Security Tokens Surge in Popularity as ICO Funding Plummets to Yearly Lows
More recently, however, global ICO funding has plummeted due to looming actions by global regulators to shut down companies offering tokens that fall into the definition of a security.
The difficulty for ICO investors is discerning what type of token the ICO they are investing in is offering: a utility token or a security token.
Security tokens, on the other hand, are classified as being an investment in a specific company or project, with the goal of generating investors profit through the success of the connected project.
Registered security tokens are now looking like they will be the next hottest product for cryptocurrency investors, due to their regulatory compliance and massive potential for profits.
In layman terms, they are the intersection of digital assets (tokens) with traditional financial products — a new technology improving old things.”Pompliano feels incredibly confident about the future of security tokens, boldly adding that they will “revolutionize the traditional finance world.”Featured image from Shutterstock
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