Event Wrap-Up: Security Tokens, Hope or Hype?
Token News Asia, in collaboration with BlockchainSpace Philippines and Decentralize Today, last night held a discussion event in Makati as a primer for the Decentralizing the Future Conference happening this upcoming November 10 at the Peninsula Manila.
During the pre-event meetup, TagCash Founder Mark Vernon, Bloom Solutions Co-Founder Luis Buenaventura, and SCI Co-founder Miguel Cuneta led the STO talks to shed light on the concept and explain its definition. Comparable to Initial coin offerings (ICOs) when it comes to issuance of a crypto coin or token that represents an investment, an STO alternatively represents an investment contract for assets like bonds, funds, and even a real estate investment trust.
Cuneta, Co-Founder of Satoshi Citadel Industries, mentioned during the blind dating-themed talks that the conversely believes tokenized form of security lessens the impact of some of the advantages brought by public blockchain technology like immutability and not relying on a central point of control, thus making it useless to use the technology on it. He also noted that ICOs which raised money through cryptocurrency-based crowdsourcing in 2017 were a big deal, but a great majority of them ended up as scams and are now worthless today, warning that STO’s could also go the way of ICOs. Buenaventura stressed that STOs are still very new and that it will take some time to find its footing, but a lot of smart people are working on making it possible. Mark Vernon, a prolific entrepreneur and investor, believes that STOs will be a big thing and is working on projects that will help push the technology forward.
As the female guest posed the burning questions revolving around STOs, the three speakers explained the difference of an STO to an ICO and IPO, and how it is regulated on a global scale. Currently, STOs are banned from countries like China, South Korea, and Vietnam. Still, it is undeniable that STOs show lower risks compared to an ICO since they are compliant to securities laws that ensure transparency is observed and are backed by real-world assets which can be assessed easily for its pricing configuration. At the end of the event, Luis Buenaventura was chosen as the “winner” of the friendly debate.
STOs are a new breed of investments made accountable and tout advantageous ways that can greatly benefit investors. Middlemen like banks and brokerages are removed from the equation which reduces costs, while the blockchain technology itself enables an integral recording of the investment ownership that is needed on both sides. But with the cutting of middlemen comes a heavier administrative burden for the companies and the restriction on many countries contribute to a reduction in the population of possible investors.
With STOs on the rise and with more questions being asked on how companies can leverage on the benefits it brings, the upcoming conference this November could not have come at a better time. Attendees will be exposed on how blockchain is redefining the finance, trading, and gaming industries and witness blockchain-based projects like the decentralized stablecoin and community governance platform MakerDAO and the world’s first fully licensed blockchain lottery Quanta.
BlockchainSpace is a blockchain dedicated community platform hosting meetups, hackathons and specialized industry forums with an anchor location in the heart of the Manila business district.
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