Compared to their early stage, cryptocurrencies now look more promising than ever. Yet, it’s hard to forget the time of ICO frenzy and all of the pump and dump schemes that plagued the market. This resulted in a need to separate serious cryptocurrency projects from those that appear shady, and one of the solutions for that problem was security token offerings. Here we will briefly explain what security tokens and exchange platforms are and list some of the more reliable security token exchange sites.
What Is A Security Token Offering Platform?
Security token investment is different from buying cryptocurrencies. Unlike Bitcoin or Etherum, which are assets in their own right and have utility, STO exchange is more similar to buying stocks. Meaning these are governed or regulated by laws, making them a more reliable form of investment.
Security tokens don’t have to be necessarily connected to cryptocurrencies – as nowadays, you can tokenize the shares of your company or other assets. To put it bluntly, the STO exchange is like a stock exchange but on the blockchain, which has many advantages. This means that STO platforms are websites where you can buy security tokens or ownership of certain assets. Moreover, you can tokenize your assets and even use them as collateral for loans.
Are Security Token Exchanges Safe?
When it comes to the safety of STO exchange or STO investment, many regard it as a more secure option compared to just a regular ICO. After all, there is a certain level of regulation and compliance in place which significantly mitigates the chance of scam. However, much like with anything else, it’s not bulletproof. Security token investment platforms could be frauds. Also, it’s possible to fall victim to hacking which can lead to loss of profit. This is why choosing well-established and credible security token issuance platforms are paramount.
How To Choose A Token Investment Platform
The idea behind security token issuance platforms is to create tokens seamlessly or buy them. You also want those offerings to be visible to potential buyers, so having a well-established platform with solid traffic is necessary. Here, we will provide you with some of the most popular sites for security token exchange.
Top STO Issuance Platforms To Consider This Year
The goal here is to give you a general overview of the sites that are a good fit for STO exchange. You should decide for yourself and do detailed research for each of the listed websites.
This platform, powered by its token Poly, is a good fit for anyone getting into tokenization for the first time. Polymath has a streamlined and user-friendly way to help you create security tokens, along with a favorable trading environment.
Investors find this platform attractive because of its layer structure. They have a protocol layer that runs the site—application layer, which facilitates token creation. The legal layer serves as a guide for tokenization and the exchange layer that handles KYC and AML due diligence.
Capexmove excitingly leverages Ethereum blockchain technology. They allow business users to take a loan by issuing security tokens of their company as collateral. So for those who wish to trade on a lending market Capexmove is a good option.
Swarm is known for operating on the SRC20 protocol. This means that you can tokenize almost any form of assets, from crypto hedges to agricultural land and products. In a way, this is a platform mainly focused on bringing conventional capital into the world of digital currencies. Furthermore, they plan to leverage artificial intelligence to create a top-tier user experience. So, keep a close eye on this one.
A platform led by a team of banking experts with a strong belief that cryptocurrencies are the future. They have a firm conviction that tokenization will take place at some point in time.
Another STO platform that allows you to invest in companies and startups that tokenized their assets. A good choice for those who wish to join the community of blockchain enthusiasts looking for fresh investment opportunities.
Apart from the usual STO exchange features, Securitize offers lots of customization potential. They have available integration with multiple Ethereum network applications and look to expand their network of collaboration.
Moreover, the site is praised for its security features, which this company set out to do. After all, they are called Securitize. It’s also worth mentioning that they rank as one of the top security token issuance platforms globally. In other words, this is a solid choice, and you can hardly go wrong with it.
BlockRules aims to become a renowned marketplace platform for businesses searching for capital and investors looking for asset equity. In truth, asset tokenization is an ideal solution for these demands. They have great tools for managing your tokenization efforts and allowing buyers to find relevant investments.
Securrency has been around since 2015, and blockchain experts designed it. The founders felt there is a need to expedite the process of crypto growth and development. Once again, users can tokenize pretty much any asset, even their listed securities, and fiat money. They have a robust system that can help companies in a clutch situation when they urgently need capital.
As far as security token platforms go, Harbor is among the very best. It’s available worldwide and allows users from all over the world to tokenize their assets. Moreover, you have tools for tokenizing digital assets. Given how NFTs are becoming popular and pretty expensive, it can be an excellent idea to tokenize some assets and split the ownership.
All of this may seem like it’s aimed at business users, but it’s not. There are lots of collectors across the world who are tokenizing their rare goods, like collectible cards. It’s platforms like Harbor that allow for these new online markets to exist.
Ensure better liquidity for your assets by relying on PixelPlex. You can fragment the ownership of your goods or become a partial owner by purchasing someone else’s tokens. The platform is secure and private and yet offers a lot of transparency regarding your investments. You also get a comprehensive investors dashboard and other tools that help you make more informed decisions.
All things considered, STO investments are a good thing. First, they allow anyone to be an investor or stakeholder regardless of their capital. Second, it can boost the financial capacity of many startups and find them additional financing options. It also adds more security to the whole crypto world, which is essential if this technology succeeds and gains higher utility.
It’s always good to see blockchain being leveraged to facilitate a more democratic approach for global markets. We see all sorts of new trends that this technology has spawned, and all of them have their pros and cons. However, innovation is always a positive thing because there are always valuable takeaways from experience regardless of success.