Safety token volumes crash by half for 2 consecutive months

The bullish momentum loved by the safety token sector within the first three quarters of 2020 has nicely and actually subsided, with month-to-month quantity crashing by greater than 40% for the second time in a row.

Because it tagged nearly $22 million in August, month-to-month safety token commerce slumped to $9.15 million in September earlier than sliding right down to $5.27 million for October.

With 98% of the sector’s commerce going down on the Overstock-owned different trading system tZERO, it seems Overstock’s plan to bolster volumes via issuing a “digital dividend” within the type of safety airdropped to OSTK shareholders has misplaced its steam.

Overstock’s OSTKO safety token — which represents 50% of the mixed safety token market cap — shed 18% of its worth throughout October, whereas its month-to-month quantity fell 20% to roughly $three million. OSTKO’s market cap of $252 million would rank it because the 53rd-largest crypto asset general, based on CoinMarketCap.

Curiously, the token started October trading for $70, almost 20% decrease than OSTK shares. Nonetheless, OSTKO closed the month at $57 — a greenback greater than Overstock’s share worth.

The majority of October’s decline in safety token quantity occurred within the markets for tZERO’s TZROP token, which generated simply $2.15 million in commerce this previous month — down 60% from September’s $5.29 million. The token additionally shed 8% of its worth final month.

With a capitalization of $180.7 million, TZROP is the second-largest safety token, rating it because the 65th-largest crypto asset general.

Supply: STOMarket

Whereas tZERO has maintained dominance over the secondary safety token markets up to now, an rising variety of corporations are constructing platforms to facilitate the creation and issuance of safety tokens.

One week in the past, Ignuim teamed up with fairness crowdfunding platform Fundwise to launch a tokenized crowdfunding service concentrating on small- and medium-sized enterprises.

Final month, Japanese monetary providers large SBI Holdings introduced it will conduct a security token offering to problem shares in its e-sports subsidiary.

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