Initial Coin Offerings (ICOs) have dominated the Crypto sector in the last two years but many analysts believe that 2019 will be the year for the Security Token Offering (STO). Given that the security offerings sector is more regulated than the Crypto sector, STOs are likely to outperform ICOs in the long run although they’re unlikely to replace them. One major benefit of the use of blockchain technology is that it will enable the tracking of tokenized real-world assets. Here are some of the STOs to watch this year.
Sisu
Sisu solution is a project that seeks to improve the financial well-being of middle-class Americans. The company is planning to launch an STO although details about the date have not been given. Security token holders are expected to get a share of Sisu Holding, Inc., a respected California-based asset management firm.
The company has applied with SEC for a Regulation A Qualification. The firm is targeting the American market, which is expected to make a significant contribution based on its size. Given the company’s experience in the financial sector and the fact that it is willing to involve the regulators from the early stages, Sisu is likely to become a major target for many investors.
Monart STO
Start Date: April 16, 2019 End Date: May 30, 2019
On December 2018, Monart announced that it would launch an STO to revolutionize the art industry. The project will involve combining art and blockchain to create a 21st-century artistic platform. The Beijing-based company is optimistic that it will be able to bring an innovative digital experience.
According to the project’s whitepaper, 50 percent of the STO’s revenue will be spent in a large art collection. The token holders will receive 100 percent of the gross profits realized herein. Artwork collectors will get new liquidity options through the buying and trading of artworks. Pauline Houl, is the CEO and co-founder of this company.
edeXa STO
Start Date: March 1, 2019 End Date: April 30, 2019 edeXa is a renowned software company that mainly deals with supply-chain solutions. It is a subsidiary of io-market AG, a prominent high-tech firm. Blockchain technology enables the firm to record business transactions fast with increased security and transparency and create simple interfaces. edeXa token holders will acquire io-market AG shares. Blockchain enables the company to store electronic invoices in a forgery-free way and improves security by eliminating intermediaries.
Conclusion
Blockchain technology is expected to disrupt almost all industries in the future. STOs are a demonstration of how the technology will shape the world in the coming years. Various organizations and startups have already launched or are planning to launch exchanges for the security tokens this year. Malta Stock Exchange has already announced plans to introduce a platform for these tokens.
Although it is quite early to tell how STO will be received in the market, various factors are likely to drive their popularity. Security tokens will allow instant settlement, uninterrupted 24/7 trading, and fractionalization among other benefits. Identifying a project early and investing before anyone else could be one of the best strategies to reap big from this innovation.