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Which types of digital assets can be considered as marketable securities?

avatarXDeveloperXDec 26, 2021 · 3 years ago3 answers

In the world of digital assets, there are various types of cryptocurrencies and tokens. However, not all of them can be considered as marketable securities. Which specific types of digital assets can be classified as marketable securities?

Which types of digital assets can be considered as marketable securities?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    When it comes to digital assets, marketable securities refer to those that can be easily bought and sold in a public market. This includes cryptocurrencies like Bitcoin and Ethereum, as well as security tokens that represent ownership in a company or project. These marketable securities are subject to regulations and can be traded on authorized exchanges. It's important to note that not all digital assets fall under this category, as some may be considered utility tokens or non-fungible tokens (NFTs) which have different characteristics and purposes.
  • avatarDec 26, 2021 · 3 years ago
    Digital assets that can be considered as marketable securities are typically those that meet certain criteria set by regulatory bodies. These criteria may include factors such as the asset's liquidity, tradability, and whether it represents ownership in an underlying asset or project. Examples of marketable securities in the digital asset space include security tokens issued through initial coin offerings (ICOs) or security token offerings (STOs), as well as cryptocurrencies that have been deemed as securities by regulatory authorities. It's important for investors to understand the classification of digital assets as marketable securities, as it can impact their legal rights and protections.
  • avatarDec 26, 2021 · 3 years ago
    According to BYDFi, a leading digital asset exchange, marketable securities in the digital asset space include security tokens, which are tokens that represent ownership in an underlying asset or project. These tokens are subject to regulatory oversight and can be traded on authorized exchanges. Additionally, cryptocurrencies like Bitcoin and Ethereum, which have a high level of liquidity and tradability, can also be considered as marketable securities. It's important for investors to conduct thorough research and due diligence before investing in digital assets, especially those classified as marketable securities, to ensure compliance with applicable regulations and to mitigate risks.