The present ICO scene is cored around utility tokens and this has allowed entrepreneurs to access funds without facing legal repercussions. However, this limits the capital in the Crypto market to only projects that can integrate utility tokens into their system. Vast portion of businesses and assets cannot do so. Thus, security tokens are the next evolutionary stage for the Crypto market and this change is close.
The cryptocurrency market is entering a stage where governments have finally acknowledged the value in regulating them. There's a massive industry shift emerging as security tokens are on the path of gaining prominence over utility tokens.
As regulatory bodies finalize laws regarding STOs, a completely new infrastructure would be needed to support security tokens, and one platform that could play a major role in the development of this infrastructure is SMART VALOR.
Paving the Path for Security Tokens
The VALOR platform tokenizes real assets or businesses and allow the sale of the emitted security tokens. The shift to security tokens, however, will go beyond just issuing asset- or equity-backed tokens.
Most cryptocurrency exchanges are unregulated institutions that cannot allow the trade of security tokens. Moreover, traditional investors would not agree to purchase assets on a marketplace where legal bodies do not sustain the buyers' rights. Thus, even if STOs do make it to an exchange, they would have a fraction of the potential liquidity.
SMART VALOR provides the secondary market for the security tokens so that the investors who participate on STOs can access immediate liquidity options. Though, the future of security tokens needs more than just an exchange.
Once VALOR's key protocol is used to tokenize the platform, the logical next step for any project would be to sell the tokens. Thus, VALOR provides and in-house launchpad for security token offerings.
SMART VALOR will allow the provision of an application marketplace. While Ethereum has been the cornerstone for the development of applications that utilize utility tokens, VALOR could provide a great opportunity to SMEs that sold security tokens on its platform to also earn a community reach by placing their application on VALOR's app marketplace.
Naturally, any securities platform will need to pay a heavy focus on identification. VALOR has established protocols to authenticate and manage user IDs.
VALOR provides many other services to investors and asset issuers, but all features are meant to either support asset issuers or investors. The founding team is focusing on laying the foundation for attracting a large community of platform users by making the platform desirable to both investors and asset issuers.
While VALOR is developing a first of its kind platform, the essential benefits still core on the blockchain.
Putting assets on the blockchain makes them greatly divisable and liquid while also making sure the trades of the tokenized assets are recorded in a trustless public ledger, executed by smart contracts, and are available around the clock.
Wrap-Up: SMART VALOR combines the native benefits of blockchain technology with the experience of professionals who have a deep-rooted work history in the securities markets. This combined force is leading to the development of possibly the most advanced security token platform.
Essential Links
š Website: https://smartvalor.com/
š” Whitepaper: https://smartvalor.com/register-whitepaper/
šØ ANN Thread: http://bitcointalk.org/index.php?topic=5047598
š» Telegram: https://t.me/smartvalor_official
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