Categories: Ethereum

Security Token Offerings (STOs) Could be Big For Korean Crypto Industry

Click here to view original web page at www.newsbtc.com

If 2017 and early 2018 were seen as the year(s) of the ICO then 2019 could well be the year for the STO, security token offering, according to latest research from South Korea.

Security Tokens Still Need Regulation

Initial coin offerings were seen as a great way to launch a project by selling tokens for it in cryptocurrency, which was predominantly Ethereum. However the scammers and shysters soon took advantage of this relatively easy way of making money at the behest of the uninitiated, and on the back of the wave of fomo that was gripping the digital world this time last year.

A large number of ICOs were revealed to be scams with fake teams and non-existent projects. This caused a tsunami of regulatory pressure and kick started the crypto bear market which is still ongoing today.

Security tokens could well be the answer as unlike the majority of crypto tokens they are actually backed by physical assets. They share traits with conventional financial products such as stocks, bonds and derivatives and provide a way for investors to buy a digital stake in a commodity by owning a crypto token backed by it.

According to Business Korea the country’s leading blockchain research centers, Chain Partners’ CP Research and Coinone Research Center, have identified STOs as the next big thing for the crypto industry.

CP Research added that they provide a solution for assets that are difficult to liquidate such as real estate or art. It said that 2019 will see the establishment of an STO infrastructure and the market will grow to an estimated $2 trillion by 2030. The research noted that real estate and venture capital funds have already become tokenized but adoption may still be hindered in South Korea due to its current regulatory stance. According to the report, regulators still claim that cryptocurrencies and blockchain are two different things which could be sending domestic companies abroad to launch STOs.

Coinone Research released a similar report but had a different take on the situation stating;

“STOs which focus only on the liquidation of assets will eventually create a lemon market where only worthless assets are traded. Concentrating only on the possibility of liquidation is a dangerous thought,”

The warning is that this type of investment practice could cause another economic crash similar to 2008 where mortgage backed securities were issued excessively. The purpose of such research was to push the Korean government into formulating clear and concise STO regulations in order to promote healthy investment markets.

Image from Shutterstock

Tags: Coinone, ICO, regulation, security tokens, South Korea, STO

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama
Tags: ethether

Recent Posts

Authorities Bust Illegal Crypto-Mining Lab In Nuclear Power Plant

Ukrainian news media is reporting that last month an illegal cryptocurrency mining operation was discovered and confiscated on the site… Read More

1 hour ago

Why Mark Carney Thinks The Dollar Can No Longer Be The World’s Reserve Currency

While Jerome Powell's highly anticipated Jackson Hole speech was, in the words of Brean Capital's Russ Certo "underwhelming and anti-climatic",… Read More

1 hour ago

Bitcoin Transactions Lead to International Drug Trafficking Ring’s Arrests

Criminals often express their favoritism toward cryptocurrencies. The perceived privacy and anonymity associated with this payment method makes for an… Read More

1 hour ago

Initiative to Curtail Negative Interest Rates Gains Traction in Germany

Negative interest rates, a common occurrence in Europe these days, are unpleasant for both banks and clients. And financial institutions… Read More

1 hour ago

Analyst Says Bitcoin Is About to Seriously Impress Us

As of late, bitcoin – the granddaddy of all crypto – is once again experiencing small bursts of bearish behavior.… Read More

1 hour ago

Gloomy Stock Market Faces New China Taunt: We’ll Get ‘Last Laugh’

A gloomy stock market must wrestle with China's latest taunt, in which it warned it would "fight to the end"… Read More

1 hour ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More