Five STO Projects to Watch in 2019
Security Token Offerings (STOs) are gaining popularity and promise as the go-to method to replace the ICO model over time. They also have the added benefit of being equal in status to securities with dividend payments and other benefits attributed to equity ownership. The main hurdle lies with legal uncertainty, as the standard law giver in this field is the U.S. Securities and Exchange Commission (SEC).
In this article, I will present to your attention five projects that have already completed the STO phase. It is worth noting that due to their legal status, these tokens are not available at exchanges, and you can only get them though over-the-counter (OTC) deals.
Vaultbank (https://vaultbank.io/) is a project where, besides the digital asset exchange for security and utility tokens, users could easily exchange fiat through their debit card. The company will also provide other services related to the tokenization of various assets like companies, businesses and real estate. The holders of the tokens are equal to the shareholders the company and will get pay dividends and full reports once a quarter. Vaultbank’s STO ended in March, and they raised $10 million.
Aspen Digital (http://aspencoin.io) is a token that gives the right to partial ownership of the luxury hotel The St. Regis Aspen Resort in Aspen, Colorado, which is a ‘sacred Mecca” of winter sports enthusiasts in the United States. Token holders are entitled to re quarterly dividends of 4.75% and reports. The Aspen Digital STO ended on October 1 and they raised $ 18 million.
Neluns (https://neluns.io/) is an ecosystem consisting of an exchange, bank, and an insurance company. NLS tokens grant dividends to their holders on a quarterly basis and makeup 50% of the company’s profits. The company plans to release cards in partnership with Visa, Mastercard and American Express. The project is huge and managed to collect $136 million at the ICO/STO stage.
Ceyron (https://ceyron.io/) is a decentralized exchange for crypto assets with an annual dividend payout. It is noteworthy that owning tokens does not mean automatic ownership of the company. The percentage of dividends is also not specified. There is a prepaid debit card that allows you to cash out 20 types of currencies without fees.
tZero (https://tzero.com) is a project that plans to build an exchange for security tokens trading in accordance with regulation. The tZero project has collected $134 million. The size and frequency of payment of dividends are not found in the open access. Behind the project is a major online retailer Overstock.com.
I think that the most noteworthy project here is tZero and this is due to the growing popularity/potential of STO trading.
STOs are likely to rise in popularity for several reasons. The first reason is that due to it being an equity, an STO has a regulatory status that allows for more protection of its owner. The second reason is equity value is based on its existing and expected cash flow and balance sheet, so it is much easier to evaluate. Thirdly, it provides liquidity to the assets that do not have liquidity (unless they are stocks and are traded at the stock exchange). The tZero platform tries to solve the third problem, so there is a huge potential.
Perhaps more interestingly is the potential to allow retail investors to participate in venture-type projects as accredited investors. And as we know, retail investor participation resulted in a surging ICO market last year.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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