These are tokens linked or used in a similar way to traditional financial assets such as bonds, shares, promissory notes, among others, and that consequently, represent for their holders the possibility of acquiring benefits in the future from a third party.
These may be initially distributed from an “Initial Coin Offering” (ICO) or may be created in a “Security Token Offering” (STO).
Among its main advantages are that its linkage with other financial assets can mean less volatility, in addition to the fact that its implementation builds a bridge between Blockchain technology –As a decentralized form of asset management and storage– and the traditional financial world.
It is worth mentioning that in the US these types of tokens are legally regulated by the “Securities Exchange Commission” (S.E.C.), and that this institution allows us to orient ourselves about them through the “Howey Test”, given that if a token meets the characteristics indicated by it, it means that it is a security token according to current US legislation.
Of course, at Ccoins we have within our catalog some of the best stable tokens in the Cryptocurrency ecosystem, such as Tether, USD Coin and DAI.
Investing in some tokens can bring some advantages that every investor should take into account, for example, sending large and small amounts of money from one country to another very cheaply, or using it strategically by freezing your investments with stable tokens such as the ones we own in Ccoins.
Freezing is a simple strategy but one that you must know how to use, since freezing consists of exchanging an investment in a Cryptocurrency for a stable token such as Tether, USD Coin or DAI, and this movement must be done exclusively when a general drop in the Cryptocurrency prices is detected.