Safety token volumes drop in half for 2 months in a row
The bullish momentum of the security token sector in the first three quarters of 2020 has subsided significantly. The monthly volume has decreased by more than 40% for the second time in a row.
With a valuation of nearly $ 22 million in August, monthly security token trading dropped to $ 9.15 million in September, before falling to $ 5.27 million in October.
With 98% of the sector's trading going through Overstock's alternative trading system tZERO, Overstock's plan to increase volume by issuing a "digital dividend" in the form of collateral that will be thrown to OSTK shareholders appears to be underway To have lost speed.
Overstock's OSTKO security token, which represents 50% of its combined security token market cap, lost 18% of its value in October, while monthly volume fell 20% to around $ 3 million. OSTKO's market capitalization of $ 252 million would rank it as the 53rd largest crypto asset overall, according to CoinMarketCap.
Oddly enough, the token started trading for $ 70 in October, almost 20% less than OSTK shares. However, OSTKO closed the month at $ 57 – one dollar higher than Overstock's share price.
Most of the security token volume that fell in October took place in the markets for tZERO's TZROP token, which traded just $ 2.15 million last month – a 60% decrease from $ 5.29 million in September. The token also lost 8% of its value in the last month.
TZROP is the second largest security token with a capitalization of 180.7 million US dollars, making it the 65th largest crypto asset overall.
Top 5 security tokens by market capitalization: STOMarket
While tZERO has maintained dominance in the secondary security token markets to this day, more and more companies are building platforms to facilitate the creation and issuance of security tokens.
A week ago, Ignuim teamed up with the equity crowdfunding platform Fundwise to launch a crowdfunding service for small and medium-sized businesses.
Last month, Japanese financial services giant SBI Holdings announced that it would launch a securities offering to issue shares in its esports subsidiary.