Looking at crypto trends Get to know STO (Security Token Offerings)

Many of you are probably familiar with cryptocurrencies named Bitcoin and Ethereum since 2017 after the famous price skyrocketed to touch 2,000 dollars per coin or about 600,000 baht and the emergence of many ICOs, making people People turn to investing in Bitcoin hoping to make more than 10 times profits, but because more than 80% of ICOs are scams and some of them turn out to be failed projects, causing the hot trend of crypto to fall in 2018. The price of major coins such as Bitcoin dropped to the low hundreds of thousands at the end of 2018. The new trend from now on will be the emergence of Cryptocurrency in the form of STO that will change the value of stocks, land, and assets in the form of digital tokens.

What are STOs or Security Token Offerings?

First of all, everyone should know that in the crypto world, the terms coins or tokens can be used interchangeably, but every user should also know that the “coins” are being traded. All of them are Tokens which can be separated into 3 categories: 1. Currency token (such as BTC and ETH) 2. Utility token (such as ERC-20 and TR-20), and 3. Securities token (STO).

STO is intended for users. Used to buy stock capital Even though the value is only 100 baht, this is an opportunity for people with low incomes who can access the internet. Started investing in stocks In short, security tokens are similar to investment contracts, which means that security tokens represent shares of a company, income, and the receipt of dividends or interest. In terms of economic function, STOs are similar to partnership or indenture contracts. However, STOs cannot be bought or sold in Thailand, but in Estonia the distribution of STOs has been approved, while in other countries it has been approved. Turned to increasing interest in this matter These trends serve as a catalyst for other countries to begin drafting legislation for STO-related businesses.

What's interesting is that right now there is a website called DX exchange that has collected a certain amount of stocks from giant companies such as Apple, Facebook, Tesla, Google, Netflix, and others and converted them into Tokens with a 1-to-1 ratio of stocks to Tokens. XNUMX makes it possible for website users to trade these stocks on the website, which are powered by Nasdaq and Bloomberg.

To summarize, how is buying STO better than buying stocks? (personal opinion)

First, STO is a tool for turning things such as stocks or contracts into digital assets. Second, converting assets into tokens allows us to use highly secure Blockchain technology for trading and exchange, making it easier for investors in the future. Stocks can be traded even for small amounts. It is not necessary to buy a predetermined amount of shares. It creates an opportunity for people with low incomes to make a variety of investments.

In addition, the STO buying and selling market can be opened 24 hours a day, unlike other stock markets which have limited opening and closing times. It also facilitates easy fundraising. Because foreign investors can buy and sell Tokens conveniently. There is no need to go through many steps in order to invest in a major overseas company.

conclusion

When Thai law allows businesses to issue STOs, then the value of cryptocurrencies will increase.

Nominally, STOs will skyrocket compared to current ICOs, with STOs being used instead of tangible value. Whether it is company shares, land, or even a condominium address, all of these things can be exchanged for coins and provide the same compensation.

In the future, we may see Bitkub.com issue coins in place of company shares or land in the name of STO if there is ready legal support.