Security Tokens: The Future of Crypto?

2017 marked a big year for crypto. The overall market saw astronomical growth and ICO’s charged into the marketplace. On the other hand, 2018 is shaping up to be the year of maturation for the industry. This article is intended today to shed some thought and light on security tokens and what their place might be in the crypto space going forward. ICO Wingman is an ICO and Rating platform that make’s the ICO evaluation process both seamless and transparent like never before. The platform offers a completely new way to clearly evaluate the latest ICO projects with community and expert reviews from only the top industry authorities.

The United States Securities and Exchange Commission (SEC) has made it fairly clear in their approach to the marketplace at this point. While regulation remains a hot topic for debate, it remains fair to wonder if security tokens are the future of the space.

Tokens today are being broken down into two categories in utility tokens and security tokens. The basis in helping determine this difference by the SEC is The Howey Test. The Howey Test comprises of 4 questions that are used to help determine if a token is a security. In addition, there are many different regulation-filing options that exist as well with the SEC. Some big-time ICO projects such as Telegram had their offering only include U.S. Accredited investors to allow them to file under 506c with the SEC.

In the crypto world, the main issues for security tokens remain a lack of liquidity for investors, a lack of exchanges to trade security tokens and overall lack of regulatory clarity. Yet, projects are trying to go the route of being compliant such as with Polymath, a platform to launch security tokens.In addition, other projects such as security token exchanges are cropping up as well. But many challenges remain for the future of security tokens.

Overall, the crypto space appears to be in the next phase of growth with security tokens appearing to be on the horizon as a part of the future of the space.

*Please note that this article is meant for informational purposes and does not constitute financial advice.

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