When regulatory authorities in major countries like the USA, imposed stringent ICO sales
regulations, this created a hostile environment for launching an ICO. Then came the era of STOs. The inadvertent fall of ICOs at the hand of regulatory authorities is likely the reason for the advent of regulatory compliant token offerings or Security Token Offerings.

The number of Security Token Offerings during Q1 2019 observed a meteoric rise with over 130% growth over the previous quarter. 20 STOs were launched in the Q4-2018 meanwhile, Q1-2019 witnessed a whooping 47 STOs being launched.

USA Leads in Number of STOs Launched 

A country-wise analysis of the number of security token offerings that took place during this quarter reveals that USA is leading the security token landscape with as many as 11 STOs launched this quarter. Other countries which raised the bar are UK and Switzerland with 8 and 4 STOs respectively. Cayman Islands, Singapore, Sweden, UAE and Estonia all registered 2 STO launches.

Country wise STO launched
Country wise STO launched
Industry Wise STO launches
Industry Wise STO launches

Industry Breakdown for STO Launches

Trading/ Investing,  Energy and Financial services sector are among the leading sectors in the Security Token landscape with 7, 6 and 6 STO launches respectively. Healthcare emerged as an emerging sector in the landscape with 5 STO launches where firms are aiming to leverage blockchain technology for data management, drug tracing etc.

Also Read: SEC Releases its Latest Regulatory Guidelines for Securities Classification

UAE Leads the Way in Total Funds Raised

Despite USA leading the market in terms of number of STOs, these security offerings only managed to attract a measly 2% of the total funds raised. Notably, UAE became the top contender in the security token landscape having while attracting an impressive $67 million, which is 56% of the total funds raised in the industry.  Both Switzerland and Estonia contributed 135 each, Virgin Islands accounted for 5% and two other surprising mentions Belize and Seychelles took the 5% and 4% share respectively.

Funds Raised industry-wise breakdown ($122M)

During Q1 2019, the Investment sector is leading the security token landscape in terms of funds raised. Attracting a whopping $67 million in funds, Investment sector has taken 55% of the total funds raised. Emerging sector in terms of funds raised came out to be Art and Collectibles industry which came at second place contributing 13% ($16M) of the funds.

Country wise funds raised
Industry Wise Funds Raised
Industry Wise Funds Raised

Credits: The post is based on the analysis report prepared by Inwara. Read full report here

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