Learn how the most attractive product for the traditional financial market investor works.
With a timid emergence in 2009, during the middle of the economic crisis, the crypto market began to exist through the creation of Bitcoin: the first cryptocurrency to circulate in the digital environment and which, to this day, continues to be traded without interruption.
After 2017, the alternative and decentralized system of the crypto-active universe started to gain more and more popularity, especially in 2020, during the Covid-19 pandemic, as cryptocurrencies proved to be a solution for some weaker fragments of the global economic situation.
Since then, the project has been gaining notoriety and space on the web, giving rise to hundreds and thousands of new current assets.
But even with the relevant history in recent years and the increase in demand, the crypto market still causes doubts and fears in investors, especially those native to the traditional financial market.
By understanding that the excess of information about crypto assets can end up confusing those who are in the process of understanding the market, we decided to talk about the SOV Token, one of the best projects for those who want to start in this universe.
Want to understand why this token is attractive to new investors in the crypto market? Read the rest of the article!
What is a Token?
The English language word means token or token, but in the cryptocurrency market, it takes on another definition. In short, a token is a digital representation of an asset — money, property, investment.
They are digital assets, created to be used within the ecosystem of an existing project. In other words, they do not need to have their own blockchain, like cryptocurrencies.
In other words, tokens are digital representations of real assets. Their financial value depends on the value of the asset they represent.
What is the difference between token and cryptocurrency?
The main difference is in terms of creation: cryptocurrencies are native to their blockchains and are developed in a complex way, while tokens are easy to create and need to be embedded in an existing blockchain.
But token and cryptocurrency also have different attributions:
Cryptocurrencies can
- Be used in financial transactions;
- Used as stores of value;
- Compose an investment portfolio.
Tokens can
- Digitally represent some good of value
- Be used to keep blockchains running;
- Activate app resources.
SOV TOKEN | How Does it Work?
The Store of Value Token is a Decentralized Autonomous Organization (DAO) governed by its community of token holders. Based on a smart contract that automates the allocation of resources, the SOV is the token responsible for guiding governance by representing its underlying assets.
With high potential for appreciation, the token still brings the simplest and safest way to store and optimize long-term capital value.
SOV Token performs allocation in safe assets with appreciation over time, such as Bitcoin and Gold, and also caters to short and medium term investors, especially due to its flexibility of daily liquidity.
SOV TOKEN | Allocation Strategy?
It is common knowledge that any fiat currency, no matter how strong it is (such as US$, EUR, etc), depreciates over time, and suffers a strong political and fiscal impact.
The allocation of 50% in Bitcoin and 50% in Gold, safe assets that appreciate over time, is an important strategy to reserve value and permanently appreciate capital.
In addition, while Bitcoin investment has great upside potential and short-term volatility, exposure to Gold investment balances out the Store of Value Token’s level of risk.
SOV TOKEN | How are the returns?
With market capitalization still much lower than traditional assets that have much lower economic fundamentals, Bitcoin results in ample growth potential along with Gold.
Considering the partial allocation to Bitcoin, SOV represents an excellent option for traditional market investors who wish to have exposure to crypto-actives on a more moderate basis, supplementing the portfolio with a small dose of large upside potential.
Conclusion
Through the portfolio management we perform and the capital we invest in selected projects, we find sophisticated solutions in the market and grant their access to different investor profiles.
Aiming at the transformation of the market, we brought SOV Token, one of the most innovative projects that we present in our portfolio.
With high appreciation potential, the Store of Value Token brings the simplest and safest way to store and optimize the value of your capital in the long term.
Through the allocation in safe assets with appreciation over time, such as Bitcoin and Gold, the product is ideal for those seeking additional exposure in the crypto environment with the security of the traditional financial market.
Is SOV Token a good investment option for you? To invest, simply log in and register on our platform.
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