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However, the characteristics of this security token have been misunderstood by many in the market, thinking that STO is a regulated ICO that can create another speculative frenzy in the market, bringing vitality to the stagnant ICO market. In fact, the nature of STO is entirely different from ICO. Security tokens are essentially "asset tokenization," breaking down ownership of assets with high thresholds and low liquidity into numerous security token equity certificates. These are then listed on platforms that provide liquidity for trading, allowing small investors to participate in large targets and improving the liquidity of the assets themselves.
Firstly, the MICA team wants to clarify that "STO is not a regulated ICO." Looking at the current situation in the United States, STO is fundamentally a rigorous fundraising channel. Under regulation, issuers must have "assets with predictable income" to tokenize the assets through STO platforms and sell them to qualified investors. It is not like ICO, which can raise funds from the capital market with zero thresholds. The possibility of creating a similar speculative frenzy in the crypto market is very low.
Currently, security tokens have sparked a trend in exploring overseas real estate markets. Due to limitations such as high investment thresholds, low liquidity, and strict legal regulations in the real estate market, tokenizing real estate for cross-border sales has become a recent market trend, especially since Asian investors are familiar with and fond of real estate. |
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Post time 14-11-2023 07:50:36