In this review we’ll take a look at Wealth99. Wealth99 is an investment firm that uses blockchain tokenization technology to bring alternative assets within the reach of the average investor.
Confused already? Don’t worry. In this review we’ll unpick Wealth99’s product offering and give our evaluation of its suitability for average everyday investors. But before we get into it, please note that Wealth99 is primarily aimed at the Australian and UK markets, so if you live outside those territories it might not be possible to open an account due to licensing restrictions, and KYC and AML regulations.
The Wealth99 business objective.
Here’s what the Wealth99 team has to say about what inspired their company:
“Wealth99 is here to help build new wealth for the 99% of investors who’ve been barred from the best wealth-building opportunities. With blockchain technology, we free you to diversify into the exciting world of alternative assets – the exciting wealth-building opportunities that until now were only accessible to the top 1%. Wealth99 was established in 2017 with a vision to create a new kind of wealth company – one that brings new freedoms and a better future to the everyday investor. We believe that blockchain technology – tokenization and fractional ownership – is the game changer you’ve been waiting for.”
What does Wealth99 mean by ‘alternative assets’?
At their very plainest, alternative assets are every investment other than shares and bonds. Shares and bonds are the two asset types that form the vast majority of the investment portfolios of the average investor – usually in a 60/40 ratio.
Examples of alternative assets are precious metals, commercial property, fine art, collectables, carbon credits, private equity, cryptocurrency, NFTs, and the list goes on.
At the time of writing Wealth99 offers two key types of alternative assets; tokenized gold, silver and platinum, plus a selection of the most popular crypto coins, with more options coming in the near future.
Why would you want to invest in alternative assets?
There are two main reasons why alternative assets are a desirable addition to any investment portfolio.
- The opportunity to make bigger gains
- The opportunity to diversify and therefore protect your wealth from market ups and downs
What is the investment potential of tokenized alternative assets?
Tokenized assets are essentially digital tokens that represent a corresponding asset. This could be a real-world asset, like fine art or property, or a more abstract asset such as company shares. Through tokenization, high-value assets can be split into many many tiny fractions. This allows for ‘fractional ownership’ and means investors can purchase a small fraction of an asset – lowering the cost to entry, and opening the door to millions more investors around the world.
This is one reason why major companies such as IBM see huge potential in tokenization. IBM is leading the way in blockchain technology with their Hyperledger project which is off the shelf blockchain solution for business. IBM has big hopes for the development of tokenized assets, and claims that the total value of tokenized assets could reach $24 trillion worldwide as soon as 2027.
Alternative assets represent a sizable portion of that market. Given that tokenization is still a minnow in the investment world right now, that means there is going to be absolutely phenomenal growth over the next five years. As an early mover in this market, Wealth99 hopes to be able to grab a big share of the tokenized asset investment business in Australia and the UK.
Who is Wealth99 aimed at?
Wealth99 believes tokenization and fractional ownership will democratise wealth, and open up more investments to more everyday people. This means the company has a very clear focus on the everyday investor – meaning people with an investment portfolio worth thousands rather than millions.
How does Wealth99 work?
At its core, it’s a digital exchange where the items being traded are offered in token form. For example the precious metals on the Wealth99 platform are backed by the equivalent amount of the actual physical gold, which is stored on the token owners behalf in a vault at a leading bullion trader.
Wealth99 clients can buy, store and sell tokens whenever they want on their built-in digital exchange. As Wealth99 is for everyday investors, it has been designed to be incredibly simple and user-friendly. This makes the process feel smooth, seamless, and easy – whatever the investor’s experience level with alternative assets.
Using the Wealth99 platform.
To get started, first you have to sign up for an account and go through the customer verification process that’s required by law in both the UK and Australia.
From there, as mentioned, use of the exchange is very simple. If you’re familiar with online banking then you should have no problems.
When dealing with digital assets, security is critical. So it’s worth noting that the Wealth99 exchange has multiple security protocols in place including compulsory 2FA. Also assets held on the Wealth99 exchange are secured by third-party custody and vaulting companies. Most of the cryptocurrencies Wealth99 lists are custodied and insured by Bitgo, and the physical precious metals that the tokens represent are, as already mentioned, vaulted and insured by one of the world’s biggest bullion houses.
Are Wealth99’s tokenized alternative assets a good investment?
Wealth99 offers tokenized precious metals and a small selection of the world’s leading cryptocurrencies. The physical metals that Wealth99’s precious metals tokens represent are a highly traditional and conservative asset; historically a popular way to protect wealth in uncertain times. Crypto, on the other hand, is a very young asset class that has seen spectacular gains, and severe losses.
Overall it makes most sense to view owning alternative assets like these as a way to get exposure to the possibility of extra gains and to bring diversity to your portfolio. Think about them like that and then they are worth investigating further. Their value as an investment can only be determined by you. You need to do your own research, and always remember that the value of any investment can go down as well as up.
Wealth99 review conclusion.
You need to be comfortable with taking a small amount of risk when investing in anything new, and tokenized assets is no exception. We would recommend visiting Wealth99’s website at wealth99.com and making an appointment to speak to one of their people. That way you can get a good feel for the company and whether tokenized asset investing could be right for you.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.