Security tokens are a fascinating addition to the cryptocurrency and blockchain space. With a strong focus on compliance and accessibility, numerous companies and projects explore global market opportunities. As the industry hit the $800 million market cap for the first time, the push to $1 billion remains in effect.
Security Tokens Market Cap Spikes
Ever since the security token industry started taking hold, there has been a growing interest in these new investment opportunities. Unlike their ICO counterparts many years ago – which weren’t regulated, let alone legal in many cases – security tokens are designed to tokenize real-world investment opportunities. Anyone can create a security token on any blockchain they want, but only if strict requirements are met.
As security tokens are classified as securities, issuers will need official approval from the correct instances. Moreover, they will need to be very transparent about what they offer and what they hope to achieve with their STO. Investors will often acquire a stake in the company issuing the tokens. Therefore, the success of the issuer will directly influence the appeal and value of the security token.
Per STOMarket, there are not that many security tokens to pay attention to – in terms of market cap – today. The industry is still in the early stage of development, and less than 105 tokens are tradeable today. The STO industry is very different from traditional cryptocurrencies, of which thousands exist, yet the majority have no value or purpose. Every security token has a purpose or long-term approach, creating a different incentive for potential investors.
Interestingly, the security token market cap has surpassed $800 million for the first time. Although the total market cap is slightly lower today, it shows a growing interest in these digital security-oriented offerings. At this rate, it may be a matter of time until the $1 billion market capitalization is reached by all STOs combined. That will mark another significant milestone for this industry, as there are still many unexplored opportunities.
Three Main Issuers Of Security Tokens
Similar to the cryptocurrency industry, there are clear “leaders” in the security tokens segment. More specifically, some tokens have a much higher market valuation and capitalization than others. Only three projects have a market cap of over $100 million today. However, the number is likely to increase over the coming months. Overstock, tZERO, and Blockchain Capital are the market leaders at this time.
Further down the list, there are Aspencoin, Curzio Research, SPiCE VC, Lottery.com, and others. One cannot take the variety of companies and projects exploring security tokens lightly today. The options are virtually limitless, ranging from real estate to lotteries and equity stake in a financial publishing analytics firm to a venture capitalist fund.
It is also worth noting that one can trade some of these tokens on decentralized exchanges like Uniswap. Although these options are limited, it highlights the crossover potential between security tokens and cryptocurrencies. The coming years will prove rather interesting for both industries, as there is room for tremendous market cap growth and value appreciation.