The token offers investors a share of the revenue from lottery ticket sales.
The Lottery.com token is already trading on several major exchanges, and the team has plans to list the token on more exchanges in the future. It is also transparent and secure, two significant benefits of using blockchain technology.
Earning a 7% revenue share on all ticket sales, the Lottery.com token is a good option for those looking to invest in security tokens. Lottery.com is backed by some of the leading investors in the space, including Pantera Capital, Paraag Marathe, and Bruce Gibney.
22x Fund is an early-stage venture fund and seed accelerator program that invests in pre-vetted startups. The program is part of Batch 22 from 500 Startups, which took place in San Francisco in the summer/fall of 2017.
The 500 Startups Accelerator has a ~2% acceptance rate, and most companies that are part of the 22x Fund have raised previous funding and are revenue-generating.
The 22x Fund has invested in 30 startups; some notable investments include Visual.ly, Canva, talkdesk, Twilio, Udemy, & ipsy. 500 Startups have invested in over 1200 companies. With the 22x Fund, they continue to invest in early-stage companies that have the potential to be the next big thing.
INX is a security token exchange that will offer trading of digital assets, including security tokens. Security token firm plans to list up to $250 million worth of its own Tokens through an STO later this year. The Token will be the first security token to trade on a U.S. stock exchange and will be available to accredited investors globally.
“The launch of our STO trading platform is a landmark event not only for INX but for the entire digital securities ecosystem,” said Company’s CEO Shy Datika-Malchen.
“This is an important step forward in our mission to make digital securities more liquid and accessible to a wider range of investors.”
The Inx platform is highly secure and compliant with all applicable regulations. The team has a strong understanding of the traditional financial world and the world of blockchain technology.
Securitize is a leading digital securities issuer and exchange. They initially launched in 2017 and have since successfully tokenised some of the most successful security tokens, such as Blockchain Capital (BCAP) and SpiceVC (SPICE).
In 2021, the company launched a marketplace to buy and sell digital securities. This new exchange has two sections:
- the primary market which offers security token offerings; while
- secondary markets which offers site-wide interface or API program for those who want more control over trading strategies
Blockchain Capital (BCAP)
Blockchain Capital is one of the most successful security token issuers. The company was founded in 2013 and raised over $85 million from investors such as Marc Andreessen, Peter Thiel, and Blockchain Capital.
“The BCAP Security Token Offering allows investors to participate in the potential upside of some of the most active,” said Blockchain Capital managing partner Brock Pierce.
The BCAP token represents an ownership stake in Blockchain Capital and gives holders a share of the profits generated by the fund. The token is tradeable on secondary markets and can be used to access several different benefits.
Frequently Asked Questions (FAQs)
Following are some of the frequently asked questions about security tokens.
How can I buy security tokens?
You can buy security tokens through an exchange or from the issuer directly. You will need to be an accredited investor to buy most security tokens.
Are security tokens regulated?
Security tokens are subject to federal and state securities laws. This means that they must be registered with the SEC and that issuers must comply with all applicable regulations.
What is a digital asset?
A digital asset is a file that is stored electronically, such as a cryptocurrency, token, or image.
What is a blockchain?
A blockchain is a distributed database that records transactions in a secure, tamper-proof manner.
What is a security token offering (STO)?
A security token offering (STO) is a fundraising event in which investors purchase tokens that represent a stake in a company or project.