What advantages of tokenized securities are crucial for investors?
We’ll cover the following topics in the current Stobox Insights episode:
? How exactly tokens can deliver an extra income;
? Three distinct mechanisms of tokens liquidity;
? Technologies that will allow company’s transactions to be monitored;
? Why and how tokenized assets are attractive for crуpto-investors.
If you are interested in applying tokenization for your business, don’t hesitate to ask for a complimentary 30-min consultation: https://stobox.io/tokenization
For startups launching security token offerings (STOs) or businesses selling any tokenized securities, access to global capital pools and highly diversified investor profiles can lead to faster sales than would be possible in traditional, geographically constrained markets. In addition, with tokenized security existing in the blockchain, it becomes possible to accept contributions in fiat currency and cryptocurrency, opening up entirely new opportunities for potential participants.
In 2017, there was a surge in Initial Coin Offerings (ICOs), which were primarily aimed at the cryptocurrency market. Many companies obtained funds through Initial Coin Offerings, but fraudsters flooded the market, causing investors to lose a significant amount of money. Later, the SEC and other law enforcement agencies intervened in the market’s regulation, although ICOs have thrived since then. Security Token Offerings (STO), on the other hand, are a superior means of investing and fundraising. STOs are used by firms to raise funds from small and large investors by utilizing the notion of tokenization. Nonetheless, the STO market is very new, and few people are familiar with how to invest in these tokens.
There is a lot of benefit in security token offering for angel investors, as well as venture capitalists. Security Tokens are exchanged all around the world, with the exception of countries where they are currently prohibited. The whole STO ecosystem exists outside of the blockchain. Blockchain technology offers the safest transactions possible, with almost no chance of fraud.
Anyone with a Security Token Exchange account can invest in their preferred token. This infrastructure, unlike ICOs, is both fraud-proof and transparent. Furthermore, there is no limit to the amount of money you can invest in a single token, the market is open 24 hours a day, and you may sell or purchase more tokens at any time.
Another crucial instrument tokenized assets provide is enhanced liquidity. Market liquidity is a crucial check to make your company attractive for angel investors, venture capitalists, family offices, high net worth individuals (HNWIs), and smaller investors. Market liquidity definition is the speed with which an asset or security may be turned into cash without impacting its market value. Cash is the most liquid of all assets.
00:00 — Begining
00:51 — Benefit 1: Enhanced yield
02:26 — Benefit 2: Enhanced liquidity
04:09 — Benefit 3: Access to more asset classes
04:39 — Benefit 4: Transparency
05:15 — Benefit 5: Store of value for crypto investors
07:23 — Final words
If you are interested to receive free 30 min consultation about the tokenization of your business leave a request on our website: https://stobox.io/tokenization
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