UK: Token investments expected to grow by 24% in 2022, survey finds

By Puja Sharma

Tokens are emerging as a way to increase accessibility to assets previously considered only suitable for the wealthy few – such as property, wine, and art. Almost a quarter of Britons are ready to invest in tokens or NFTs this year, according to a new national survey.

It’s worth noting that millions of people have already been exposed to tokens of different types as well as NFTs or through gaming – and security and fractional ownership as a form of investment may be seen as a natural progression.

Tokens – a new way to access assets previously reserved for the wealthy few – are also seen as technologically secure forms of investment, according to the results of the nationally-representative survey of 2,000 people commissioned by Tokenise.

When asked about which investments they viewed as most risky, 41% said Bitcoin, 27% company shares, 19% oil, 17% property, and 16% gold. Just 11% of respondents found tokens the riskiest form of investment. While the survey found appetites to invest in tokens are high, market maturity takes time. Some 30% of respondents had never heard of digital assets (tokens, fractional ownership, NFTs, or cryptocurrency), showing that education has some way to go in generating awareness.

Further driven by a difficult climate for traditional investment vehicles due to the pandemic, low-interest rates, and inflation, the time is right for tokens to take centre stage. To better understand public perceptions of them and other forms of digital assets, the survey among UK adults unearthed knowledge of different forms of investment.

When asked what contributed to the decision to buy tokens, 53% of 18-24 year-olds cited the ability to invest online or through an app. They are seen as relatively safe and secure forms of investment Compared to cryptocurrency, shares, oil, property, and gold, only 11% of respondents found tokens the riskiest form of investment.

Across the UK, there are big regional differences in knowledge and the appetite to invest in them. Some 41% of Londoners, 27% of those in the Northeast, and 24% in the Southwest are keen to use, buy or trade a token in 2022. Just 4% in the Northwest and 5% in the East Midlands have heard of tokens or NFTs.

The year after ‘NFT’ was named Collins Dictionary’s word of the year, consumer interest in newer asset classes continues to grow. Tokens are emerging as a way to increase accessibility to assets previously reserved for the wealthy few – such as property, wine, and art. Further driven by low-interest rates and inflation affecting traditional investment vehicles, the time might be right for tokens to take centre stage.

Mike Kessler, Tokenise Founder and Chief Executive Officer, said: “Our survey pinpoints shifting attitudes towards newer digital assets. We believe that tokens are close to a critical tipping point – the ideal climate for a fully regulated exchange for security tokens to emerge.

“Crucially, this also marks the start of an exciting new era for investors who can own a piece of what they love and stand to potentially benefit financially. That’s democratizing a world – of art, wine, property – that few previously had access to.” He added. This capital is at risk. Past performance is no guarantee of future performance.

Key findings

• Significant numbers are ready to invest in tokens Some 24% said they would be ready to invest in tokens of NFTs in the next year, showing that the tipping point for token adoption is now.
• London and other major cities – home to tech-savvy investors – are leading the way in adoption Some 41% of Londoners are ready to buy, use or trade NFTs in 2022.
• Ease of access is a huge driver for Gen Z The younger the respondent, the more concerned they are by the ease of access.
• When asked what contributed to the decision to buy tokens, 53% of 18-24 year-olds cited the ability to invest online or through an app.