The crypto market has endured enough this year, that’s, to say the least of the situation which has surrounded the market for the most part of the year. Bearish trends have become the new direction and many digital coins, including the biggest ones, has fallen victim to it. There have been some positive, however, as some projects are still standing tall. Security tokens, despite the market gradually sinking, has been at the center of so much hype.
The crypto market has already seen a couple of tokens, yet still, Security tokens have seen a surge in their popularity, and now crypto experts are ticking them to blow up soon. Security tokens have become the new attractive alternative to Initial coin Offerings, whose growth has been severely hampered by regulatory bodies. STO’s are equipped with a lot of qualities which has attracted the attention of crypto investors are this piece sheds light of a few of them.
- A Recovery attribute
One fear of every crypto investor is losing access to his or her digital wallet, containing digital assets. Of course, there have been many cases where investors lost their access to their wallets and sometimes getting locked out by cybercriminals. The inability of any method to recover funds has been one of the significant problems in crypto investing as investors do not look forward to just throwing away their investment portfolio just like that, without any effort to get them back.
STO’s, however, do have the ability to reissue tokens to shareholders in scenarios like this. However, benefits like this come after appropriate checks and confirmations are done.
- Utmost Transparency/Clarity
One goodie associated with STO’s is transparency. Trust in the blockchain world is something hard to come by. Adequate information of whom you are getting into business with is very vital an STO’s simplifies if for investors. STO’s permits investors of a company to obtain full information about the issuer, coupled with complete visibility on all tokens which have been given or promised or even restricted.
- Intrinsic Value
Security tokens represent a lawful right to ownership of the permanent value of the issuing company. They give a more prominent incentive to the holder altogether, while possibly lessening the risk involved. STO’s also protects the interest in dividends, profit sharing, voting rights, and other benefits that their holders can have, unlike utility tokens which are only made to speak for future access to a product or service from the issuing company.