In 2017 people poured billions into speculations on whitepapers and "utility" tokens.
Not once have these tokens ever represented equity. At best they were a gamble. Even with strong underlying projects, good tokenomics were needed to maintain the ecosystem.
And look where we are today.
The predictions came true. 95% of tokens are now at a 95% loss from ATH's.
The problem was, and still is, that 95% of these tokens don't have significant value. No equity, no dividends, no voting rights, no ownership.
ICO’s were a way for projects to raise funds without having to give away any equity, withougt having
In my strong opinion, there will not be another uprising for utility tokens. Retail has already been burnt. They've learnt their lesson.
So where will the next uprising in crypto come from?
Is it going to be institutional money coming into payment coins like bitcoin? Highly unlikely. We've already seen bakkt launch with a flop, we've seen JP Morgan, Goldman Sachs, Facebook, and Chinese Government start with their own private payment systems.
We've seen big corporations opt-out of using the public Ethereum Chain, and simply forking it into their own private chain.
For the next wave in crypto, it’s going to need to be something that adds massive value both to big money and to the retail.
That is exactly what security tokens or digital securities provide.
They allow retail investors to actually own a piece of the company, to have dividends, and to turn a profit in a company that is compliant with regulations, and for retail, for the first time ever, the opportunity to get in on the ground floor.
The traditional route for a company to raise is angel investing, pre-seed funding, seed, venture, series a series b and THEN the IPO where the public can get in. Once the public is in, there’s already a plethora of investors chomping at the bit to make their exit and dump on retail.
If you’re a US retail investor, you actually have the strictest regulations for investing out of pretty much anywhere on earth. For the majority of the rest of the world, you’re golden. You can hold, trade, buy and sell security tokens even as a retail investor. For the first time, retail has the same opportunity as VC’s and big money.
Tokenized securities allow companies to raise faster, cheaper and with less friction. You can launch to a global market near instantly and for negligible cost. A traditional IPO takes an enormous amount of time, legal work, and money. An STO is a fraction of that.
So who will be the big winners in the STO space?
There will be thousands.
Just like there are thousands of successful companies on the stock market, there will be even more successful tokenized assets. It’s not just companies, it can be real estate, gold, racehorses, athletes contracts, artwork, and a lot more.
Finding the winners in the Digital Security Space will be on par with finding winners in the stock market.
So what’s the sure fire bet?
Digital Securities Issuance Platforms.
The platforms that issue tokenized securities hold the keys to this upcoming avalanche.
Right now, we have harbour, polymath, weown, securitze and a few others. However, as retail, guess what. Can’t invest in them.
The first security token issuance platform that issues their own equity to retail, is likely going to be the winner.
Security tokens are cryptographic tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders. This takes care of the liquidity issues.