Why Crypto Investors Need To Differentiate Between Security Tokens And Tokenized Securities

2019-2-19 05:33

After a year in which Initial Coin Offerings (ICOs) have experienced different regulatory challenges, security tokens are starting to enter the market. However, security tokens are completely different from tokenized securities, and it is not just semantics.

In a recent article released by Noelle Acheson, member of CoinDesk’s product team, she explains the main differences related to these two definitions.

As regulators are starting to pay closer attention to the cryptocurrency and blockchain markets, security tokens are a new definition that has spread in the space. According to Acheson, we must be careful when we say security token and tokenized security. Using them interchangeably is confusing and also misleading. They are so different that they can even be regulated differently.

Acheson says that tokenized security is a new technology representation (which is shown as a token) that shares some qualities with traditional securities. A security token is different since it refers to a traditional asset (a security) that is wrapped in a new technology.

Regulatory agencies around the world made it clear that the use case is the focus and not the technology behind them. Tokenized securities are simply modifications of familiar assets in order to enhance their liquidity. These products are not new for regulators, thus it is much easier to be approved.

However, security tokens are a new product that work in a different way. Regulatory agencies have now to understand how to better regulate these new assets. Thus, the risks related to them are higher than with tokenized securities. In the near future, the market will have many new projects related to securities and tokens.

Security tokens will be behaving in a similar way to applications that are difficult to foresee. Some examples are Snapchat, Twitter or Tinder, among others. Blockchain-based assets will also have a deep impact in capital markets, improving inefficiencies and access.

In sum, tokenized securities are already here and there will be a lot of progress being made regarding this issue. Meanwhile, security tokens are still trying to find their place in the market.

Security Token Offerings (STOs) Are Being Labeled as the Next Big Thing, But Risks are Lying Within

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

VIP Tokens (VIP) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 VIP

security tokens securities tokenized different released recent

Источник: bitcoinexchangeguide.com

security tokens → Результатов: 126


Фото:

Coinbase: Never Needed SEC Approval to List Security Tokens

San Francisco-based Coinbase backpedaled on its Security and Exchange Commision (SEC) approval announcement after previously exciting a furor in cryptocurrency circles for claiming the contrary. Coinbase Backpedals Statements On July 17, 2018, CryptoSlate reported that cryptocurrency exchange behemoth Coinbase received approvals from the SEC and Financial Industry Regulatory Authority (FINRA) to acquire Keystone Capital Corp.

2018-7-20 13:00


Vaultbank Adds Free Trading To A Merged Stock And Digital Assets Platform

Vaultbank has announced the addition of free stock trading to its forthcoming launch in an effort to expand its goal of converging traditional investments and digital assets. This new feature, advanced by a strategic partnership, is in addition to existing features that will allow trading of utility and security tokens. With this merging of services […]

2018-7-20 11:10


Фото:

Malta stock exchange partners should launch the Security Tokens Platform with OKEx

Thanks to such accommodating legislation, cryptocurrency companies like Binance and OKEx have flocked to the country to build out their services. Helping to further build these services, the Malta Stock Exchange (MSE) just announced the launch of its MSX PLC, an investment vehicle that will partner with leading crypto exchanges to create joint ventures in

2018-7-20 01:04


Trade Cryptocurrency with Ease and Security – Singapore-based Cryptocurrency Trading Platform Tokenize Xchange Announces Initial Token Offering

Singapore, 16 July 2018 – Singapore’s leading cryptocurrency trading platform, Tokenize Xchange, has announced its Initial Coin Offering (ICO) sale. Despite the sea of emerging ICOs and other blockchain based platforms, the access to such cryptocurrency tokens is still severely lacking.

2018-7-16 13:50


MOBU ICO

MOBU offers a decentralized organised ICO platform to facilitate the release of compliant security tokens on the blockchain. Real businesses wishing to raise capital by issuing security tokens will build their ICOs on the MOBU platform.

2018-7-16 10:55


Byteball Gets Steemy: Byteball Joins Steem Community & Airdrop

Byteball, an ICO platform that offers an out-of-the-box solution for the compliant sale of security tokens, announced today that it would join the Steem community and airdrop Steem users.  A notable component of this partnership is that Steem accounts will be able… The post Byteball Gets Steemy: Byteball Joins Steem Community & Airdrop appeared first on CoinCentral.

2018-7-13 23:13


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

How soon can AVAX reach $100? Decoding the altcoin's rise

Data from the derivatives market showed that shorts dominated the positions. A golden cross on the daily chart suggested an increase to $60 in the near term. Avalanche's [AVAX] price increasThe post How soon can AVAX reach $100? Decoding the altcoin's rise appeared first on AMBCrypto.

Ethereum's short-term outlook - How high or low will ETH's price go now?

Legendary trader Peter Brandt believes Ethereum's price chart is ‘intriguing' Ethereum's price showed signs of recovery, with an increase in new addresses Ethereum has so far exhibited a vThe post Ethereum's short-term outlook - How high or low will ETH's price go now? appeared first on AMBCrypto.

Toncoin surges by +17% - Is it time for TON holders to cash out?

TON's price surged significantly over the last 24 hours Activity on the network grew, while the revenue generated by the protocol fell Toncoin [TON] turned out to be one of the underdogs of The post Toncoin surges by +17% - Is it time for TON holders to cash out? appeared first on AMBCrypto.

Is VELO the XRP of South East Asia? Long way to go, but...

Hike in VELO's price could be linked to greater activity in the Asian market While XRP's sentiment fell, VELO spiked to a highly positive reading VELO, the native token of Velo, a blockchainThe post Is VELO the XRP of South East Asia? Long way to go, but... appeared first on AMBCrypto.

Ethereum's latest 'low' - How ETH's price action is affecting staking

The number of new ETH staked daily has dropped on the charts This can be attributed to the altcoin's meek price performance The daily amount of new Ethereum [ETH] staked fell to a year-to-daThe post Ethereum's latest 'low' - How ETH's price action is affecting staking appeared first on AMBCrypto.

Monero's weekly hike - Mapping if LocalMonero's closure can stop its rally

Demand for XMR has spiked over the last few days This happened despite the proposed plan to shut down LocalMonero Monero’s native coin XMR appears poised to extend its seven-day rally, desThe post Monero's weekly hike - Mapping if LocalMonero's closure can stop its rally appeared first on AMBCrypto.