The present ICO scene is cored around utility tokens and this has allowed entrepreneurs to access funds without facing legal repercussions. However, this limits the capital in the Crypto market to only projects that can integrate utility tokens into their system. Vast portion of businesses and assets cannot do so. Thus, security tokens are the next evolutionary stage for the Crypto market and this change is close.
The cryptocurrency market is entering a stage where governments have finally acknowledged the value in regulating them. There's a massive industry shift emerging as security tokens are on the path of gaining prominence over utility tokens.
As regulatory bodies finalize laws regarding STOs, a completely new infrastructure would be needed to support security tokens, and one platform that could play a major role in the development of this infrastructure is SMART VALOR.
Paving the Path for Security Tokens
The VALOR platform tokenizes real assets or businesses and allow the sale of the emitted security tokens. The shift to security tokens, however, will go beyond just issuing asset- or equity-backed tokens.
Most cryptocurrency exchanges are unregulated institutions that cannot allow the trade of security tokens. Moreover, traditional investors would not agree to purchase assets on a marketplace where legal bodies do not sustain the buyers' rights. Thus, even if STOs do make it to an exchange, they would have a fraction of the potential liquidity.
SMART VALOR provides the secondary market for the security tokens so that the investors who participate on STOs can access immediate liquidity options. Though, the future of security tokens needs more than just an exchange.
Once VALOR's key protocol is used to tokenize the platform, the logical next step for any project would be to sell the tokens. Thus, VALOR provides and in-house launchpad for security token offerings.
SMART VALOR will allow the provision of an application marketplace. While Ethereum has been the cornerstone for the development of applications that utilize utility tokens, VALOR could provide a great opportunity to SMEs that sold security tokens on its platform to also earn a community reach by placing their application on VALOR's app marketplace.
Naturally, any securities platform will need to pay a heavy focus on identification. VALOR has established protocols to authenticate and manage user IDs.
VALOR provides many other services to investors and asset issuers, but all features are meant to either support asset issuers or investors. The founding team is focusing on laying the foundation for attracting a large community of platform users by making the platform desirable to both investors and asset issuers.
While VALOR is developing a first of its kind platform, the essential benefits still core on the blockchain.
Putting assets on the blockchain makes them greatly divisable and liquid while also making sure the trades of the tokenized assets are recorded in a trustless public ledger, executed by smart contracts, and are available around the clock.
Wrap-Up: SMART VALOR combines the native benefits of blockchain technology with the experience of professionals who have a deep-rooted work history in the securities markets. This combined force is leading to the development of possibly the most advanced security token platform.
Essential Links
🌐 Website: https://smartvalor.com/
💡 Whitepaper: https://smartvalor.com/register-whitepaper/
👨 ANN Thread: http://bitcointalk.org/index.php?topic=5047598
💻 Telegram: https://t.me/smartvalor_official
Connect with me:
https://bitcointalk.org/index.php?action=profile;u=1700741;sa=summary
Cool concept! Is smart valor the marketplace for trading security tokens, or does it also allow businesses to create security tokens?
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Both!
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Raising of capital for the use in the development of infrastructure has always been the greatest challenge for entrepreneurs and developers.
I believe this smart velor will really help ti eliminate these challenges
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I love to see how active you are @maxijgcomm :)
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Not gonna be quite active for now cause am a little bit occupiet. But will be much free in two weeks.
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Absolutely!
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Thanks for the post, I've been interested in looking at security tokens but have been caught up in some other stuff preventing me from finishing that work up. I found some good info in here that will help me formulate my ideas better and kind of direct me. These security tokens certainly seem to be beneficial for investors to not be as risky for their money they give to a project.
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The fact that the tokens are actually backed by something definitely is a positive step.
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I really enjoyed reading your post @hatu
Ive been learning a lot about STO lately and Im glad to see that you also believe that this is next big thing in crypto.
The problem STO are facing at the moment is the fact, that all major exchanges do not want to list any token that is considered security token.
I personally believe that Polymath working together with tZero will change the game within less than a year.
I also never heard about Smart Valor. Thank you for bringing it to our attention. I will definetly look into this project. From my understanding they are doing what Polymath is trying to achieve. Great. This is way to go!
Cheers,Piotr
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SMART VALOR intends to have its own exchange, that trumps the problem of not having willing exchanges.
I feel the difference is that SMART VALOR eventually intends to be decentralized.
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Also one more question @hatu
What means "willing exchanges" ? I've never heard that expression.
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Hi @hatu,
Would you really think that being decentralized as an exchange is a great advantage? Do you think investors really are taking it into consideration? Just curious of your opinion
Yours
Piotr
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Just decided to resteem your post and promote it on my little telegram channel.
It's a real great piece of work buddy
Yours
Piotr
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Hi @hatu,
Would you really think that being decentralized as an exchange is a great advantage? Do you think investors really are taking it into consideration? Just curious of your opinion
Yours
Piotr
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The founding team's goal is to rope out the regulatory concerns while allowing the community to make vote-based decisions.
I don't think a securities platform could be 100% decentralized, but I'm a pro-decentralization as it puts the community in power. The more of it, the merrier I am haha :)
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Hi @hatu
to tell you the truth, more I experience the world more Im scare to hear that people want to give power to the community.
Governments are part of a community as well. And we need someone to rule. There is enough places where regular people have to much power and it always attracts greed. And it hardly ever ends up well for anyone.
Humans are not mature enough to hold that much power.
anyway sorry for my little off-topic mumble :)
yours
Piotr
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Greatly appreciate that Piotr! :)
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What is the difference between security tokens and any other normal token??
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Your typical token is a utility token and it allows you to access some service or product. Security tokens are the tokenized version of a typical security and are therefore tokens backed by some asset or equity.
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@n1hal
Also from investor point of view:
For this reason In current days ICO are considered high risk investment. Security Tokens are the future of crypto. It's really worth to learn more about this topic.
Cheers, Piotr
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You know your stuff buddy!
As Piotr said, most major investment institutions cannot put their money in investment channels that are not under a legal framework. Security tokens take Crypto to a point where this market gains access to capital from major financial entities.
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Hi dear sir
Sir your view on infrastructure sector use by cryptocurrency but my question is many countries banned cryptocurrency like india,china and other.so how will success crypto token in infrastructure in all world?
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Adoption of new developments is typically slow.
Those decisions will eventually be repealed as blockchain technology proves its worth.
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What a smart review there smart @hatu about smart SMART VALOR with incredible valor security-wise for crypto tokens. I guess its users woukd have better rest of minds compared to an insecured business activity in all.
Thanks for sharing. 😊
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Valid point.
Security tokens would definitely give a greater peace of mind as they have to follow the limitations of legal framework.
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Awesome content thank you so much for sharing.
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Happy to share updates that pave the future of the Crypto market.
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Great article! Keen to see how this new world of security tokens is going to unfold in the future.
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That makes the two of us!
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Superab guys
Posted using Partiko Android
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Agreed :)
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good research and nice writing
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Thank you.
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Great article, I think it gonna work more efficiently in future:)
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Yap security is needed very much....to this industry...
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