The precise set of criteria that big investors will be looking for in a cryptocurrency are available in security tokens per Alex Miningham. Therefore, the security tokens are set to be the major investment target in the near future.
The CEO of Proof Network, Alex Miningham, has been keenly studying the market.
He further added that Proof Network is creating an enterprise-grade cloud computing platform which will be used in support of the global alcohol industry.
The client base of Proof Network consists of more than 250 retail stores with an annual sales of $1.4 billion.
Miningham has the required expertise to talk about investor perception. In the past few months, Miningham has spoken to several crypto investment enterprises which included family offices, hedge funds, venture capitalist firms, and angel investors. He shared the valuable insights he had from these experiences with us.
Traditional investors find security token offerings appealing for several reasons. Miningham as well pointed to how several investors in the blockchain industry are cautious about investing in ICO due to the price volatility in the past few months. Investors are hesitant, and he says they are looking in to several characteristics when investing in a project.
When investing in a project, the investors are looking at an experienced team, a product that fits in to the market demands, a scalable business model, real-time blockchain utility, appropriate structuring, a compliant offering with Reg D or Reg S, a sensible fundraising plan which makes granular use of funds, reputed legal counsels and reputed investors.
The characteristics that Miningham pointed out as those that investors are looking for includes the criteria that traditional investors will be looking for. And they are looking for equity for their investments, and this is exactly that which one will get when they invest in security tokens.
These investors will need to get their equity in the early stages of their blockchain technology-based companies when they invest in security tokens.
He further explained the benefits of tokenized equities. If investors should be seriously interested in STOs, there need to be certain features that will completely change the whole game of traditional financial securities. Such advantages are surely there in security tokens. And, the liquidity factor provides for broader access to capital for the security token issuers.
The token fees are comparatively less in comparison to traditional models.
Tokenization permits for fractional ownership. This eventually leads to decreased barriers from investors and many investors will participate due to the affordability of investments.
The likes of these can be seen from the asset tokenized New York property offered by Leaseum Partners. They provide with flexible and efficient access to US real estate properties.