Security Tokens are Still the Next Big Thing and Industry Players say They’re Poised for Huge Growth in 2020
Prosperous cryptocurrency industry players predict a massive development in 2020, having mentioned that the growth opportunities for security tokens will be huge in the near future.
Approximately 58% of all ICOs (Initial Coin Offerings) in 2018 may have refunded its investors, disappeared or failed. Nevertheless, with the ICO decrease, STOs (Security Token Offerings) have arrived to remedy this shortcoming.
Taking this into account, the main quality that surely satisfies customary investors about dealing with STOs is that they are technically obliged to possess AML (Anti-Money Laundering) and KYC (Know Your Client) features that are constructed in it hence conformance is compulsory.
Furthermore, the fame in 2017 reflected the space in numerous ways especially ICOs are out of the picture. In view of this, ICOs are just too risky and frequently brought frauds or scams to the blockchain space. Although, STOs ensure something distinct: a decentralized, fundraising paradigm that is trustworthy, secure and compulsory.
Essentially, distinctive from a utility token, a security token is connected to an actual asset and/or funds. Likewise, it recompenses interests or fractions to the token holder depending on the worth of the underlying resources. In addition to that, the underlying asset can be in the form of bonds, real estate, collections or even at shares.
Taking this into consideration, the security token enterprise possesses a view of bringing $24T into the recent agency in accordance with the current metrics. With this being said, this outlook is predicted to be attained by 2027 which is established on the Dot Com bubble.
On the other hand, in the United States, STO is still believed as a lawful grey sector. SEC (Securities and Exchange Commission) is not ready to set out a straightforward precedent with most issuers’ pending requests; the SEC has currently published a system for token securities. In light of this, there are numerous apprehensions that the biggest economy could not keep up if this uncertainty resumes.
In the world of Crypto, finding the right people to do the job can be troublesome and difficult at best. This is why at FIAT Exchange, we offer an all-in-one service encompassing everything there is to launching a token offering, as well as ensuring that everything is safe and transparent with all of the legalities done first. As a pioneer in the consensus industry, we offer the tools to democratize access to finance and through our platform, investors, start-ups and established companies are able to find opportunities they otherwise never would have.
At FIAT Exchange, we have consultants to help innovative start-ups, promising businesses and even well-established corporations launch their own Initial Exchange Offering, Initial Coin Offering, Security Token Offering or Reverse Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.
While there already are other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.
If you are an Investor looking to unlock access in the FIAT Exchange ecosystem and discover new investment opportunities or if you are an Entrepreneur looking to raise capital, we can definitely help! Please feel free to contact us: support@fiatxs.com
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