What type of investors are active in the STO market?

A list of different types of investors that are interested in security token offerings.

The types of investors that will come to the early security token market will mostly be those that are interested in the alternative investment category. Crypto-investors can be early adopters but as the security token market develops more traditional investors will come into play.

Accredited / Well-informed investors

The primary accepted investors for early Security Token Offerings will be accredited/well-informed investors. The definition of these investors varies by jurisdiction but they are generally individuals, wealthy enough or knowledgeable enough to manage their own money and take on the risk of losing what they invest.

Broker Dealers, Investment Banks, Assets Managers

These are the parties that work with, advise and/or manage their clients money whether it’s individuals or companies.

Cryptofunds

These are hedge funds that are already specialized in investments into blockchain activities such as direct equity in blockchain companies and frequently participating in token sales.

Retail distributors

The way to obtain access to the average retail investor is to work with institutions who traditionally have access to retail investors such as banks and insurance companies.

Syndicates/Pools

Large groups of investors, especially from the crypto space, have come together to form investing syndicates or pools.