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3 Reasons to Buy Sologenic

3 Reasons to Buy Sologenic
Written by publisher team

The world of finance is changing. Going solo with one broker or investment strategy isn’t enough anymore. Sologenic (CRYPTO: solo) It creates a new and diversified ecosystem that allows investors to invest in tokenized stocks, ETFs and other assets. This network is based on XRP (CRYPTO: XRP) Ledger, allowing investors to trade these assets using XRP or SOLO tokens.

The security token space is one that should be closely monitored now. Sologenic is a small but growing venture eager to gain market share in this world. Over the past month, SOLO tokens have been 10 packing bags for investors who have stuck to the interest that this token offers.

Here are three reasons why Sologenic is a decentralized financial game worth taking a look at right now.

Image source: Getty Images.

1. Sologenic is a symbol of traditional origins

Sologenic allows investors to trade tokenized stocks, ETFs, and other assets. In fact, there are more than 40,000 different securities available for trading at the moment.

Sounds cool, but as we’ve seen with other crypto networks like Tezos (CRYPTO: XTZ)There is competition in this world.

However, Sologenic has popped up on my radar for this network’s “proof of solvency” mechanism. This is something unique to the Sologenic platform at the moment, but I think its adoption will increase over time.

Essentially, this “proof of solvency” mechanism provides a means for anyone to audit Sologenic’s reserves, and confirm the value of their underlying assets. By proving the solvency of digital asset holdings on the blockchain, investors can rest assured that their deposits are safe on the Sologenic Network. This transparency provides a level of risk management functionality that many blockchains do not provide. Sologenci claims that user anonymity is not affected by this asset validation mechanism.

2. Sologenic will release an encrypted credit card

Cashback credit cards have provided tremendous growth to credit card providers for decades. Sologenic hopes to introduce the same concept to the crypto world.

Via SOLO cards, crypto investors will be able to spend their cryptocurrency as they would with their fiat money in a bank account. Like other traditional credit cards, SOLO cards offer rewards of up to 2% cash back. It certainly sounds intriguing, for investors who have a significant portion of their net worth tied up in cryptocurrencies.

There have been other crypto credit cards launched in the past. Sologenic is not the first to reach this space. However, given the focus of Sologenic’s security token and the transparent vetting process that this blockchain provides, many investors believe that this network’s credit card program could be a real winner.

In order for users to gain access to a SOLO card, a certain amount of SOLO tokens need to be stored or locked. It is likely that these staking rewards will be tied to the rewards provided by the card, although details are few at this time.

However, for investors who are looking forward to a SOLO token, more total value locked in is always a good thing. Price stability for this token depends on increased user adoption and supply stability.

3. Sologenic plans a major airdrop

One of the big buzzwords in the crypto space in recent years has been “airdrops”. Sologenic plans one. But what exactly is airdrops?

Essentially, airdrops are promotional tools that developers in the crypto space use to promote a project. Free tokens are provided to crypto users or investors in a particular network. One of the last notable examples of airdrops was Uniswap (CRYPTO: UNI) In 2020. This airdrop offered $12,000 in free tokens to loyal users.

Recent reports indicate that Sologenic is planning a massive airdrop. This airdrop will provide 200 million free individual tokens to those holding XRP or SOLO, with the drop split evenly between the two.

What interest? Nothing, really. Investors simply need to buy and hold XRP or SOLO to earn these free tokens.

Unsurprisingly, in recent weeks the price of SOLO has been skyrocketing, at least in part because of this announcement. As investors look for tokens with an upside in the near term, SOLO is worth watching for this.

Final thought

Sologenic is a new project and faces stiff competition from well-known players. This is certainly not the first coding project looking at coding and securitization. And the use of massive airdrops for marketing purposes, while impressive in the short term, suggests that the demand for SOLO tokens may have been less than attractive previously.

That doesn’t mean this coding isn’t hot right now. For investors and traders seeking short-term momentum, there is a lot to like about SOLO. In fact, this is the token that made my watch list for the above reasons.

Of course, investors have to be very careful about position sizing and portfolio building when it comes to the crypto space. This is a young and rapidly growing world, with few winners and most long-term losers.

However, those investors who are looking for a more robust growth option in the crypto world may want to take a look at SOLO now.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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