{"id":598,"date":"2018-07-18T10:11:59","date_gmt":"2018-07-18T10:11:59","guid":{"rendered":"https:\/\/blockchainappfactory.com\/blog\/?p=598"},"modified":"2018-12-10T12:31:01","modified_gmt":"2018-12-10T07:01:01","slug":"securing-a-place-for-security-token","status":"publish","type":"post","link":"https:\/\/www.blockchainappfactory.com\/blog\/securing-a-place-for-security-token\/","title":{"rendered":"Securing a place for security tokens"},"content":{"rendered":"

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When the world was tuckered out due to the overload of cryptocurrency transactions, there came a unique offering – Security Tokens. Technological advancement never fails to fascinate us. With ICOs being a thing of the past, we can look forward to an incredible invention in the cryptocurrency industry. <\/span><\/p>\n

STOs: What are they?<\/b><\/p>\n

Security tokens are backed by real-world assets, such as profits like dividends, shares and so on. The value is gained from an external tradable asset and becomes subject to federal regulations. These tokens are SEC complaint.<\/span><\/p>\n

A distinguished offering<\/b><\/p>\n

The security tokens undergo a test before being accepted in the market. The Howey test is conducted, where there are 2 questions and both answers need to be a \u201cyes\u201d to be accepted. This makes it different from ICOs, which follows no federal regulations. <\/span><\/p>\n

The art of identifying<\/b><\/p>\n

It\u2019s important to be aware of the pros and cons of the tokens before buying them. The motive is to gain profits in the long run. The token is seen as having a use value (usefulness of a commodity) to the buyer. It\u2019s also important to know if the values are created by a single entity or a group. <\/span><\/p>\n

What can STOs be?<\/b><\/p>\n

The tokenized version can be of the following assets:<\/span><\/p>\n