The bullish momentum of the security token sector in the first three quarters of 2020 has subsided significantly. The monthly volume has decreased by more than 40% for the second time in a row.
With a valuation of nearly $ 22 million in August, monthly security token trading dropped to $ 9.15 million in September, before falling to $ 5.27 million in October.
With 98% of the sector’s trading going through Overstock’s alternative trading system tZERO, Overstock’s plan to increase volume by issuing a “digital dividend” in the form of collateral that will be thrown to OSTK shareholders appears to be underway To have lost speed.
Overstock’s OSTKO security token, which accounts for 50% of its combined security token market cap, lost 18% of its value in October while its monthly volume fell 20% to around $ 3 million. According to CoinMarketCap, OSTKO would be the 53rd largest crypto asset overall, with a market cap of $ 252 million.
Oddly enough, the token started trading for $ 70 in October, almost 20% less than OSTK shares. However, OSTKO closed the month at $ 57 – one dollar higher than Overstock’s share price.
Most of the security token volume that fell in October took place in the markets for tZERO’s TZROP token, which traded just $ 2.15 million last month – a 60% decrease from $ 5.29 million in September. The token also lost 8% of its value in the last month.
With a capitalization of $ 180.7 million, TZROP is the second largest security token and thus the 65th largest crypto asset overall.
While tZERO has maintained dominance in the secondary security token markets to this day, more and more companies are building platforms to facilitate the creation and issuance of security tokens.
A week ago, Ignuim teamed up with the equity crowdfunding platform Fundwise to launch a crowdfunding service for small and medium-sized businesses.
Last month, Japanese financial services giant SBI Holdings announced that it would launch a securities offering to issue shares in its esports subsidiary.