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A lot of investors these days seem to be intimidated by the concept of digital securities, mostly due to the stories of the regulators hunting down securities over the last several years. However, one thing to note is that the regulators were cracking down of securities that were posing as utilities in order to trick investors into giving them money.
These were typically projects that never registered with the regulators, nor did they follow the standing securities laws. However, there are many security projects out there that have done things by the book, and these represent excellent investments that can be quite profitable under the right market circumstances.
Here, we have prepared a list of some of the most interesting digital securities that we recommend checking out right now.
1. Blockchain Capital
In the first spot, we have Blockchain Capital — a leading venture capital company that invests in blockchain-related companies and crypto-assets alike. The company recently announced that the net asset value (NAV) of each BCAP token has gone up to $26.04 as of December 31st, 2021.
The company’s report noted that BCAP NAV finished up 56% for the final quarter of last year and that it has gone up by 311.4% for the entirety of 2021. This means that Blockchain Capital proved to be an exceptional investment last year, and so far, there is no reason to believe that this will change in months to come.
Blockchain Capital is believed to be one of the earliest digital securities, and it was launched nearly a decade ago, back in 2013, and ever since, it had countless noteworthy investments. Some worth mentioning include Coinbase, Ripple, Ethereum, Block.one, Blockstream, Bancor, and many more.
When it held its token offering, Blockchain Capital managed to raise over $10 million in less than 6 hours, which was rather impressive for digital security in April 2017.
Next up, we have Lottery.com. This is another old security token that was developed for a more humanitarian reason. The project explained its vision back when it first emerged, saying that it aims to raise as much money as it can so that it could help solve some burning questions that concern all of humanity. The project wanted to solve the pressing needs of people around the world, which meant that the project has its work cut out for it.
Even today, there are many people in many regions of the world who are leading unjustly difficult lives, with little to no opportunities to make their lives better. Lottery.com emerged to help them by using global charitable raffles, which allowed its idea to rapidly spread. These days, the project can offer 7% revenue share on ticket sales to its token holders, which is already a great benefit for them.
Meanwhile, the project’s growth in popularity started attracting even some major names in the financial sector. One example is Joey Krug of Pantera Capital, and another is the Chief Strategy Officer EVP, SF 49rs, Paraag Marathe, among others.
Since its launch, Lottery.com became the largest mobile lottery play service in the US, approved in multiple states, and a provider of lottery results in more than 30 different countries.
Next up, we have tZERO, which is a project that created a regulated exchange platform for buying and selling digital securities. The platform has been long-anticipated, and its developers spent quite a long time working on it, wishing to ensure that there are no issues and that everything is done right — not only from the technical standpoint but also in regards to the current laws and regulations.
As a fully regulated project, tZERO became one of the leaders in the digital securities space, and a go-to platform for security tokens and digital securities. As a regulated platform, it also managed to attract traditional financial institutions, many of which have been keeping an eye on digital currencies for years now, but were hesitant to join the industry due to the lack of regulations and the potential to see cryptocurrencies banned at some point. With digital securities, there are no such risks, which makes the projects like tZERO safe for institutions to get involved with.
4. Aspen Digital
Aspen Digital is innovative, technology-driven crypto and digital asset management platform. It is a young platform that was only launched last year, in 2021. The company was co-founded by TTB Partners and the Everest Ventures Group. Since it emerged, Aspen’s goal has been to provide comprehensive and user-friendly solutions for money managers and expert investors.
Anyone, from family offices, external asset managers, securities brokerages, investment advisors, private bankers, and even high-net-worth individuals have found themselves working with the company since its went live. The company is very user-friendly, as well, and with a single account, Aspen provides a complete digital assets product shelf. This includes everything from trading execution to automated investment strategies, yield enhancement products, comprehensive portfolio reporting, and much more.
Aspen’s idea is to combine blockchain with traditional finance expertise, and on top of that, it also adds a dedicated relationship management team that will guide its clients through the onboarding process, and beyond, through the procedure of strategy execution. The company also insists that it conducts rigorous due diligence on all of its counterparties and that it only offers exposure to platforms and products that are the most robust.
Furthermore, it provides aggregated access to top exchanges for fast and deep liquidity, a vast range of coin pairings that were previously only available to those who had multiple accounts on many different exchanges. Lastly, users can also set up automated investment strategies, such as dollar-cost averaging and limiting buy/sell orders.
In the fifth spot, we have INVAO, which features a token that represents an entire pool of selected blockchain assets. The project noted that its STO was regulated by the Liechtenstein’d FMA, and that it decided to go for this model because it wanted to offer its investors the highest level of confidence in its product, as well as the highest security for those who decide to invest in it.
As a company, INVAO is a firm that offers “Professional eyes on your blockchain investments.” In other words, it offers actively managed digital asset portfolios, featuring only tested and proven investment approaches. Its goal is to outperform Bitcoin throughout all market cycles, be they bullish or bearish, and at the same time, to provide effective downside protection.
The project seems rather competitive when it comes to the quality of its portfolio and management of digital assets, which is always a good sign, as it indicates that it will do everything in its power to justify the investors’ trust.
6. 22X Fund
Nearing the end of the list, we have 22X Fund. This is a security token project that was involved in investing in many different pre-vetted companies and startups that belonged to the Batch 22 of the 500 Startups early-stage venture fund and seed accelerator program. Considering that 500 Startups made some huge investments in over 1,200 companies so far, this is quite important.
However, the 500 Startups Accelerator program has a ~2% acceptance rate, which is also quite worth noting. Most of the Batch22 investments used to be in the Fintech sector, which included 9 different firms. 7 companies dealing in data were selected for investments as well, and finally, another 4 selected companies were dealing with Digital Health.
But, the main reason why people are getting interested in this digital security is the fact that investors receive tokens in 22X, which is set to own anywhere between 2.5% and 10% of the equity in every 22X portfolio firm.
Finally, the last on our list is SpiceVC. This is a digital security managed by a highly experienced team that has been dealing with the digital securities space for years. Both the project itself and its team are notable investors in the future of security tokens and digital securities, in general.
At this point, the project’s most notable investment is a project called Securitize. This is a known token issuer that has seen the most traction when it comes to tokenizing security tokens. Their tokenization services were already employed by many companies, including Lottery.com, which also made this list, as well as others, such as SAGA, Bakkt, ROX, Slice, and Archax.
Digital securities are a big part of the investment world, and while they are quite different from typical cryptocurrencies such as Bitcoin, they still earned their place in traditional and crypto finance alike. There are many such projects easily available to investors all over the world these days, and many have quite a big of an impact on the world around us. Even though they might not be as big and famous as Bitcoin, they still offer an excellent investment opportunity, which makes them worth considering.