With the publishing of the World Token Market by the Blockchain Trust Group, retail investors now have access to tokenized investments via secure and immutable blockchain technology. Now the question becomes, who exactly are the investors that are taking advantage of this opportunity?
But first, understand that the infrastructure of investing into Security Token Offerings and digital securities continues to grow and evolve – and this is exactly the type of investments investors seem to like: issuance platforms, securities exchanges, and transfer agent custody implementation platforms. Would you rather own a piece of a company listed on the NYSE, or a piece of the exchange itself?
Investors are starting to like the individual tokenized investments made available on these platforms as well. Many are looking for projects that add value around the concept of “smart contracts”, which allow for the programming of automatic actions based on certain events or time triggering elements.
Two major deals so far this year are the $20 million raised by Provenance with their STO where blockchain and traditional technology investors took part in the deal, and Blue Rock Capital (with Blue Stone Capital) who signed $10 million to invest in Summer Group’s $100 million dollar STO.
That’s big news, but savvy investors are always on the lookout for good investment deals, and with tokenization being such a new concept, there aren’t many great deals out there – yet. As more and more investors and issuers begin to trust the entire concept of blockchain and understand the power behind it, this number will skyrocket. Take it to the bank on that!
But for now, deals can also be partially settled physically and partially with tokenization for those looking for a comprise with new technology. Liquidity is of prime importance to these investors. Liquidity also happens to be the promise of tokenization, which is why the concept of tokenization is so revolutionary. But liquidity cannot happen without the emergence of tokenization platforms as mentioned above – which makes the future of the World Token Market so exciting as well. That’s what investors are really looking for!
Tokenization allows for the democratization of capital markets by providing investors with access to tokenized Security Token Offerings. But the adoption of such technology will take time. The consensus is that the future of tokenization is bright, but most are approaching it with cautious optimism.
Most STO’s have been offered under private placement exemptions which means they were available to accredited investors only. But now with the JOBS ACT under Regulation A+, all investors can participate. As a result, Blockstack was able to raise $28 with their equity crowdfunding campaign done as the first SEC approved token offering, opening the door for others to consider making their offerings accessible to a wider range of investors. In other words, everyone can invest in these types of deals!
Investors still must do their due diligence as no one should be investing in a random STO just because it sounds great and you want to be part of the upward-trend of this industry. You must understand the company behind the offering as the company and the product matters. But if you’re an investor looking for tolerable risk and decent returns with the added capability of a liquid investment, then investing in a STO may be for you. And if you’re an issuer seeking to market a previously illiquid deal (such as real estate) to a wide audience of targeted investors, then tokenization is definitely for you! Look no further than the platform of choice: request a demo of this powerful blockchain technology at the World Token Market!