Is 2019 the year of the security token?

01 Jan, 2019
by Arthur Sillers
Is 2019 the year of the security token?

As the new year rolls around, crypto commentators are making a number of prediction- but one consistent theme is that many are calling 2019 the year when security tokens really come into their own.

A Medium post from before Christmas has started to see some traction just before the new years festivities which makes the claim that 'security tokens will create a larger market than US public equity.'
Blockchain Flash News went out and predicted that 2019 will be the 'Year of Security Tokens,' though they had made similar predictions last year, and concede that 2018 was 'just the beginning.' Still, many commentators are saying that 2019 will be the year that Security Tokens really coming into their own. Crypto News predicted that security tokens will overtake utility tokens, which are going by the wayside, specifically because big businesses and traditional finance players are becoming interested in them.

Crypto is finally getting some mainstream acceptance, but there is a lot of hesitance to go all in on crypto. On the other hand, crypto enthusiasts are hesitant about security tokens because they face regulation by the SEC and other bodies, and in many ways depart from some 'core concepts' which crypto was created to bear out. Big businesses and traditional finance actors, by contrast, are much more confortable with the SEC and other regulators, and are much less interested in some of the conceptual motivations which Bitcoin was created in pursuit of. 

Read more: Source says Nasdaq is exploring security platform

Lastly, as ICO's become increasingly unpopular through their association with scams, and simply because so many of them failed to turn a profit, security tokens may rise to take their place as the normative funding model for crypto endeavors. Earlier this year, rumors started to build that the Nasdaq would offer crypto related assets

This hasn't quite come to fruition, but Nasdaq has announced that they are in talks with Symbiont, which is a blockchain-based securities offering company. If indeed Nasdaq, and other large scale financial institutions get behind security tokens, and STO's, 2019 might indeed be the 'year of the security token.'

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Will 2019 be the 'year of the security token?'

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