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Digital securities have been a group of blockchain products that got a bad reputation right from the start due to a bit of a misunderstanding between investors and the regulators. A lot of people heard about the financial regulators, such as the US SEC, seeking out crypto securities and penalizing these projects, which resulted in many of them crashing or worse, completely dying.
This led to the assumption that crypto securities are something illegal or something that might get you into trouble, or even result in massive losses. This is, however, not the case. The fact is that digital securities are perfectly legitimate blockchain products, and the biggest way they differ from regular, utility cryptos is the fact that there are regulations that digital securities need to follow. If anything, this makes them safer, since you have the law backing you up.
The projects that were hunted by the regulators were illegal securities that were not registered with the regulators, while still offering security tokens. Even worse, they posed as utility tokens, and as such, they tricked investors into buying them. This is their crime, and that is why they were facing lawsuits. Registered securities are, on the contrary, perfectly valid products that you can engage with at any time. In fact, to help you get started, we have narrowed down the list of securities that we believe are the best ones to the following eight:
1. Blockchain Capital
The first on our list is Blockchain Capital, which managed to establish itself as a leading venture capital company that invests in firms that work with blockchain technology and/or digital assets. The company has seen a rather strong start of the year, announcing that the NAV (Net Asset Value) of its BCAP tokens has risen to over $26.
Blockchain Capital was launched in 2013, and since then, it played a major role in the financing of more than 75 different blockchain-based companies. The firm also provided qualified investors with the ability to gain exposure to top-notch blockchain firms through its own security token. Some of the most notable investments that it was involved with include Ethereum, Block.one, Ripple, Coinbase, Paradex, Abra, Harbor, Bancor, and others.
As one of the first movers into the digital security space, Blockchain Capital has established itself as the leading company in this sector, and it is more than deserving of that position.
In the second spot, we have INX, which claims to be introducing a new regulated standard. The company is, of course, fully regulated and built according to the regulations provided by the SEC, EU, and FINRA. It offers world-class safety with the highest security standards to ensure the protection of the funds that it manages.
It also aims to establish a spot trading suite for digital currencies and security tokens, with a broad crypto trading offering. It also targets institutional investors, claiming that it can serve as their bridge into the world of crypto. Of course, those who trade independently are also included, and can access very unique trading opportunities.
The platform offers an intuitive trading experience with continuous, uninterrupted trading operations and responsive trading support for those who may need it.
3. SPICE VC
Moving forward, we have SPICE VC. This is a company that recognized the power and potential of tokenization, as well as the fact that tokenization is disrupting the financial industry. According to its website, the company believes that tokenization is on a rapid growth path to becoming a multi-trillion dollar industry, which is why SPICE decided to enter it and become one of the leaders of this new wave of innovation and adoption.
The project now offers a wide exposure to the massive growth of the Blockchain ecosystem, offering several different funds, as well as investments in entrepreneurs, or exposure to the massive growth of the blockchain and tokenization ecosystems for investors.
The company already has a rich history of major investments in some of the biggest blockchain-related companies, including Bakkt, Securitize, Lottery.com, Ripio, InvestaX, and more. However, the project also has a list of achievements that it is very proud of, such as being the first fund focusing on the tokenization ecosystem, being the first fully tokenized VC fund, and the 4th ever digital security. It was also the first digital security issued on a globally-compliant platform, the first digital security to trade on a regulated marketplace, and the first digital security fund to entitle holders to a direct share of net exits.
4. Science Blockchain
Halfway down the list, we have Science Blockchain. This is an incubator fund tailored towards startups that wish to work with blockchain technology. The company was among the first firms to undergo an STO trading of the SCI token. The company held a STO in 2017, and its security token is known as SCI.
During its STO, it managed to raise $12 million, with its token trading at a price of $1 per unit. In other words, it sold 12 million SCI tokens. The company calls its blockchain incubator a vehicle that works with early-stage blockchain firms at the formation stage. It offers the services of incubating, supporting, investing, and trading in early token offerings. It also assists firms when it comes to launching their token offering. So far, all projects that accepted Science Blockchain’s leadership and assistance saw tremendous success, so the company definitely knows what it is doing.
Moving on to the fifth spot, we have a project called Protos. This is a company that grants investors exposure to professionally managed portfolios of digital currency assets and DeFi networks. Since it started in 2017, Protos managed to help more than 200 investors gain exposure to emerging digital asset classes. It offers products for crypto holders, as well as fiat currency investors.
Since the rise of the DeFi sector, the company also started offering DeFi trading and investment insights, which is also an area where it had great success. The firm also says that, in 2017, it raised the first compliant tokenized quantitive crypto fund, which was also among the first security tokens. The token, known as PRTS token, is now held by investors in 97 countries, and it can be purchased for as little as $1 per unit, making it available to anyone and everyone in the world.
In the sixth place, we have Lottery.com, which is another one of the older securities that are still around today. Back when it was created, its purpose was to be used for more humanitarian reasons than most. Lottery.com wanted to raise money that can help solve problems that were (and still are) troubling humanity as a whole. These were pressing needs of people from all sides of the world, and that meant that the project will have quite a lot of work to do.
However, it did not shy away from the challenge, as it believed that there is no excuse for people in the 21st century to live such difficult lives that come down to bare survival. Dedicated to improving the quality of life of those who so desperately needed it, the project started using global charitable raffles, which allowed it to spread its idea globally and offer a 7% revenue share on ticket sales to its token holders, as a reward for supporting the project.
Since it went live, it also became one of the largest mobile lottery play services in the US. It also got approved on multiple sites, and it offers lottery results in over 30 countries as of 2022.
7. Aspen Digital
Nearing the end of our list, we have an innovative, technology-driven digital asset management platform known as Aspen Digital. This is a company that was launched only a year ago, in 2021, but it attracted quite a lot of attention thanks to its comprehensive and easy-to-use solutions for money managers and expert investors.
The firm has attracted everyone, including external asset managers, investment advisors, wealthy individuals, family offices, securities brokers, and even private bankers. The main benefit of working with Aspen is the fact that it offers a complete digital asset product shelf with nothing more than one single account required.
Its idea is to combine traditional finance and blockchain technology. In addition, it also has a dedicated team that can help new clients with the onboarding process and strategy execution.
Finally, we have INVAO — a project that features a security token that represents a pool of selected blockchain assets. The project held an STO regulated by Liechtenstein’s FMA, and it opted to provide this kind of model because it wanted to ensure that investors would have confidence in its product. In addition, the model also provides high security to those who invest into it.
The company claims that all blockchain investments are monitored by professional eyes, meaning that it offers actively managed digital asset portfolios, featuring expert investment approaches that were tested and proven as reliable and functional. Its main goal is for its asset to outperform Bitcoin in all market cycles, bullish and bearish alike. This competitiveness regarding the quality of its portfolio and its management is what has drawn many to the company, and we believe that it might be something for you to consider, as well.
With that, we end our list of the top 8 digital securities to keep an eye on in May 2022. As you can see, there are some rather diverse projects out there that show very clearly that there is something for everyone. All you need to do now is explore these projects, and others of their kind, on your own, and select one or more to invest into, provided that you find them worth investing in.
The list above should be a good place to start, but other than that, we encourage you to do your own research. You might agree with our assessment and decide that the listed securities are excellent investment opportunities, or you might decide that there are other projects that are better, and that is perfectly fine. Just make sure to conduct your own due diligence and ensure that you know what you are doing and why you are doing it before you finally make your move.