What is tokenization and what precaution 1 you should take

Many investors still don’t know what tokenization is about, but it’s a matter of time to surrender to these assets that are already present in many around the world.

 

Tokens have grown in popularity in recent months for bringing more security, transparency and practicality to financial transactions. It’s such an important move that it even gained a name: tokenization.

Today, it is possible to tokenize different assets, from football clubs to works of art, through stocks, real estate, traditional assets and, of course, money. But, like any novelty, it is necessary

o deepening knowledge and knowing all the details before to log in to avoid possible problems in the future! Check out the main precautions for this increasingly important segment in the global scenario:

 

What is a token?  

First, it is necessary to answer the fundamental question: after all, what does token mean ? In short, it is a digital representation of a real asset, that is, one that exists in the physical world. Basically, it’s a blockchain-based technology. able to digitize different assets and assets into “small parts” to facilitate their trading on the web.

Each token is governed by an intelligent contract, which will determine the specific operating rules for the scanned asset. In addition, those involving securities, such as shares, need to be regulated by competent public bodies.

As the possibilities for tokenization are varied, tokens are classified into categories according to their functionality and types of use. Currently, there are four major groups:

 

 

  • Security Tokens: é a principal categoria, associada a ativos mobiliários, ou seja, aqueles capazes de gerar rendas e que representam a posse real de um bem (ou pelo menos parte dele). Em resumo: o usuário pretende ter algum tipo de retorno financeiro em sua negociação/aquisição. Ações, imóveis e demais investimentos físicos se transformam em security tokens. Entretanto, é preciso ter atenção, porque eles estão sujeitos à legislação que rege as movimentações financeiras.  

 

  • Utility tokens: como o nome em inglês sugere, ele tem alguma utilidade. Não necessariamente possui um valor monetário. É bastante utilizado dentro de um ecossistema específico, como o varejo, permitindo que os usuários possam adquirir produtos ou serviços por meio desses tokens, como cupons de desconto, programas de engajamento e fidelização, entre outros.  

 

  • Equity tokens: são bastante utilizados no ambiente corporativo e funcionam de modo semelhante às ações. Com eles, empresas que precisam de investimento negociam tokens que concedem participação societária e dão direito aos lucros futuros. As regras, evidentemente, são definidas nos contratos inteligentes e ajudam a potencializar a busca por recursos financeiros. 

 

  • Token não fungível (NFT): representa um ativo digital único que não pode ser substituído, como normalmente ocorre em negociações financeiras. Assim, ele é bastante utilizado como ferramenta de comercialização e proteção de bens com propriedade intelectual, como obras de arte, patentes e até participações em clubes esportivos!  

 

  • Governance tokens: Do not necessarily have a monetary value. It is used within a specific ecosystem, allowing a chain of employees and people to have a voice and to participate in decision-making within a company.

 

What are the benefits of tokenization?  

Two pillars ensure tokenization grows and becomes popular. The first one is greater liquidity for investors and companies. After all, negotiation is simple, fast and transparent, governed by an intelligent contract and with great returns for both buyers and sellers.

In addition, it is a more democratic form of investment, allowing users who are unable to invest in traditional assets to buy some tokens – there are modalities that are negotiated from US$20.

 

And what are the cares? 

Tokenization is in fashion because it digitizes different assets, but some precautions are necessary to avoid risks. Token trading may be simple, but ensuring this asset digitization is a complex technological process.

In order for a given asset to be transformed into a token, it is necessary to carry out a rigorous analysis of documents and compliance. Some categories need to be regulated by specific legislation. Therefore, be wary of companies that promise to tokenize everything and choose fintechs that have expertise and know-how in the area.

 

Cassio Krupinsk

CEO of BlockBR, fintech of digital assets and investments

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