This article is the start of a new series in the emerging field Security Token Offerings (STO).
In today’s article, we’ll talk about platforms that provide access to startups or existing companies in creating security tokens. The main difference from the well-known utility tokens, which involve are used inside the network, product or service and which are exempt from many of the requirements of the law; security tokens, which passed the Howie Test, are equated to the ownership of securities, which falls under fairly strict rules and regulations.
Fortunately, there are platforms that promise to solve problems related to security tokens issuing.
1. Polymath position themselves as Ethereum for security tokens. Own blockchain which allows the creation of tokens of standard SR-20 which combination with smart contracts, is intended to provide security tokens with liquidity. The POLY token is used to perform transactions on the platform.
2. Securitize offers tokenization of real estate, foundations or an underlying company. There is also a standard for tokens called DS. DS tokens of the ERC-20 standard are used to perform operations on the platform;
3. Harbor offers the release of security tokens for real estate sectors, stock markets, companies, antiques, and others. For this, Harbor uses its own R-token standard, based on ERC-20 and compatible with the ether network;
4. Swarm offers real estate tokenization through its standard SCR-20, as well as the development of applications involving the use of security tokens. The SWM token is used to pay for platform services.
5. Securrency offers security tokens in one-click, KYC/AML for 160 countries, investments in crypto and fiat and the choice of any blockchain when creating tokens.
From all those platforms, two tokens in particular (Poly and SWM) are widely traded on the exchanges.
I will now provide my insights on Poly and SWM from the perspective of investing.
- Ticker: POLY
- Big Markets: Binance, Upbit, Bithumb, Huobi, Bittrex. All main liquidity markets are there.
- Performance: POLY token price is $0.1367462881 (+1.12%); 0.0015723201 ETH; 0.00004157 BTC
- Market Cap: $39,231,431
- Returns since ICO: 0.34x USD; 5.50x ETH; 1.50x BTC
I see that currently, price provides a good entry point for a mid-term and long-term investment from risk-reward ratio and good fundamentals of the project. I expect easy 2x return in USD from current price in the mid-term and around 9x-10x in the long-term. I will include it in my portfolio.
- Ticker: SWM
- Markets: only small and medium exchanges
I do not see any interesting entry points at the moment as the price seems to be in a frenzy buy. It will probably will drop in the short term.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.