Security Token is the new Trend in 2019 – tZERO as a pioneer?
Home News Security Token is the new Trend in 2019 – tZERO as a pioneer?
Marcus Misiak –
The subject of the Security Token in the last weeks and months, even through the recent Launch of the Security Token platform tZERO, a lot of Hype around the topic of Security tokens and how the Blockchain-industry could revolutionize.
But what exactly are Token Security and how exactly do you add in the crypto – currency and Blockchain-industry?
Security Token vs. Utility Token
Token can be in two different categories: Utility-Token and Security Token (the value of the paper Token).
The Utility Token offer to the holders of service and/or product. For example, Utility-Token owner may have the right to access a particular network. You can give their owners the opportunity to have a say in the project (Proof-of-Stake, or Delegated Proof-of-Stake).
Security tokens are a type of Token that refers to its value of a tradable external assets of value. They, therefore, constitute assets that, in the “real world” already exist and can therefore act as a bridge between the Blockchain-the world and the traditional financial industry.
If a Token is considered to be securities, it is subject to however, the American stock market regulator, the Securities and Exchange Commission (SEC), the paper, or by the jurisdiction over the approval of a Bitcoin ETFs come in the last year is increasingly in the focus of the cryptographic Community, for the purpose of classification of Bitcoin, Ether and Ripple as a (Non -) value. Due to the strict regulation, as in a “traditional” financial product, you need to be a provider of Security-Token intensively with consultants, lawyers and regulatory authorities deal with.
Revolution from the ICO to the TSO?
Some experts are calling the Security Token Offerings (STOs) even of a “third wave for crypto”. The CEO of CoinShares said a few weeks ago, this statement. Bitcoin was the first wave, a “new Era of value transmission”. With the second wave of Ethereum and the based Initial Coin Offerings (ICOs), as well as the self-proclaimed “Ethereum-Killer”, such as EOS, Tron, etc.
A new Trend in 2019, called the “third wave” could be, according to some experts, as the CEO of CoinShares, Security Token. While ICOs went for the first time, for anyone with access to the Internet, to solicit investment capital, were so many cheaters and Scams in the crypto-market. The open, decentralized, and largely unregulated character of ICOs was certainly a driving factor that promoted this development in 2018. This was certainly neither in the interest of individual small investors, within the meaning of the regulatory authorities, such as the SEC in the United States emphasized several times.
Here Security tokens come into play. Instead of trying regulatory avoid searching STOs, regulatory certainty, and are not in an unsettled area of law.
Pioneer for Security Token Offerings (STOs) – tZERO
The most successful STO today is tZERO, which has collected $ 134 million for its trading platform. tZERO offers a Blockchain-based platform for the trading and settlement of Security Tokens, which aims to provide companies with the opportunity, through the introduction of private Security Tokens in a simple and cost to obtain cheap capital. Especially small and medium-sized businesses should benefit from this opportunity.
Like Overstock’s Patrick Byrne on 19. January said, tZERO launch in the next few days officially, and that may be a new Trend for 2010 usher?
25. January said tZERO, that the secondary trading of their securities-tokens, which were distributed earlier this month to investors, is now live. Accredited investors can now trade with other accredited investors on a digital securities Brokerage account in the case of the Dinosaur Financial Group, LLC, tZERO value of the paper Token. The latter acts as a Broker-Dealer.