There has been a lot going on around about security tokens. In this article, I am going to discuss security tokens in-depth and see why these tokens are currently being considered as the new investment tool on the market.
People are convinced that within no time, security tokens are going to bring an end to Initial Coin Offerings. It is important that you can fully comprehend that security tokens are different from basic utility tokens.
My understanding of securities is that they are tradable financial assets like bonds, equities, and warrants. Well, security tokens meet similar requirements and are therefore considered as securities in crypto trading.
Tokens must be taken through a test called the Howey test, which is made up of certain requirements to determine which category they belong to. These requirements are:
🔗 The token is a financial investment.
🔗 The investment goes to a company or a group of companies.
🔗 The investor expects to make a profit by acquiring the token.
🔗 The expected profit is generated by the work of third parties.
🔗 Once a token meets all the above requirements, it is then okay to be considered a security token.
Security tokens have these benefits:
🔗 They reduce costs for investors in that they eliminate the need for intermediaries who are rampant in traditional financial transactions. This means investors can trade security tokens actively, and they are not subjected to the fees as in other transactions.
🔗 The lack of intermediaries also helps in fastening the transaction processes, as in this case, the investors and token providers are in direct contact.
🔗 With STOs, trading takes place on the internet, making it more global as compared to conventional ways in which global investment can be quite challenging especially if the involved countries have a strained political relationship.
🔗 Companies and other institutions can reach a wider investor base by offering products and services on the internet.
TLS PLATFORM.
This is a leading cryptocurrency mining infrastructure and portfolio management solution provider which will be using Green Energy and money management algorithms. The platform will operate on an ERC-20 token, TLS, which is a security token built on Ethereum blockchain.
Security tokens usually have an underlying asset which makes them intrinsically valuable compared to other basic utility tokens. Token holders on this platform will be eligible for earning 40% of profits on a pro-rata basis.
ERC-20 has become very significant lately because it defines a common list of rules which all Ethereum tokens must follow. Developers of all types are empowered to predict accurately the manner in which new tokens will function within the larger Ethereum system.
This means that a developer’s work is simplified since they can be able to carry on with their work keeping at the back of their minds that each and every project does not require to be redone every time there is a new token release, as long as the new token follows the rules.
CONCLUSION.
TLS is aiming at coming up with a universal peer to peer and business to business payment mechanism with the help of the powerful blockchain technology.
🔗 Website: https://tlsgroup.io/en/home
🔗 Whitepaper: https://drive.google.com/file/d/14TNLJNCi692T82mNXBlaooyB7KTtI6Qz/view
🔗 Facebook: https://www.facebook.com/tlstoken/
🔗 Twitter: https://twitter.com/TLSGroup1
🔗 Instagram: https://www.instagram.com/tls_group_llc/
★ Author: jamesndungu1
★ BitcoinTalk Profile: https://bitcointalk.org/index.php?action=profile;u=1856049
★ All Images credited to TLS GROUP WEBSITE
