Security tokens are one of the hottest topics in crypto today, with many different types of security tokens already in existence or being developed at this very moment. More than 500 different kinds of security tokens are available, with more on the way as more companies and individuals realize the potential of these unique digital assets.
Let’s take a look at some of the most exciting top five security tokens available to buy and some of the big projects that you can look forward to in the future.
How does it work?
Essentially, a security token is one that “securitizes” a real-world asset. So the coin is backed by an asset with a tangible value, unlike an ICO that involves utility coins that might accelerate in value but can also turn into Ether.
These tokens enable assets to become much more liquid, allowing fractional ownership of assets. Their blockchain-based structure means the ownership rights are transparent and easily verifiable.
Top three things to know before starting:
- Security tokens have the potential to transform traditional securities markets.
- With real estate security tokens, we could have smoother, faster sales, unlocking liquidity like never before.
- With blockchain technology, future security token markets could stay open 24/7.
Best security tokens to buy in 2022
Let’s take a look at the best five security tokens to invest in.
- Swarm (SWAM)
- Polymath (POLY)
- Insight protocol (INX)
- Compound (COMP)
- Maker (MKR)
Swarm (SWM)
Swarm is a non-profit foundation dedicated to building an open infrastructure for the new, emerging digital securities economy. It is a protocol offering tools to support the digitization of assets or other things of value. It ensures compliance mechanisms and makes the interfaces and infrastructure accessible and open to all. Swarm’s three primary pillars are tokenization, compliance, and governance.
Price history
Today, its price is $0.012539940666, with a 24-hour trading volume of $5,974.75. It has a circulating supply of 79 Million SWM coins and a total supply of 100 Million.
- SWM hit an all-time high of $2.16 on Jan 28, 2018.
- SWM had an all-time low of $0.000000000200 on Apr 13, 2022.
Where to buy it?
It is traded on three exchanges, with the top exchanges being Hotbit, LATOKEN, and Uniswap.
What are the perspectives of the SWM?
According to our technical analysis of past price data of SWM, in 2022 its price is predicted to reach at a minimum level of $0.015. The SWM price can reach a maximum level of $0.018 with the average trading price of $0.016.
Polymath (POLY)
In 2017, following a highly successful ICO, Polymath launched its services. It is a decentralized protocol-plus-platform that facilitates the creation of security tokens. The platform aims to bring the multi-trillion dollar financial securities market to the blockchain.
Polymath’s global platform provides legal and technical solutions for securitizing bonds, stocks, and other assets on a blockchain. It is a self-serve platform – security token issuers can use the Polymath Token Studio to create a security token in ten minutes.
Price history
Today, its price is $0.220315 with a 24-hour trading volume of $20,721,594. It has a circulating supply of 900 million POLY coins and a total supply of 1 billion.
- POLY hit an all-time high of $1.59 on Feb 20, 2018.
- POLY had an all-time low of $0.011006058586 on Mar 13, 2020.
Where to buy it?
It is traded on 29 exchanges, with the top exchanges being ZB.com, Nami.Exchange, and Upbit.
What are the perspectives of POLY?
According to our technical analysis of past price data of POLY, in 2022, its price is predicted to reach a minimum level of $0.25. Its price can reach a maximum of $0.28 with an average trading price of $0.26.
Insight protocol (INX)
Insight Protocol (INX) is a cryptocurrency launched in 2019 and operates on the Ethereum platform. It has a current supply of 2,000,000,000 with 183,285,663.4420004 in circulation.
Price history
Its price is $0.000390803243 with a 24-hour trading volume of $49,155.59. It has a circulating supply of 0 INX coins and a total supply of two billion.
- INX hit an all-time high of $0.551177 on Jun 25, 2020.
- INX had an all-time low of $0.000200752774 on May 12, 2022.
Where to buy it?
It is traded on 0 exchanges.
What are the perspectives of the INX?
As per the forecast price and technical analysis, in 2022, its price is predicted to reach a minimum level of $0.00053792. The INX price can reach a maximum level of $0.00068266 with an average trading price of $0.00055408.
Compound (COMP)
The Compound is a series of decentralized interest rate markets enabling clients to deposit and borrow ETH tokens. It is an ETH-based security token serving the role of governance token of the Compound protocol. It has a liquidity fountainhead for the users to lend and borrow cryptos. It allows users to obtain cTokens as the return against their deposit which they can exploit to purchase other cryptos at the Compound platform.
Price history
Today, its price is $56.82 with a 24-hour trading volume of $47,182,122. It has a circulating supply of 6.9 million COMP coins and a total supply of ten million.
- COMP hit an all-time high of $910.54 on May 12, 2021.
- COMP had an all-time low of $54.91 on May 12, 2022.
Where to buy it?
It is traded on 0 exchanges.
What are the perspectives of the COMP?
According to our technical analysis of past price data of COMP, in 2022, its price is predicted to reach at a minimum level of $81.19. The COMP price can reach a maximum level of $93.54 with an average trading price of $84.43.
Maker (MKR)
Maker is a software platform under Maker Protocol that expedites the clients to issue and monitor DAI. It is based on the ETH blockchain and a fundamental project comprising the decentralized organization MakerDAO. It possesses its native MKR, the ERC20 token.
MKR security token is to assure the DAI remains pegged by the USD. It is known as the dual-crypto technique, which strengthens and holds back the volatility in providing a more secure project to the users.
Price history
Its price today is $1,214.33 with a 24-hour trading volume of $72,620,388. It has a circulating supply of 900 thousand MKR coins and a total supply of 978 thousand.
- MKR hit an all-time high of $6,292.31 on May 03, 2021.
- MKR had an all-time low of $168.36 on Mar 16, 2020.
Where to buy it?
It is traded on 95 exchanges, with the top exchanges being AAX, Dcoin, and GokuMarket.
What are the perspectives of the MKR?
According to our technical analysis of the past price data of MKR, in 2022, its price is predicted to reach a minimum level of $1,572.58. The MKR price can get a maximum of $1,726.63 with an average trading price of $1,633.43.
Pros and cons
| Worth to buy | Worth to getaway |
| They improve market efficiency. | They involve secondary trading market restrictions. |
| They reduce investment thresholds. | Security tokens can only be transferred via licensed platforms. |
| They allow traditional business transactions to be tokenized while still meeting the regulatory requirements for the industry in question. | One of the most significant drawbacks to security tokens is the inability of non-accredited investors to own them. |
Final thoughts
The main challenges faced by the security token industry are education, adoption, and interoperability. We can conclude that despite the difficulties encountered by the platforms and exchanges addressed in this feature, the adoption, even if slow, is imminent.
Even if security tokens don’t disrupt the world of finance as ICOs did, they will transform how we raise and invest money.