The new trend in Investments in 2019 ?

Cryptocurrency has come a long way. It has been growing at an exponential rate with an influx of capital, driven by young, optimistic and savvy investors. Many people say that 2018 marked the cryptocurrency bubble. But more believes that it’s much more than a bubble. With advancements in blockchain technology, we are witnessing the beginning of a new digital economy.

Bitcoin is considered as the first generation cryptocurrency. Today, it’s still considered as the most valuable cryptocurrency. The birth of Ethereum or the second generation cryptocurrency changed the crypto landscape as it introduced smart contracts. Ethereum then gave birth to thousands of other altcoins. In 2017, we’ve witnessed one problem caused by the power of smart contracts. People started to introduce altcoins with no value, some even turned out to be scams. Because of this, government regulators started to scrutinize ICOs or Initial Coin Offerings.

People learned their lessons. Not all coins present value and some are simply created in order to deceive investors. This year, security coins are becoming the latest trend. In this article, we will discuss all advantages of security tokens as compared to usual utility tokens.

Security tokens are believed to be safer, faster and more transparent. Through security tokens, traditional financial products can be digitized and put onto the blockchain. The following are the most important advantages security tokens can offer:

They are more compliant
As you notice, regulators nowadays are spending a lot of time and effort figuring out which tokens are securities or not. Their tough stand with regards to cryptocurrency is the result of scams and other illegal activities which dragged the name of crypto. Tokenized securities can give regulators the opportunity to apply more compliance and control. While this may sound scary for some people, there’s no denying that it can bridge the gap between crypto and regulations.

1. They invite more investors

Because of compliance, regulators might soon understand the advantages of global Security Token standards and support it. Companies offering security tokens are given opportunity to access an international pool of capital and reach out to a larger potential investor base. Once released in the market and traded, security tokens can also be accessed by anyone. This will democratize access to capital markets for companies and investors alike.

1. Transparency

Just like most blockchain based cryptocurrencies, security tokens also offer transparency. Blockchain is designed to allow a uniform method of verifying and tracking data to prevent tampering. Same is true with all security tokens.

1. Liquidity

The most unique feature of security tokens is that they fractional ownership of assets and company shares. When minimum investment is lowered more liquidity will come into the market because more and more people will be able to purchase smaller stakes. They’d also be given opportunity to purchase assets that are considered to be illiquid or not easy to sell.

if you’re looking for a good security token to invest in, check out OrbisSolutions. Download the whitepaper at https://www.orbistransfer.com and sign up for more updates.