Top 5 Security Tokens to Invest In – Opinion

Below are the top 5 security tokens which I personally believe have the most potential for liquidity and future growth. As a disclaimer, I'm a token holder in all the investments listed below. No financial compensation was given for this article. This is based exclusively on my personal opinion.

#5 – Lottery.com

This was one of the earliest STOs in the space. The vision is to raise billions of dollars to help solve the most pressing humanitarian needs across the globe using global charitable raffles. They offer token holders 7% revenue share on all ticket sales.

Some of the notable investors behind this project include:

• Pantera Capital – Joey Krug (co-chief Investment officer).
• Paraag Marathe (Chief Strategy Officer EVP, SF 49rs).
• Bruce Gibney (Founders Fund, seed investor of PayPal).

What's impressive with this project is the current progress that they have made which includes:

• The world’s largest lottery results and information provider to the digital media sector for U.S. and North American lottery games, including Google and Amazon Alexa.
• Provider of lottery results in more than 30 countries worldwide.
• In the US Lottery.com is a premier mobile lottery play service with multiple state approvals.

This token can be purchased on the OpenFinance platform.

#4 – tZERO

tZERO is working on building a regulated exchange for trading security tokens and digital securities. They are taking their time on developing this platform as they wish to ensure that they are fully legally compliant. Think of tZERO as the Binance of regulated security tokens.

If they succeed in their stated mission, they will become a market leader in the digital securities space. Being fully regulated institutional investors and banks will be able to use this platform for all their exchange needs.

We have reported on tZERO frequently including the painful due diligence process which is slowing the launch of the platform. Being fully legally compliant is a positive thing, and we prefer that they take things slow to ensure full compliance and legality.

This token can be purchased directly on the tZERO platform.

#3 – 22x Fund

22X Fund invested in 30 pre-vetted start-ups that were part of Batch 22 of the 500 Startups early-stage venture fund and seed accelerator program. 500 Startups have invested in over 1200 companies, some of these notable investments include Udemy, Visual.ly, Canva, Twilio, talkdesk, & ipsy.

All 22X Fund companies are part of Batch 22 from 500 Startups which took place in San Francisco in summer/fall of 2017. The 500 Startups Accelerator has a ~2% acceptance rate. The majority have raised previous funding and are revenue generating.

Batch22 focuses on FinTech (9 companies), Data (7 companies), and Digital Health (4 companies). The list can be found here.

Investors receive tokens in 22X which will own between 2.5% to 10% of the equity in each 22X portfolio company.

This token can be purchased on the OpenFinance platform.

#2 – Blockchain Capital

This was the initial security token that started the revolution. BCAP tokens represent tokens in a venture fund managed by Blockchain Capital.

Blockchain Capital really needs no introduction when it comes to blockchain. They were founded in 2013 and have such notable investments as ABRA, Augur, Bancor, BitFuty, BitGo, Block.one, BlockStream, Coinbase, Ethereum, Harbor, Kraken, Ripple, Securitize, & Templum.

The BCAP token was launched in April 2017 and raised $10M in six hours.

In June, 2019 Coinbase Custody announced support for the BCAP token. The importance of this news cannot be understated, as this is the first security token to be supported by Coinbase.

This token can be purchased on the OpenFinance platform.

#1 – SpiceVC

My personal favorite is SpiceVC and this token is managed by an experienced team that are heavily involved in the digital securities space. They are investing in the future of security tokens and digital securities. Their most notable investment is in Securitize. Securitize is the token issuer that has shown the most traction when it comes to tokenizing security tokens. They have directly tokenized, or offered tokenization services to the bulk of the companies on this list.

Other notable investments by SpiceVC include:

• SAGA – An upcoming stable currency
• Slice – The tokenization of real estate
• ROX – Tokenization of commercial real estate.
• Archax – A digital securities exchange to be launched in London, UK.
• Lottery.com – An online lottery security token.
• Bakkt – A digital assets security exchange company created by ICE, the owners of the New York Stock Exchange. Bakkt is one of the most anticipated exchanges in the cryptocurrency space and has the potential to bring in institutional grade investments into Bitcoin and cryptocurrency.

This token can be purchased on the OpenFinance platform.

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