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Swarm, Securitize Chiefs Debate Security Token Trends at BTC 2019

When the crypto winter hit last year and ICO volumes plummeted, critics divided the blame for fairly evenly between the inherent volatility of ether and low adoption of security token trends, both leading to high losses on defunct projects framed inappropriately as investment opportunities.

Are STOs better than ICOs?

While some cryptocurrency experts focus on stablecoins as a price stabilizing measure, other blockchain advocates have lobbied for increased transparency from fundraisers. There is a growing demand for the use of security tokens, as these are subject to regulation, offering investors additional layers of legal and financial protection.

Discover Barcelona Trading Conference – A Top Tier Crypto Trading Event

However, while the number of security token platforms has increased exponentially over the last year, STOs have not seen the explosive levels of growth which greeted the first generation of ICOs.

Finance Magnates has dedicated a session of the upcoming Barcelona Trading Conference to exploring why security token promises have not lived up to their full potential. Additionally, the experts on the panel will debate which solutions are likely to speed up the implementation of blockchain securities trading.

Security token trends for greater equality

There are at least two major strategies used by the majority of today’s security token trends. The first is democratization.

Companies such as Swarm work primarily with existing equity funds to provide additional trading avenues without the need for creating an entirely new business structure. The firms are able to access new sources of liquidity, and it levels the playing field for investors who would not typically be able to participate in these types of investments.

 

 

In an interview with John Furrier of The Cube during Blockchain Week NYC 2018, Philipp Pieper, Co-Founder and CEO of Swarm Fund said that most of the preparation in their STOs goes into vetting the issuing companies.

According to Pieper, “Before we take it to market, and actually offer it to the broader community, we really want to make sure that this is something that has validity to it.”