It’s been over a month since we launched securities.io, and this past month has seen more progress in the security token space than the previous year combined. More companies are launching security token offerings in order to raise capital. Meanwhile ICOs are dying a slow death, with the SEC becoming even more aggressive in cracking down on ICOs.
In the meantime even conferences are refocusing. Start Engine rebranded their biannual conference from ICO Summit 2.0 to the Start Engine Summit. In this case the entire summit catered exclusively to security tokens. The same can be seen on the Start Engine platform, less ICOs, and more STOs.
It’s not just Start Engine, I see the same similarities in other conference in the space. More time is being devoted to STOs, ICOs are basically the left over pitches that are seen in the second half of the last day after the serious investors have gone home. ICOs are basically pitching to other ICOs.
My inbox is becoming bombarded with companies that have cancelled an ICO launch, to instead focus on launching an STO. They’ve all but given up on a utility token being used on the platform, or if there is a utility token, it’s a secondary stable token.
At securities.io we want to be more involved in the space. We initially had the mission of being a securities news platform. Now we want to go further. We want to be a listing platform that that will list all security tokens. We also tell you who is powering the security token (such as Securitize.io, Polymath, Neufund, etc.) This is all in the hope of making the space more transparent.
We are also working on partnerships with different listing platforms, token issuers, and STOs, in order to make securities.io more useful.
You can expect more interviews so that you can learn about actual STO businesses. We also plan on launching a “Thought Leaders” section which will enable market leaders in the space to communicate directly with investors. This will never be to pitch specific tokens, instead it will be a venue for them to share their thoughts and how they are seeing the securities space evolve.
Lastly, we are working on launching a section called “STO Launch“. This will offer detailed information to companies who are considering launching an STO, but who are still confused about the entire process.
In the meantime you can view our new tokens listing platform.
In late 2016, I was lucky enough to purchase Dash, and Ethereum for roughly $15 a token. I then watched as my investment easily eclipsed any investment I had previously made in the traditional stock market. Ethereum offered the most potential with its amazing ability to enable businesses to launch tokens within minutes on the Ethereum platform.
While I sold Ethereum too early, I did partake in many of the ICOs in 2017. While I enjoyed the returns offered by utility tokens there was clearly a mania to the bubble that made zero financial sense. Tokens would raise funds via an ICO, and overnight the tokens would double or triple in value. Often there was no business attached to the token, and nothing but an empty whitepaper selling a pipedream.
While I watched this bubble from the sidelines I could not help but wonder what purpose these tokens served other than offering liquidity and the potential to profit by reselling to the next investor.
The major problem was the lack of security, or governance.
For this reason, I became excited when Blockchain Capital launched the first security token in early 2017. This was the evolution in cryptocurrency that I was waiting for. The token by the name of BCAP raised $10,000,000. Unfortunately, over time it lost value as investors realized that no exchanges wanted to list BCAP due to fear of being on the wrong side of the SEC.
Nonetheless, over the past few month wise investors have been picking up BCAP. If you look now, BCAP is one of the few tokens that has not only retained its value since launching but has also increased in value. And this is with almost no where to trade the token with the exception of some decentralized exchanges such as EtherDelta.
Fast forward to 2018, and we are now in the future with Patrick Byrne of overstock.com having successfully completed an ICO for the TZero exchange.
This is an important milestone for many fundamental reasons. It gives security tokens the first regulated large-scale exchange to be listed on. Since the exchange is regulated it offers access to institutional investors who were formerly scared away by utility tokens which offered next to no utility, and even less accountability.
The second problem with security tokens, was the difficulty in launching them. Services like Polymath solve that part of the equation. Polymath easily enables anyone to launch a security token and they have been successful with assisting in launching 7 security tokens as of this writing.
This website was designed to solve another problem in the space. Until now there has been no dedicated resource for security token news, and listings of these types of tokens.
I’m excited that we will be on the ground floor of this next evolution in cryptocurrency. We will be offering news that is relevant to the industry, this includes information on exchanges, interesting projects, regulation, legislation, etc.
- KoreConX partners with SME Brokers November 16, 2018
- Vertalo Partners With Securrency, Integrating Protocols Into Platform November 15, 2018
- Malta To Have First Gold Back Security Token November 14, 2018
- Ripple files ‘Notice of Removal’ November 14, 2018
- Bitstraq Granted Maltese VFA Licence November 14, 2018