What is the future of security tokens?

[MrSpasybo]

The bullish momentum enjoyed by the security token sector in the first three quarters of 2020 has well and truly subsided, with monthly volume crashing by more than 40% for the second time in a row.

Since it tagged almost $22 million in August, monthly security token trade slumped to $9.15 million in September, before sliding down to $5.27 million for October.

Article: Security token volumes crash by half for two consecutive months

There was a time when STOs were seen as a better alternative to ICOs and security tokens were seen as safer than utility tokens, but now security tokens are losing their appeal and value.
Is the reason for the DeFi projects with great profits for investors? Are the investors running out of patience to wait for the profits from STO projects to be distributed?

[hair]

I don't know any real benefits of security tokens, are they really necessary?

[masterrex]

IMHO, I think the main reason why the Security Token Offerings or STO was losing its appeal to the crypto investors because of the legal reason's the security token offerings must be regulated and duly registered by the SEC for them to operate as we all know if the SEC was involved it will be more complicated and I think that was the reason why most of the investors are not easily participating in the Security Token offerings. I'm not an expert about it so correct me if I'm wrong.

[bigcash2011]

Security tokens suffered for long clearly due to strict regulations and to comply all of them there is a long documentation process and then huge fee which obviously not every project is willing to pay so that is why security tokens are something that have never really thrived yet.
There are some platforms like polymath etc that are working to simplify security tokens based projects by providing them a single, compliant platform i hope that will work well for security tokens.

[highnayem34]

STOs ought to have learned from DeFi. Since I saw DeFi as modern but instantly pulled in a part of financial specialists. Security Token Offerings or STO was losing its request to the crypto financial specialists since of the legitimate reason's the security token offerings must be directed and appropriately enrolled by the SEC for them.

[I-Bit]

It depends on the project and how the teams can plan for the security tokens. Not all security tokens are bad, I assume there are always some security tokens to have a good future. But maybe the trend of security tokens are already over. But don't so worry if you are holding the right security tokens, there is no problem.

[Mexite]

STO projects undergo lot of regulatory scrutiny and have to remain compliant to extant regulatory framework. Then again, security tokens can only be traded on certain exchanges as you can hardly see any popular top exchanges (CEXs) list them due to the regulatory issues.

[MrSpasybo]

I don't know any real benefits of security tokens, are they really necessary?

Each STO project has a way to share the company's profits with security token holders. They can use the profit to buy stable coin and send it to the wallets containing project tokens of the holders, they can also issue 1 internal token to reward to the holders.
From a certain perspective, many people are quite fond of the security token, because it is quite close to the way they invest and receive profits in the traditional market.

[labonikhatun]

In fact it is difficult to predict the future of security tokens the market is always changing when we go in any direction the future of tokens usually depends on the projects. If the team of projects manages well the token market will be in a much better position and their demand for investment will increase the market must be thoroughly verified before holding the token.

[Nostoman]

Which are not desirable to predict about tokens. Because everyone knows what the future holds for tokens. The future of any token can be much brighter. So I think there is a need for research on this. Of course you need to have a good detailed knowledge about tokens before you can hold a token. Otherwise, there is a possibility of loss by holding many tokens. So I think it's wise to make the right decision to keep you. Any project can pump and dump at any time. Must have knowledge about this.

[Crypto Guard]

The DeFi project offers something that many investors are looking for. STOs should have learned from DeFi. Because I saw DeFi as new but immediately attracted a lot of investors.

[hair]

Each STO project has a way to share the company's profits with security token holders. They can use the profit to buy stable coin and send it to the wallets containing project tokens of the holders, they can also issue 1 internal token to reward to the holders.

Unique concept for STO holders, They get benefit from the company. Do all STO projects provide similar benefits? how many tokens should we hold?

[Riya143]

Investors must know what kind of project or coin is good for investment. However, investors also do wisely which coins are good for holding. However, it is impossible to predict or predict the future of tokens. In some cases, people make predictions. But many times they are true, and in some cases the prophecies are not true. So there is disagreement on this issue. I like to make predictions a lot but predictions are not a choice for investors. The exception, however, is some investors who invest without knowing about any project or coin. They suffered losses. So if you want to invest, you have to invest wisely. Popular has the potential to succeed.

[Sentinel]

Sometimes, many people prefer which tokens have the potential to generate profits quickly. This makes people sometimes forget the security system. I think this is what happened to DeFi. We'll see what happens with DeFi.

[TomPluz]

Security tokens suffered for long clearly due to strict regulations and to comply all of them there is a long documentation process and then huge fee which obviously not every project is willing to pay so that is why security tokens are something that have never really thrived yet. There are some platforms like polymath etc that are working to simplify security tokens based projects by providing them a single, compliant platform i hope that will work well for security tokens.

I agree with this good analysis. Security tokens became famous as the best alternative to many failed ICOs in the past presumably so that investors can be given more leeway and more protection from scams. However, as time goes on, security tokens lost their appeals and so now we have the market taken over by DeFi projects, which as of now are also ridden with many scams and failures but since those who are alive are giving off many beneficial benefits more and more DeFi are sprouting like mushrooms. Soon security tokens will just be of the past unless something dramatic can take place to save it from extinction.