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What Is the Primary Risk Associated with Security Tokens?

The primary risk associated with security tokens is regulatory uncertainty and the potential for illiquidity. While they aim for compliance, evolving regulations across different jurisdictions pose a risk to their legal status and market viability.

Furthermore, because they are often traded on specialized, less mature platforms, they may not have the same level of liquidity as traditional securities.

What Happens If a Market Is Illiquid at the Time of Settlement Price Calculation?
Differentiate between Illiquidity and Insolvency
What Are the Primary Risks Associated with Staking Cryptocurrency?
How Does the Duration of a Lock-up Period in Staking Affect Its Perceived Value?