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Over the years, the cryptocurrency industry has seen a lot of development, and it invented many different types of coins and tokens. It started with utility tokens meant to be used in payments, which eventually branched out in many different directions. On the other hand, it also has security tokens — digital securities.
Of course, the regulators still remain convinced that most altcoins are actually securities that were not registered, which would make them illegal. However, there are also many projects which developed legal securities, registered them with the regulators, and did everything by the book. Today, we have five such tokens to review and give you potential new investment opportunities.
The first on our list is tZERO — a project that is creating a regulated exchange for buying and selling digital securities and security tokens. This platform has been in development for a while because the project wanted to ensure that it does everything right — not only when it comes to technology, but also the current laws.
Once the platform is up and running, it will be the leader in the digital securities space, and a go-to platform for security tokens. And, since it will be fully regulated, it will also likely attract institutional investors such as banks, funds, and others who are interested in engaging with digital assets but discouraged due to the lack of regulations.
To learn more about this token visit our Investing in tZERO guide.
2. Blockchain Capital
The next on the list is Blockchain Capital, and this is a project that started it all in the digital securities space. To put it quite simply — it is the Bitcoin of securities. The project was launched back in 2013, which means that it is approaching its first decade of existence. Since then, it had many noteworthy investments, including the likes of Coinbase, BitFuty, BlockStream, Ripple, Ethereum, ABRA, Bancor, Harbor, Augur, Block.one, and many others.
The project has its native BCAP token, which it launched several years after the project itself emerged — in April 2017. This was a remarkable token sale that resulted in Blockchain Capital raising $10 million in only six hours. Of course, this is nothing special these days, but back then, it was a mark of huge interest.
The token was even supported by Coinbase Custody back in mid-2019, making it the first security token to be listed on Coinbase.
Halfway down the list, we have Lottery.com. This is one of the earliest security tokens in the crypto space, which had a more humanitarian ring to it. When it emerged, it explained its vision to raise as much money as possible in order to help solve some of the biggest and most pressing humanitarian needs around the world.
Of course, given the state of some areas around the globe and the conditions under which people there live, this means needing billions of dollars in order to help. But, Lottery.com did not shy away from the challenge, instead, it started using global charitable raffles and its idea started to spread. They now offer token holders a 7% revenue share on all ticket sales.
The project’s idea attracted quite a few people, and even some major names, such as co-chief investment officer of Pantera Capital, Joey Krug. Then, there was chief strategy officer EVP, SF 49rs, Paraag Marathe, and PayPal’s own seed investor, Bruce Gibney, of the Founders Fund.
The project also reached a number of milestones, such as becoming the premier mobile lottery play service in the US, currently approved in multiple states. It is also a provider of lottery results in over 30 countries around the world. And, lastly, it is the world’s largest lottery results and information provider to the digital media sector for the US, and in fact, North American lottery games as a whole.
In the fourth spot, there is SpiceVC — a security token managed by a team that has quite a lot of experience in the digital securities space. The project and its team are strong investors in the future of digital securities and security tokens.
So far, their biggest and most notable investment is in a project called Securitize, which is a token issuer that has shown the most traction in terms of tokenizing security tokens. They have provided tokenization services to a number of companies, including ROX, SAGA, Slice, Bakkt, Lottery.com, Archax, and others.
5. 22X Fund
Lastly, we have 22X Fund, which is another security token project that was involved in investing in numerous pre-vetted startups that were a part of Batch 22 of the 500 Startups early-stage venture fund and seed accelerator program. This is very important because 500 Startups made massive investments in over 1200 companies to date.
Meanwhile, the 500 Startups Accelerator program has a ~2% acceptance rate, which is also quite noteworthy. The majority of Batch22 investments were in the field of Fintech, which includes around 9 companies. Then, there are firms dealing in data — around 7 of them. Another 4 firms were directly involved in Digital Health.
However, the biggest reason why people want to invest in this token is the fact that investors receive tokens in 22X, which will own anywhere between 2.5% and 10% of the equity in every 22X portfolio firm.
Digital securities and security tokens are another major product of the cryptocurrency industry that might not be receiving mainstream attention as of yet. However, as you can see from the list, there are many projects among them that are quite impactful on the world around us. These may not be the most glamorous projects, but they are still excellent investment opportunities, and as such, they deserve a close watch by opportunity seekers in the digital asset space.