Crypto enthusiasts are following the market trends quite closely, and after the boom of ICOs, it seems that STOs might take over the niche. It is worth noticing that despite a shaky market and regulatory uncertainty, security tokens seem to have a bright future in the blockchain market. After the mid of 2018, it was though as if STOs would dominate the market and make it ‘the year.’ However, it was just a beginning, although a powerful one.
What marks the rise of blockchain based security tokens?
A lot of facts, actually.
However, the first move which leads to the rise of these digital assets was when the SEC bombarded ICOs and forced them to offer enhanced security. Before they could do anything, the investors slipped off as they started considering it a potential threat to their investment.
As an alternative, they have started turning towards a much securer option, the STOs. Please note that none of the digital assets, including STOs, are absolutely secure. Therefore, we prefer using the concept of relativity while talking about any digital asset.
Why would 2019 be so favorable for STOs?
There are plenty of reasons behind it. Considering the overall growth of the industry in the last 10-12 months, it seems inevitable. People want to invest in a blockchain-based asset and previously, it was quite difficult to do so. However, online investment has become quite easy now. Therefore, it is sane to expect that a variety of users would hop towards it.
Moreover, since regulatory bodies are more inclined towards security tokens, it might be the best bet. Who knows…
What are the pros of STOs?
Let’s forget about a long list and just focus on the most significant reason which has gained SEC’s trust.
Unlike ICOs, security tokens are backed by something ‘real’. We have observed an array of ICOs in 2018 which were mere scams and had nothing to offer after the funding phase was over.
After the mid of 2018, it was though as if STOs would dominate the market and make it ‘the year.’ Why would 2019 be so favorable for STOs?