Security tokens are one of the hottest deals in the crypto industry. Different security tokens are already available in the crypto industry, and many more are in the developing phase. So it makes sense that many investors seek the most potential tokens for making investments and generating profits.
However, there are several types of crypto tokens available in the crypto marketplace, and all of them are not with the same potential. This article will enlighten the best five security tokens in the crypto industry.
What is a security crypto token?
It is a digital form of traditional security assets. There are usually three types:
- Debt
- Equity
- Hybrid tokens
Traditional security assets include bonds, stocks, options, futures, and ETFs. So hypothetically, the tokenized version of any of these assets is a security crypto token. So it won’t be surprising if these security crypto tokens become competitors and alternatives to stocks and other security assets in the future. These tokens are not precisely pure cryptocurrencies like BTC or LTC, as pure cryptos run on their blockchains.
Meanwhile, security crypto tokens run on existing blockchains. Most companies use ERC-20 tokens that use smart contracts for executions, are compatible with Ethereum, and run on the ETH blockchain. These tokens enable learning from performance and also allow earning dividends.
The best five security tokens
There are many security tokens are available that are circulating in the blockchain industry; the best five among them are:
- BCap (BCAP)
- Polymath (POLY)
- Swarm (SWAM)
- Insight protocol (INX)
- Spice VC
BCap (BCAP)
Fully diluted market cap: no data
Live market cap: $26,848,000
BCAP, or blockchain capital, is maybe the first among the security tokens. They were the first organization to integrate blockchain technology into their network by starting accepting cryptocurrencies such as BTC as payment methods. There was an upgrade in BCAP last year with the help of Securitize to enhance the regulation of securities to process further. Brock Pierce, Bart Stephens, and Bradford Stephens are the co-founders of this platform that is not an issuance platform; they seek to make investments in other blockchain-based companies.
Does it have the potential to grow?
BCAP already has investments in more than 70+ companies, protocols, and tokens, including companies like Kraken, Ripple, Coinbase, and Circle. BCAP is a safer investment that has the potential to keep growing as the crypto industry continues to grow.
Polymath (POLY)
Fully diluted market cap: $440,660,713
Live market cap: $396,098,202
Polymath is a unique platform that proposes a bridge between the blockchain and financial securities. This platform provides technology to issue, create, and manage security tokens on the blockchain. Programmable tokens are more secure, liquid, and accessible than traditional forms of security asset ownerships. POLY is a currency available on many crypto exchanges, including DigiFlex, Binance, Gate.io, Crypto.com Exchange, and Pemex.
Does it have the potential to grow?
Security tokens have a tremendous market opportunity if these assets can overcome the financial world’s adoption. As the crypto-verse has become an important topic, many crypto investors anticipate a positive future for this coin POLY.
Swarm (SWM)
Fully diluted market cap: $1,735,380
Live market cap: $1,363,283
Swarm is a platform that provides SRC20 protocol and allows tokenizing of nearly any asset. They propose a 4-step process to digitize their assets from the release of the fund to the fundraising rules. This token SWM is currently available in many major exchanges, including LATOKEN, Txbi, Uniswap (V2), and Hotbit.
Does it have the potential to grow?
Swarm’s next focus is scaling through integration and collaboration, which they can count on wallets, custody providers, investment banks, and marketplaces. So this futuristic blockchain platform has the potential to grow in the future.
Insight protocol (INX)
Fully diluted market cap: $1,309,597
Live market cap: $121,954
Insight protocol or INX is a cryptocurrency that runs on the Ethereum blockchain. It is one of the best security tokens; the launching period is 2019, and it is currently available on many major exchanges, including Bittrex, OKX, and Hotbit.
Does it have the potential to grow?
INX is a potential investment that can considerably grow, and many crypto analysts anticipate the price may reach near $0.00151 per token within one year.
Spice VC
Spice is a liquid venture capital fund, and the Spice VC is a tokenized version.
Investments in this platform include:
- SAGA – an upcoming next stable currency.
- Slice – a real estate tokenization.
- ROX – commercial real estate tokenization.
- Arax – a digital securities exchange.
- Lottery.com – a security token of an online lottery.
- Bakkt – a digital assets security exchange company, the New York Stock Exchange (ICE) owners are the creator.
Does it have the potential to grow?
This token has the potential to grow in the future as it involves investing in profitable sectors, and the management team behind the project is remarkable.
Pros and cons
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Final thought
Finally, the security token sector is currently building up. These tokens can be attractive investment assets in the future and enable several options to generate income alongside traditional buy/sell.
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