Cryptocurrency News

Security Token Sector Monthly Volume Crashed By Over 40%.

The bull run enjoyed by the security token sector within the first three quarters of this year has well and truly subsided, with monthly volume crashing by over 40% for the 2nd time within a straight row.

Since it tagged almost $22 Mln earlier in August, monthly security token trade slumped to $9.15 Mln earlier in Sept., prior sliding right down to $5.27 Mln for October.

With 98% of the sector’s trade happening on the Overstock-owned alternative trading system tZERO, it appears overstocks decide to bolster volumes through issuing a “digital dividend” within the type of security airdropped to OSTK shareholders has lost its steam.

Overstock’s OSTKO security token – that represents 50% of the combined security token market cap – shed 18% of its value within October, while monthly volume fell 20% to roughly $3 Mln. OSTKO’s market capitalization of $252 Mln would rank it as the 53rd-leading cryptocurrency asset overall consistent with CoinMarketCap.

Additionally, the token began October trading for $70 USD, nearly 20% less than OSTK shares. However, OSTKO closed the month at $57 USD – one-dollar above Overstock’s share price.

The bulk of October’s decline in [security] token volume happened within the markets for tZERO’s TZROP token, which generated just $2.15 Mln in a trade this past month – down 60% from September’s $5.29 Mln. The token also shed 8% of its value last month.

TZROP is among the 2nd-largest security token with a capitalization of $180.7 Mln, ranking it as the 65th-largest cryptocurrency asset overall.

Security Token Sector Monthly Volume Crashed By Over 40%.

While tZERO has maintained dominance over the secondary security token markets to-date, an increasing number of firms are building platforms to facilitate the formation & issuance of security tokens.

Just a week earlier, Ignuim collaborated with the equity crowdfunding platform Fundwise to launch a tokenized crowdfunding service targeting small & medium-sized enterprises.

Earlier this month, Japanese financial services giant SBI Holdings announced it might conduct a security token offering to issue shares in its e-sports subsidiary.

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