If you are not familiar with security token offerings (STOs), maybe you should be.
With regulators gunning for initial coin offerings (ICOs) and now going after decentralised exchanges (DEXs) too, industry players are looking at news ways of raising money.
Changing the name to “token generation event” doesn’t cut it with most regulators and, in and of themselves, neither do simple agreements for future tokens (SAFTs).
According to CoinShares chairman Daniel Masters, STOs will be the next big thing in crypto.
Speaking as part of a panel at a breakfast briefing organised by Dow Jones media outlets Financial News and MarketWatch, he identifies a third wave for crypto.
According to Masters, Bitcoin ushered in a “new era in value transfer”, with the second wave led by Ethereum with its “frictionless way to globally form capital” and today a third wave of security tokens “with particular advantages for assets that have historically remained in private hands”.
CoinShares sponsored the event and is the company behind the XBT Provider Bitcoin and Ethereum exchange traded notes. Trading in the ETNs in the US was temporarily suspended in September because of confusion over the difference between ETNs and exchange traded funds (ETNs are unsecured debt securities).