Summary: how and why invest in security tokens

Apr 22, 2021

We share with you some of the ideas that the participants in our round table commented on how and why invest in security tokens, with guests Félix Fuertes, Co-Founder & CEO of Formacioneninversion.com, and Rodrigo Ocejo, Founder & Chairman of Kuspit Brokerage Firm and Managing Partner of Avalancha Ventures.

Investing in security tokens allows access to asset-backed returns, which offer security. Tokenization makes it possible to simplify the process of selling certain assets that may otherwise be involved in complex administrative processes. In addition, the tokenized asset benefits from the liquidity provided by the digital world.

The great advantage of tokenization is that the underlying asset complies with all relevant administrative and regulatory processes. The token that represents it, although it complies with current regulations, as is the case with tokens for sale in Token City, benefits from greater flexibility and efficiency.

Tokenization also allows practically anyone who wants to invest in assets that until now were only accessible to institutional or qualified investors. It also allows access to financing to a much wider range of companies. Tokenization on blockchain lets any company carry out the equivalent of its own IPO, without having to go through the very complex and expensive process that listed companies must go through.

Most of the societal business fabric is made up of SMEs that do not have the resources and infrastructure necessary to go public. Rodrigo Ocejo gave the example of Mexico: In an economy of 1.3 trillion, with about 6 million SMEs, there are only 150 companies listed on the two stock exchanges that exist in the country. With such a huge gap, "I don't think tokenization is only a potential replacement for the traditional stock market. I think it creates a new, wide-ranging niche, "commented Rodrigo.

In the world of tokenized assets there exist assets for practically any investor profile. Both those looking for a fixed income, who might invest in a mortgage debt portfolio, and those who would rather buy a token that represents biotech startups. When investing in security tokens, it is important to get an adequate image of the asset represented by the token that is acquired: what is its profitability, what the sector is, the expected risk.

Entra en la nueva economía tokenizada

Enter the new tokenized economy

Token City is the ultimate bridge to the tokenized economy (tEconomy), in which tokenized companies (tEnterprises) create their cryptoasset markets (tMarkets), open to global investors (tCitizens).

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