Security tokens are the point of discussion this year. The New York-based company – Ibinex which provides all cryptocurrency solutions to its clients is ready to give the advantage of security tokens to its customers.
Security tokens are the financial securities which are compliant with SEC regulations. These tokens provide few rights like dividends, share rights, buy back rights to its holders. These rights are mentioned in the smart contracts, and the tokens are traded on the cryptocurrency exchanges.
It is worth noting that the tokens which pass the Howey test, are viewed as security tokens. They gain their value from any tradable asset. As they are considered securities, they are subject to regulations. If they fail to follow the regulations they could be subject to penalties.
Ibinex CEO, Simon Grunfeld said, “Our model is not a utility token, hence is different from the majority of the models in the market. Security model allows owners to own an asset without taking its actual possession. Though most of the companies in the market issue utility tokens which are easy to set up and monetize, the cost of ownership is confined to the usage and utility. On the opposite side, security tokens need immense regulatory compliance, and it secures the profit sharing of our company which attracts more investors.” Security tokens are cryptogenic tokens that pay dividends to the holders. Security tokens are preferred over utility token because:
1) The market is facing the deficit of accountability because of the lack of regulations. With the introduction of security token, the trust of the investors will somehow strengthen which will attract more and more investors.
2) Security tokens are most cost-effective, and it will also bring ease for investors to liquidate the security tokens.
3) The number of companies wanting to benefit from blockchain is increasing, and these security token pave a path where they can easily get engaged in the market.
4) The execution time is less as there is no involvement of the middleman.
Considering the present scenario of the market security tokens have a less share of the market in comparison to utility tokens and Ibinex is one among the few companies that have implemented the security tokens in its functionality. To know more visit our Website: https://ibinex.com/ Meet the Team: https://ibinex.com/who-we-are/ Connect on Facebook: https://www.facebook.com/ibinexexchange
To know more visit our Website: https://ibinex.com/
Meet the Team: https://ibinex.com/who-we-are/
Connect on Facebook: https://www.facebook.com/ibinexexchange
Follow us on Twitter: https://twitter.com/ibinexexchange
Read our Whitepaper: https://ibinex.com/Ibinex-Whitepaper-Final-Web.pdf
Join us on Telegram: https://t.me/ibinex
Contact Us Directly: https://ibinex.com/contact-ibinex/
