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Why Security Tokens don't Excite Me by gniksivart

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· @gniksivart ·
$2.39
Why Security Tokens don't Excite Me
I was on the hype train when I first heard of the possibility of Security Tokens coming to crypto. Why not take some profit in a bull market and buy some Apple stock when you have the chance. The best part is you won't have to buy 1 whole Apple stock you could buy 0.14523 Apple Stock.

I was so excited I thought Poly was going to the moon and decided to move 10% of my portfolio into Polymath. I later sold all my Poly last spring for a good profit and have kept an eye on Poly and any Security Token news I saw and have eagerly awaited Security Tokens ever since.

<center>![](https://cdn.steemitimages.com/DQmUMctKCpNbRwDwsTgjt4Ydbngw9JLNdRxJF7my9HZJncM/image.png)
[Source](https://pixabay.com/images/id-3033203/)</center>

That is until I read an article (or listened to a YouTube video, I can't remember otherwise I'd give credit where credit is due) explaining the writer could care less about Security Tokens. What!?!? Security Tokens are then next big move for crypto and it could possibly start the next alt season and take us to new all-time highs, what's not to get excited about.

Well he went on to do sometihng very few people in crypto do, he explained something logically with very little hype. He went on to say if we tokenize a million dollar home and 60,000 people each buy some of the tokens that home isn't going to become magically worth 2 million dollars since it's now a token instead of being bought by an individual or group of investors.

He admitted the frenzy around Security Tokens might cause, temporarily, for the "value" of that house to reach two million, he explained it will be short lived and the people that bought the 2 million dollar valuation of the home will never get their money back. 

Damn that guy for using common sense. That is probably why I immediately forgot his name I'm sure of it. In my opinion Security Tokens maybe good in that it will allow new investors to invest in opportunities they might not have before so potentially it could raise the price of said security by 10%.  with the new money flowing in. His point, however, was that we're not going to see any of these Securities do something crazy like we see in crypto were they can 10 - 100x in a week.

I'm still excited about Security Tokens, but I'm not planning to invest much money into them and will be happy sitting on the sidelines watching how they play out before making the jump in. What are your thoughts on Security Tokens? Scratching your head wondering what they are? Going all in when they're released because this is nonsense they're on a rocket ship to the moon? Or have a particular Security Token or sector you're keeping an eye on to invest in? Let me know in the comments below.
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vote details (52)
@apshamilton ·
$0.30
Security Tokens are just a hype name in response to SEC over-regulation. We have had security tokens for 200+ years. They are called shares, bonds, etc. 

Posted using [Partiko iOS](https://partiko.app/referral/apshamilton)
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@gniksivart ·
Exactly!

Posted using [Partiko Android](https://partiko.app/referral/gniksivart)
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@markkujantunen ·
Of course, the market cap of security tokens cannot be higher than the market cap of the underlying assets. Unless the underlying assets themselves are digital and thus capable of being transformed into distributed ledger entries, their ownership will be enforced using potential for violence by a centralized entity and not cryptography like on any traditional market. The market cap of all tokenized securities can never be larger than the market cap of the underlying assets but the more assets get tokenized, the greater the market cap can potentially be. The idea is not for wild speculation to drive asset valuations to the moon but increased liquidity making the playing field more level in terms of opportunities to participate in the market.
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@gniksivart ·
> The idea is not for wild speculation to drive asset valuations to the moon but increased liquidity making the playing field more level in terms of opportunities to participate in the market.

This is a great point that the other person I was listening to I don't think really talked much about. What happens to the price of assets when more just the "select few" have an opportunity to invest. 

It will be interesting to see what happens when security tokens start getting more and more popular, but I think what I learned the most was (and is good for any investing advice) keep a level head when they do come out.
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@markkujantunen ·
To the extent the values of some underlying assets are speculative to begin with, there will no doubt be speculative pumps.
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