It was a slow news week in security tokens. So we start with a downbeat analysis from Asia. Why is the growth engine of the world not excited by security token offerings?
“The lack of interest is particularly striking in Thailand and Taiwan, two areas that were among the first to enact STO regulations to encourage the investment.”
Two issues stand out. One is the cost to do an STO is high. The second is that developing markets such as Thailand and Taiwan don’t yet have the investor liquidity of major hubs such as New York and London.
For our second story we went with firms investing for the future specifically in those developing markets.
“The Stellar Development Foundation (SDF) announced Wednesday it has invested $715,000 worth of lumens (XLM) tokens in DSTOQ, a security token platform that provides traders with access to global markets from their smartphones.”
However note that Stellar was investing their own currency not a “real” currency like USD.
For our third story we went with a savvy entrepreneur who made a quick exit from one venture and then reinvested to go “all in” on the Security Token market.
“Meanwhile, Konings has already moved on to his next project, Security Token Group, of which he is a founding partner. Konings says the group has already raised over $1 million dollars in financing, and employs a small team of consultants, developers, and fund managers across its subsidiaries. The company is also on track to break $1 million in revenue this year.He predicts 2020 will be “the year of the security token.”
In short, this week felt more like 2018 with a lot more talk about the future than big things happening today.
We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.
For context on Security Tokens please read the chapter on Security Tokens in our Blockchain Economy book and read articles tagged Security Tokens in our archives.
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