More and more crypto experts predict that security tokens will be the crypto game changer in 2019. It seems that the 2017 ICO craze has been losing momentum and companies across the globe that have been looking to ICOs to raise the necessary capital to build and develop their dream platforms are finding it much harder to find some accredited investors with the necessary funds.
Security tokens and STOs are the future
Crypto experts believe that security tokens and security token offerings (STOs) are the new hope as more are emerging from the ashes of dead ICOs.
Securities’ primary target is to encapsulate various things, new asset classes, fine art, private equity, venture capital, and they can be tokenized, regulated and traded. Much of the focus has been on utility tokens so far that are giving access to a service as they are regulation free, but they can eventually be used only in a small subset of use-cases.
Main requirements of blockchain-powered security assets
There are a few companies in the world which are building out the products and services that will allow selling and trading of security tokens. Blockchain-powered securities assets will have or need to have the following elements checked before the movement takes off for real.
- Compliance and regulation standards
- Tradability and fractional ownership
- Instant and cheap settlements
- Asset interoperability
- Security token custodian services
2018 might have already set the foundations for blockchain securities, and the next year, volumes and liquidity are set to increase, and the securities might take over the crypto space.
Closing words
STOs also offer a bright future, and they continue to gain traction in the crypto space. The flood of new tokenization platforms is creating the ideal environment for strategies such as security token offerings to flourish. Security tokens, in general, represent a more viable option for investors who are looking for more secure investments with enhanced transparency and legitimacy.
To find out more about securities, head over to securities.io and learn more relevant details.