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Current state of STO market: notes on the sidelines of Security Token Industry Launch event in NYC

“Watching panels on STOs is like eavesdropping on a group of 9th graders talking about sex. A lot of talk, very little real experience, but a lot of enthusiasm about it happening in the near future”, — Dave Hendricks (Vertalo)

Investor panel with Ryan Alfred (Framework), Stephen McKeon (Security Token Academy), Carlos Domingo (Securitize), Gregory Keough (Finova)

Battlefield US: a Saga of the Year 2018

United States took up on the role of the main STO battlefield, as the market seems to be mature enough to embrace security tokens as a rightful fundraising method. The whole ecosystem is now standing still waiting for signals from the regulator.

  • Blockchain and its distributed ledger attributes make it possible to migrate the record of dealings to a more transparent and credible basis. Some experts believe that in three years’ time we will see a massive shift from traditional off-chain electronic book-entry, to a recording of ownership entirely on the distributed ledger.
  • Smart contracts and their combinations in protocols will enable automated trading and other operations with securities. Such exchanges will be open 24/7. No more 9 to 6 on workdays.
  • Cost reduction: a recent research shows the cost benefits of an STO in comparison with traditional private placement.
  • Stablecoins also provide an exceptional opportunity to create instruments to protect investors from fiat & crypto volatility.

Waking up from the utility token dream

Security Token Offering (STO) differs from already the notorious initial coin offering (ICO) concept in several core features:

Marrying Wall Street legacy with new technologies

Right now we are witnessing how STOs merge with traditional financial instruments, bringing in accredited investors only and limited secondary trading, multiple KYC / AML / Terrorist / Sanctions checks.

Technology foundations panel moderated by Jor Law (VerifyInvestor.com) with Mason Borda (TokenSoft), Rachel Lam (Hedera Hashgraph), Alec 0age (Zeppelin)

Applying STO today

Today security token offerings can be applied for:

Conclusions

We have met multiple platforms and early technology adepts on Security Token Industry Launch event. Sailing on a boat around Manhattan, the industry convinced us once again: security tokens are rad. And they are here to stay.

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