One of the “Big Four” firms in the UK recently released a report analyzing the difference between STOs and ICOs. The report was developed in collaboration with the Swiss Crypto Valley Association.
We’ve discussed here on The Tokenist how there is a fundamental asymmetry of information in the security token space. Although there has been a growing body of work documenting this emerging industry, the public knowledge on it is still quite limited.
According to the report, PwC describes STOs are “much more mature and regulated” than their ICO counterparts. STOs provide holders with various financial rights while also combining it with some expected ICO features. It manages to merge the accessibility of ICOs with basic KYC and AML regulations.
Although the number of STOs and ICOs decreased in the latter-half of 2018, the report makes the case that token issuers will be moving towards STOs more and more in the future.
The report also makes the case that commodities such as gold and oil will soon also fall to tokenization.
If you’ve been following security tokens, much of this might be clear to you already. But the fact that PwC is now writing about security tokens likely means that the industry is becoming more and more visible in the financial world. Security tokens are starting to be taken seriously.
What do you think of the report? Are ICOs dying out or will they experience a possible resurgence? Let us know your thoughts in the comments.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.