As explained in my previous post, the security token industry is still at a very early stage, yet there are already plenty of participants engaged in the security token business and therefore plenty of investment opportunities. Investing right now requires a thorough analysis of each project in order to find candidates that have the highest potential to succeed and give back the most to investors.
Here are some of the criterias used while analyzing potential investment :
- Competition : Is the company amongst the first movers? Does the competition look stronger/weaker/on the same level? Is there room for more than one player?
- “Reward” model : What do we get in exchange of our money? Equity shares, security tokens, utility tokens, voting rights,…? How will our investment generate profit? Dividends, fees redistribution, debt interest payment,growth of the network/platform,…?
- Accreditation : Are investments open to non-accredited investors? To know more about accredited investors
- Partnerships : Was the company able to establish strong partnerships?
- Communication/Marketing : What is the marketing budget of the company? What have they done already? Was it efficient? Let’s not forget that the hype factor is really important in the cryptoworld. Is the community behind the project large enough?
The following list provides links to analyses of projects related to security tokens. It will regularly be updated. Please note that the list isn’t restricted only to projects that have high potential from my perspective of retail investor.