The Autorité des Marchés Financiers in France had proposed a way to better secure Security Tokens (STO). The latter could be the future of crypto investing. STOs had boomed months before suffering a big drop recently.
4 months in paradise thanks to the Seychelles
The STO were described as one of the most promising innovations in the cryptosphere.
From May to August 2020, sector returns were between 113% and 280%: according to data from the Security Token Group, the market saw massive gradual gains rising from $ 998,000 to nearly $ 22 million.
Despite a month of September 2020 at half mast for the vast majority of cryptocurrencies, STO are among the few assets to have posted acceptable performance with a total trading volume of $ 9.15 million.
The market capitalization of STO increased by 4% during September 2020, to reach $ 528.6 million.
This growth would be due to the listing of 3 tokens on the platform based on Seychelles, MERJ : the MERJ-S exchange STO, Uprets’ OST1 token and the MSTV-S from Minervest.
The September drop after the holidays
However, after this spectacular growth which extended over a period of 4 months, the trading volumes of STO have decreased by almost 60%.
Many tokens are victims of this drop in volume: the token volume TZROP, which contributes half of the market’s transactions, has grown from $ 11.8 million in August 2020 to $ 5.3 million in September 2020.
Its price is also down, going from $ 7.26 to $ 7.10, a decrease of 2% in one month.
The token OSTKO followed the same path with a 1.5% drop in its price; the volume of its transactions increased from $ 9.6 million to $ 3.6 million.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Blockpulse and Lemonway have teamed up to create a blockchain ownership platform through STOs. STOs could finance, in a more secure way for investors, the realization of great ideas. ArtID had also launched an STO on Ethereum to finance its development. The observation of a drop in trading volumes and the price of STOs must for the moment be interpreted as such: a simple observation. More clues will be needed to possibly confirm a structural disinterest in Security Tokens.
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