ICO’s had a rough year. After a series of fakecoins and tokens that never even reached beyond development phase, as well as stricter regulations and the Ethereum chain issues, the ICO train slowed down and is looking for other ways to be revived in its former glory.
That is exactly the ground that it’s more regulated relative the STOs (security token offerings) needed to start taking its place in the market and attract more investments. And by investments the digital securities market is already estimated to be worth over 7 trillion USD annually, if the developers of Securitize, a compliance platform for managing digitized securities on the blockchain, is to be believed. Securitize has announced a funding of 12.75 million USD raised by having investors like Blockchain Capital, Coinbase Ventures and Xpring which is an investment initiative by Ripple, only for the first phase of their planned launch of an STO in 2019.
Trading platforms for STOs are also starting to appear with Openfinance Network set to become one of the first regulated trading platform in the US for security tokens and more are soon to follow like Desico. With the decline of utility tokens and the fact that a tokenized security can be compared to digital shares of the company that issues them gives STOs the more traditional sense of financial instrument that investors are looking for.