While tokenization offers numerous benefits, it also comes with challenges:
1. Regulatory Compliance: Navigating the complex regulatory landscape is essential. Different jurisdictions have different rules concerning tokenized assets. 2. Technology Risks: The underlying blockchain technology must be secure and reliable. 3. Market Volatility: The value of tokens can be volatile, similar to other digital assets like cryptocurrencies. 4. Investor Education: Potential investors need to understand the concept and risks of tokenized assets.