With the rise of STOs, more companies want to apply the tokenization concept to their assets. This surge in the STO market is bringing in some huge investments from the big whales. According to a 2020 STO report by Strategy&, over 380 token offerings raised $4.1 Billion in total. Among all these STO investments, STOKR also recently raised over $4.6 million in fundings from large investors. The company facilitates the ventures to tokenize their distributable profits.
More and more companies are willing to step in and raise huge capital for their business, and investors are also positive regarding the high gains. Still, the STOs industry is pretty young, and it will take time to expand to its fullest.
Undoubtedly, the STO market is expanding at a fast pace with new partners joining in. This is the final part of our 2020 Look Back Series, where we will discuss the partners, market expansion and STO adoption. In earlier parts, we discussed STO laws, regulations, and jurisdictions that security tokens are subject to. However, in another part of this Look-Back series, we pondered on the STOs investment and market expansion point. This part is mainly focused on new emerging STO partners, trends, and STO’s growth in adoption.
Surge in STO Adoption
Demand for Security Token Offerings is constantly on the rise, and companies are willing to adopt such a model with their scalable business models. STOKR is also playing its part by raising investments for the ventures who are willing to tokenize their assets to sell them to the investors to raise capital.
STOKR is taking many companies onboard to raise funds for these startups. They are positive about the tokenization of $120 Million worth of assets. STOKR is backed by huge investors from iFinex Inc., which runs BitFinex. These are the indications that STO is being adopted, and that’s why people are willing to invest in this new digital concept.
If we see companies who have recently adopted the STO concept by parenting with STOKR, then Mazzanti Automobili is at the top of the list. They provide a 50% revenue share to their investors and are still in the capital raising stage.
If we see some of the most recent projects in the year 2020, then we have MegaTech (MGT) which is an on-going STO project. MegaTech focuses on energy storage facilities by making them more sustainable and clean. Some amazing projects are yet to be announced such as Slice, CryoTech Nordic, and Stakeey.
The Bitvested token was another successful project of 2020 that raised over $10.00 M in funds after selling their ten million tokens. Another project, Classic Car Coin, started their STO in November 2020 and they raised $6.00 M in just a few months. These projects clearly depict the upcoming wave in STO offerings as more and more companies are willing to offer their tokens for fundraising.
We also had a few STO fundraising success stories from companies like ARTID, which is basically a company that focuses on exchange, authentication, and tracking of artwork. The company is offering a 10% revenue share, and 39 investors invested in ARTID to raise the required capital.
Another great example is Infinite Fleet which is basically a sci-fi strategic game. They are offering 20% of their profits to their investors, and currently, over 303 people have invested in the concept. More investments are also expected to meet the required capital set by the company.
Contribution of CDS Chain
CDS stands for Commercial Data Storage which is basically an application of STO. It recently got approved by U.S. Securities and Exchange Commission (SEC). The main aim of the CDS chain is to handle commercial data storage agreements. It is a way to establish security and trust in business transactions globally which will ultimately facilitate commercial businesses.
This CDS Compliance with SEC regulation will ensure safety for STO investors in future. This will allow STOs to become more stable and less risky for all investors. ACN NewsWire has further elaborated on the approval of CDS Chain in their recent article.
Emerging STO Partners
Big players like iFinex, G1 Ventures, and the Utopia Genesis Foundation are actively investing in the STO partners who are willing to revolutionize the way of capital raising with the latest blockchain technology. These three companies recently invested €3.9 million in STOKR to promote the idea of STOs investments.
They are bringing up investors and companies on the same page to trade securities and give dividends in the shape of revenue share. They are tokenizing the company’s real assets to trade them as securities to be bought by real investors who put their trust in that venture.
The concept is working well so far as more and more investors are joining in. STOKR has become one of the biggest platforms for trading STOs but we are also expecting more partners in the near future.
If we talk about token exchange platforms, then tZERO stands at the top because it was the most active exchange of 2020 in terms of capitalization. The platform just had two active tokens and it still managed to touch a big market cap of $24,135,727. According to the tZERO executives, there are over 200 projects in the pipeline that are yet to be started. Hence, an exponential increase in tokens market cap is expected in upcoming years.
The market expansion is unstoppable, especially if big companies are constantly backing it up with huge investments with the partners. The entire market cap of the token industry was at $52,726,495 back in the year 2020. We have seen that many companies are also adopting the concept and many of them even successfully raised the required capital. These are positive signals, and big STO trends are expected in 2021.
To Sum up our STO 2020 Look Back Series, we can confidently say that the previous year has been a bumpy ride for STOs with a surge in the first half of the year while the second half was a bit slow for tokens. The STO market is still young and many big whales are waiting for more valuable tokens to be introduced. There were somewhere around 380 token offerings previously, but this number will double in the short span. So, prepare yourself and get ready to invest in the future of STOs!
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- 2020 Look Back Series: STO Partners, Market Expansion, CDS Chain & Growth in Adoption
- 2020 Look Back Series: STO Laws, Regulations and Jurisdictions
- 2020 Look Back Series: STOs Investments and Market Expansion
- Security Token Offerings: Recent Progress, Trend Analysis, and Projections
- Asset Tokenization - Real Assets and Industries Shifting Toward Tokenization
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