The crypto market has long been blamed for its volatility and uncertainty, driving many away as a result. The recent market crash led investors to lose millions of dollars, worsening things. That’s when many started looking for more stable options, particularly tokens/coins with real-life value. And security tokens became the primary choice for investors.
What are security tokens?
Security tokens are the ones that provide fractional ownership of an asset, similar to a stock in the equity market. Anyone holding a security token shares ownership along with the other token holders, and each receives returns depending on the business model of the project. For instance, a mining company issuing security tokens can provide fractional ownership to investors and share a part of the profit. This way, the investors and the project allocating the token benefit from the scheme of things.
Security tokens are regarded as the future of the blockchain space, with more and more investors moving toward it. It can be primarily attributed to the inherent value of the token, which makes investors trust it over projects, coins, and tokens with no real backing.
What are the benefits of security tokens?
Here are some of the significant benefits of security tokens:
- Relatively stable: Since there is an asset with real value backing it, security tokens are relatively more stable than other tokens. For instance, many projects issue tokens with no utility, and they could all collapse in one go if the market remains unfavorable. Though, that’s not the case with security tokens because they do not depend on a single market but multiple ones.
- Helps projects easily raise funds: The demand for security tokens remains high for various reasons, thus making it easier for projects to raise funds. The idea of fractional ownership is a significant factor that draws investors.
- Will remain relevant in the years to come: Every domain of the blockchain space has had its days, but the market started to slow down sooner or later. For instance, many vocal critics of Play-to-Earn gaming point out how the idea is non-profitable, and most projects will go bankrupt or shut down operations within a few years. However, security tokens, owing to the concept of fractional ownership, will remain relevant for as long as blockchain dominates the world of finance. Anyone investing in it today can expect stable returns in the coming years.
Where do Kodo Assets fit in?
Kodo Assets has, of late, emerged as one of the most popular security tokens in the space. The reason, it taps into one of the most profitable markets, i.e., Real Estate. Moreover, the policies implemented by Kodo Assets are all user-centric and ensure the well-being of token holders and, at the same time, are project-oriented.
With the security tokens issued by Kodo Assets, investors receive returns accrued through yields and rents from properties. Remember, Kodo Assets does not give ownership of the property, but it’s still categorized as a security token owing to it following the same idea.
The project has already set up a modern and sophisticated property in one of the prime locations of São Paulo, Brazil, an emerging real estate market that witnessed an appreciation of 20% in 2021, one of the highest worldwide.
Kodo Assets plans to issue 25,000 security tokens, each with an initial value of $140, which is quite reasonable given the market conditions and the potential held by the project. If one were to look at the estimates released by experts, Kodo Assets seems to be one of the most viable and profitable security tokens up to date.
The project is still in the initial stages, with the experienced team behind it chalking out the final details before the release of the token. But the hype it has managed to create is phenomenal, even by the standards of a security token.
Another significant benefit of investing in Kodo Assets is that users directly receive returns in digital wallets, thus eliminating the need to share banking details or other IRS-related information.
Kodo Assets’ integration of real estate and blockchain could be regarded as one of the most exciting ventures, with both investors and experts all excited about it. Only time will tell whether the hype surrounding it remains the same, decreases, or increases. But it will undoubtedly give rise to a new domain in the blockchain space.
To help potential investors understand more about security tokens and securitized real-estate tokenization, Kodo Assets has released its first e-book which is available for download
To find out more about Kodo Assets, visit the official website
Also, follow Kodo Assets on all social handles and interactive channels to stay updated with the latest developments.