What for to tokenize? What are the exact benefits and risks in digital assets? What is the current state of the STO ecosystem? What will tomorrow bring? Read the talk by our Chief Editor with Ivan Jelić, the Senior Research Analyst with the Security Token Network.
Q1) Those engaged in tokenization state that in the near future every physical asset will have a digital twin. To what extent do you agree or disagree?
Well, I would say that anything is possible. Technology is developing really fast and we have seen some pretty astonishing findings in last couple of decades, so yes, I agree. But, I would rather ask a different question – is there a NEED in tokenizing everything? What are the benefits? Costs? Is it worth it? So, those are the questions that are important, and my answer to that question, from current perspective, is I DON’T KNOW.
Q2) Every day now brings news on yet another tokenization project. At the Security Token Newspaper, we have recently published news on tokenization of an exclusive hotel, student dorms, stocks, bonds, art and even underwater artifacts. What in your view cannot be tokenized?
I think that this question is partially answered in first one, we will be able to tokenize everything, but what for? Why would we do that? Just for the sake of tokenizing? I don’t agree with that.
Q3) We have seen many optimistic assessments of market caps for various digital tokens. What would be a conservative assessment of a global market cap in tokenization in the near future, mid term and long term?
I really don’t like these kind of predictions, they sound too ‘ICOish’ J I would say that I see pretty bright future for security tokens, since I do see a lot of benefits in tokenizing certain assets and owning fractions of it, which were too complicated to do in the past. For example, you could own a 2/891 parts of a building in NYC, but it was really complicated to do it and to track all the ownerships of it, collect rent, etc. This way, everything is automated through Smart contracts and it’s much easier and more efficient.
Q4) What is the most interesting recent research in tokenized assets you have encountered or been part to?
Funny that you mention this, because I am in the final phase of the first report of ‘The State of the security token ecosystem’, which is focused on STOs. Second and third part are more focused to token issuance platforms and trading platforms. This way, we at Security Token Network, are trying to get more intelligence on what is the current status of the market and what is possible direction.
Q5) What would you recommend to investors who wish to go into security tokens? How shall they proceed?
Be patient. I believe that security tokens have great future, but all of us have to be persistent and work hard on building solid foundations for the whole market. That is also one of the reasons why we are working on a previously mentioned research, to give everyone quality intelligence. BUT, I must say that this is not investment advice, DYR, and all the other Disclaimers that are popular/needed these days 🙂 No, seriously, DO YOUR OWN research, read, read and read. There are lot of interesting stuff out there, other researches, articles, etc.
Q6) We all remember well the ICO roulette. What to avoid in STOs?
Scams, scams and scams. That is also one of the things we are working on, but let’s keep it at that for now. You will be amongst first ones to know more once the time comes.
Q7) What returns in STOs are considered reasonable for now?
I think it will take time for the market to get more stable and react properly. Until then, everything is possible, even though I don’t think we will see any more Lambo/WhenMoon/1000X coins. I must admit that I did participate in that madness, and it was fun, but let’s be honest, it’s not normal. So, I think that things will be more similar to ‘traditional’ markets than crypto markets.