Why You Should Invest in an STO Listing
The cryptocurrency market has evolved over the years. Whether you’re keeping up with the latest news or not, you may have come across the term Security Token Offerings (STO) or Security Token. Many experts view this as the future of investing and it’s not hard to see why.
They offer real value
An STO listing is created on a blockchain, for example the Ethereum erc20 tokens list. However, an STO differs greatly from a utility tokens list. While utility tokens provide investors with access only to products or services available on the blockchain platform, STOs offer real value by providing investors with access to existing investment instruments in traditional markets such as real estate. This provides the investor with access to a reliable profit stream.
They offer greater security
A security token listing is treated as a ‘Tokenized Security.’ The same laws and regulations that traditional securities are subject to apply to security tokens. This means that the company issuing the STO listing must comply with applicable securities regulations. This increases the credibility of STOs.
They offer greater opportunities for investment
Security tokens enable fractional ownership in the market instruments behind the tokens. This lowers the minimum investment required. More people therefore have access to these investments as they are able to purchase smaller stakes. For example, individuals can own a stake in a real estate project at a small fee. As the number of investors in any particular project increases, the liquidity increases even for assets that are considered difficult to sell. The issuer of the Ethereum token list can therefore market their asset to just about anyone interested in investing their money. This in turn increases the value of the asset.
STOs aren’t just a passing trend. They are the way investments will work in the future.