Hey guys, time for another review.
This time I chose for Swarm, a very unknown gem that is about to make some big waves in the Security Token space.
Let me start this off with the usual financial disclaimer: I did not receive any sort of payment for the writing of this article. I am personally invested in SWM but you should not take this as financial advice, because it’s not. Everyone should make their own decisions and do their due dilligence when it comes to investing.
Let’s get into it. What is Swarm?
Swarm is a blockchain agnostic STO platform
Their platform allows an STO issuer to launch their token on any chain supported by Swarm. Currently $ETH $XLM and $TRX are supported with many more on the way. Their full platform is about to release next week and from the sneak peak I have seen I can say it looks all but incredible.
Swarm is going to make it extremely easy to issue or invest in an STO. They’ve taken some time to get through all regulatory hurdles but have finally reached the point where they are ready to launch. This leaves us with the opportunity to buy 92% below ico price right now.
This project is designed to be a self sustainable issuance platform run by public participation (nodes) and open for anyone to issue on. It’s a non profit decentralized network that will act as a tool set for other issuance platforms, sto advisories, exchanges, blockchain consultants and more to utilize. It’s an open by design, open source, blockchain agnostic solution — a one of a kind all inclusive STO ecosystem. This isn’t just a concept, things are starting to roll out and the interest among STO related businesses is insane.
With each STO launched, the issuer is forced to buy SWM from the market and stake them for the whole duration of the lifecycle of the STO. This creates great demand for $SWM and is beneficial for the issuer as well as this way the whole issuing is actually free for them. Once the STO lifecycle is complete the staked SWM will be returned to them. Swarm has already received many praises and demand due to this system. Which shows itself in the huge list of upcoming STO’s.
If STO issuers get their SWM back after the lifecycle of the STO won’t they just dump it right after?
Possible and I will even say it’s very likely. however this does not have me worried one bit. You see the average lifecycle of an STO is expected to be between 3–5 years. So this means the issuers’ staked tokens will be locked out of circulation for this same period. By the time they unlock many other STO’s will have launched and in turn have locked up their SWM. The more popular Swarm becomes in offerings the more SWM will be locked up. This will create a cycle with constantly renewing demand for the SWM token.
In my opinion this is a genius design which causes demand for the SWM token and at the same time is very interesting for an STO issuer. Combine this with the fact that Swarm offers the issuer to launch their STO on any chain they so chose and you will start seeing the big picture.
Oh did I mention they have 85 sto’s planned already? In fact they already ran a successful STO a little time ago (The Art Token [TAT]) which raised 16 mil.
2 more STO’s are coming up within the next 2 weeks: Resolute and INDX. These are already quality projects so this gives a good future outsight for the remaining 80+ STO’s coming after. Quality over Quantity but if they can deliver both it’s even better ;).
SWARM’s no-fee tokenization model goes even further by rewarding token issuers for using the infrastructure. Token issuers stake SWM to issue SRC20 security tokens to investors, while earning SWM against their stake, for the life of their investment. Staking demonstrates a token issuer’s commitment to the network and allows them to benefit from its pool of qualified investors.
SRC-20 Token Standard
Swarm created a new token standard and called it the SRC-20. All Security tokens start off as SRC-20. SRC-20 tokens are not locked into a specific standard, but evolve with the times. Upcoming standards that are currently in development (eg, ERC-1400) will be supported when their framework is sufficiently adopted, including allowing for expansion into other chains. Welcome to the cross-chain protocol-agnostic security token of the future.
Obviously with STO’s being so new this brings some regulatory hurdles with it that need to be worked out. Luckily Swarm has a strong legal team that worked out a way to be fully compliant with all regulations per jurisdiction.
Enter MAP (Market Access Protocol)
Utility of the SWM token
More utilities are still being worked out as we speak but the team obviously needs to make sure everything stays compliant with regulations.
Yes, Swarm has masternodes
Masternodes add up to even more demand for the SWM token as people will be incentivized to lock up their SWM and earn rewards.
What’s coming up?
Swarm is about to release their Tokenization app next week and the STO’s will come running in. For the next 2 weeks we already have 2 coming up.
June 1: INDX Capital https://stowise.com/sto/indx-capital/
With the new Tokenization App we will see new ones roll out regularly, let me show you how easy Swarm made it to issue and/or invest into an STO.
Some sneak peaks from the platform
All in all, Swarm looks like an amazing play to me, standing at the forefront of a new market with only 6m mcap. They have a lot of things in the pipeline and I’m very excited to see what it coming up.
Hope you enjoyed it, thanks for reading!