Security token offerings market is still at a nascent stage. But institutions and investors are leaving no stone upturned to get maximum benefits out of this high potential industry.
The security token market has seen a significant growth in the European market in last couple of years. But despite of some big names entering the market and becoming successful, this new inexperienced industry hasn’t produced desired results for everyone. In a recent report published by Fintelum, it was concluded that 26% of the security token offerings didn’t yield the expected results or were either cancelled or failed.
Statistics of European Market
There have been 35 publicly announced strictly STO projects in total. In general words, roughly one in five STOs will succeed in Europe. The report shows that only 17% (6 in number) of security token offerings have successfully concluded their token sale at this time. Though, it is very early to draw conclusions, as the market hasn’t matured enough and firms and investors are still analyzing the scope of this market. But one thing can be concluded at this stage is that STOs are not any closer to popularity of what initial coin offerings (ICOs) were several years ago. This is primarily because of very strict regulations.
Switzerland is leading the charge as the most favorable destination with 31% of the projects choosing it as their base. Notably, the country has its own crypto region in Zug, which clearly shows that there is a bright future for the various cryptocurrencies in the country. This is followed by UK and Germany with 23% and 19% share respectively.
Countries like Finland, Lithuania, and The Netherlands are strongly trying to step up their presence in this industry and have passed several favorable laws for different firms to operate. Significant progress has been made over a period of last 10 months in developing security token standards, trading platforms, and obtaining regulatory approval around the world. It will be interesting to see, how and where market places itself in coming months.
Disclaimer: This is not a financial advise. This article should not in any way be taken as a suggestion or investment advise to operate your business or for investment purposes.