The STO market fascinates more and more different categories of investors, interested in the world of blockchain as a method of the asset distribution.
In fact, while traditional finance follows the standard investment process, with security tokens, the same process sees the integration of the blockchain technology that records and stores, within its distributed ledger, all assets in digital format.
Thanks to blockchain, the entire finance sector is renewed in terms of transparency, speed and security for data management and therefore, eliminating traditional bureaucracy, also in terms of costs.
STO investors vs traditional finance investors
Investors in digital assets or STOs are, without a doubt, all those who are inclined to use the blockchain for the distribution of the assets themselves.
This means that there is no unique formula to identify STO investors, but they will be categorized according to their own preferences in terms of return risk, just as it works in traditional finance.
In essence, it all depends on the type of financial product that the investor has chosen to purchase and therefore on the underlying of the reference asset.
To give a more concrete idea, startup investors that could be venture capital or the retail market of crowdfunding platforms would remain with the same high risk propensity profile, even if the assets purchased were to belong to the world of STO.
On the contrary, investors in the real estate sector, such as family offices, pension funds, restructured funds, real estate investment funds or real estate trusts, would remain with the same profile of propensity to risk return lower but also more safe, even if the real estate project was digitized, thus represented by security tokens.
A particular case, obviously, is covered by the crypto investor, the early adopter of the cryptocurrency world, which with the evolution of the ICO (or Initial Coin Offering) system, now follows the STO model, finding the right compromise between crypto sector and regulated digital finance.
Blockchain and STO: the way to democratize investments
The development of STOs is primarily aimed at facilitating investment by increasing the number of players. This is a real paradigm that revolves around three focuses: technology, law and finance.
With the use of the blockchain, in a regulated way, traditional finance is completely revolutionized both because it is more efficient and because it democratizes access to projects by investors.
In fact, if before, for some categories of retail investors, it was difficult to access some projects (such as start-up financing in the early stages) now, thanks to the use of decentralization technology, the game is easier.
Not only, thanks to the STO model, on the other hand, even entrepreneurs who want to raise capital will be able to meet more sources than traditional finance, accessing a democratization of early-stage finance.
Distribute, decentralize and democratize investments are the priorities of those interested in blockchain technology, remaining fascinated by the benefits obtained and becoming an STO investor.
Access EDSX's dedicated section on how to become an STO investor and access existing primary market and exchange projects to start trading with your tokens.