The fact that the decentralized market has many functions for users to enjoy and make use of in earning high profits has brought in many curious traders. The private and public markets have tokenized some assets that we never thought could be tokenized. The private capital markets have succeeded in tokenizing real-life assets such as commodities. The Security Tokens Offerings and the Tokenized Stocks Offerings industry is a part of the private market. This market is worth $7.5 trillion, and the STO and TSO industry is worth $915 million. This means that the industry is 0.014% of the total market value of the private market which shows growth in all aspects of the STO industry.
The problem faced by the STO industry
Lack of market makers: Because of the complexities that comes with securities, cryptocurrency market makers are unable to provide market making options for security tokens. They are unable to do this mostly because of their absence of security licenses. On the other hand, the traditionally licensed security market makers is no match for the STO licensing. This is because they don't have enough incentives to manage it because of the current size of the market.
Illiquid market: The STO market increased annually by 59%, but the monthly trading volume is at $11 million. STOs is different from traditional markets because it doesn't have a central body as individual exchanges are the ones that handle the sales and operations of their STO tradings. What these exchanges do is to hold back on the portion of the tokens that they sell which in turn reduces the liquidity of the STOs on these individual exchanges.
Non-scalable disbursal: The current methods of the STO market are complex, and it has difficult license regulations in different authorities. This acts as a huge barrier for licensed platforms to help out in the licensing process of STO, creating a lack of licensed exchanges globally. Listing across these exchanges usually have complications due to the different regulatory rules.
Solutions by IX Swap
Liquidity pools: IX Swap will be the first STO issuer to create a liquidity pool for the STO market. Here, users can stake their IX Swap token and earn interests from the pool. Once they stake the tokens, they officially liquidity providers of the pool. The mechanisms of liquidity providers for cryptocurrencies is not the same way it operates for security tokens.
Automated Marker Maker: This is one of the greatest innovations of the Blockchain technology. Since it is an important innovation, it is necessary for the STO market to adopt it. An automated market maker, also known as AMM is a DEX protocol that uses a mathematical formula to price assets with the help of Blockchain and smart contracts. The usual way is the traditional way that traditional exchanges use which is through an order book. Instead, the AMM uses a pricing algorithm which give investors the right to partake in any DeFi liquidity pool and earn profits.
.png)
For More Enquiries, Visit the Links :
Website : https://ixswap.io/
Litepaper : http://ixs.loc/app/uploads/2021/08/IX-Swap-Litepaper.pdf
Medium : https://ixswap.medium.com/
Twitter : https://twitter.com/IxSwap
Facebook : https://www.facebook.com/IXSwap/
Telegram : https://t.me/ixswapofficial
Linkedin : https://www.linkedin.com/compan
Publishers Informations :
Forum Username: Bestdss
Forum Profile Link: https://bitcointalk.org/index.php?action=profile;u=3406283
Wallet Address: 0x5915CEDf7DFd18fb2B7fA45d76369e31c503A531